Efforts to Mitigate Losses Did Not Affirm Contract After Breach

On July 2, 2019, the First Department issued a decision in Lantau Holdings Ltd. v. Orient Equal Intl. Group Ltd., 2019 NY Slip Op. 05328, holding that efforts to mitigate losses did not affirm a contract after it was breached, explaining:

The court correctly concluded that defendant did not affirm the contracts after discovering plaintiff's breach. Defendant's attempt to sell the non-conforming shares was not required by the contracts, but was an act in mitigation of its damages.

(Internal citations omitted).

Part of the reason parties to commercial contracts choose to have those contracts governed by New York law is that New York courts typically enforce contracts as written. Contact Schlam Stone & Dolan partner John Lundin at jlundin@schlamstone.com if you or a client have questions regarding the breach of a contract under New York law.