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34. If the teacher sues the school for breach of contract, what is her most likely recovery?
On June 15, a teacher accepted a contract for a one-year position teaching math at a public high school at a salary of $50,000, starting in September. On June 22, the school informed the teacher that, due to a change in its planned math curriculum, it no longer needed a full-time math teacher. The school offered instead to employ the teacher as a part-time academic counselor at a salary of $20,000, starting in September. The teacher refused the school's offer. On June 29, the teacher was offered a one-year position to teach math at a nearby private academy for $47,000, starting in September. The teacher, however, decided to spend the year completing work on a graduate degree in mathematics and declined the academy's offer.
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A is incorrect. The teacher is entitled to recover damages that will place her in the position she would have been in but for the school's breach. However, an injured party is expected to make reasonable efforts to mitigate the loss resulting from the other party's breach. In the case of a wrongfully discharged employee, the employee is expected to accept an offer of comparable employment. If the employee fails or refuses to do so, the employee's recovery is reduced by the amount of the loss that the employee could have avoided by accepting comparable employment. Here, the teacher's damages of $50,000 should be reduced by the $47,000 she would have earned if she had accepted the comparable teaching position at the private academy. Therefore, the teacher is entitled to recover $3,000 from the school.
B is incorrect. The teacher is entitled to recover damages that will place her in the position she would have been in but for the school's breach. However, an injured party is expected to make reasonable efforts to mitigate the loss resulting from the other party's breach. In the case of a wrongfully discharged employee, the employee is expected to accept an offer of comparable employment. If the employee fails or refuses to do so, the employee's recovery is reduced by the amount of the loss that the employee could have avoided by accepting comparable employment. Because it is unlikely that a court would consider the counseling position to be comparable employment, the teacher's damages should not be reduced by the $20,000 she would have earned if she had accepted that position. On the other hand, her damages of $50,000 should be reduced by the $47,000 she would have earned if she had accepted the comparable teaching position at the private academy. Therefore, the teacher is entitled to recover $3,000 from the school.
D is incorrect. The teacher and the school entered into an enforceable contract, and the school's unjustified nonperformance constituted a breach of contract. The teacher is therefore entitled to recover damages that will place her in the position she would have been in but for the breach and need not show reliance in order to recover. However, while she is entitled to damages from the breach, an injured party is expected to make reasonable efforts to mitigate the loss resulting from the other party's breach. In the case of a wrongfully discharged employee, the employee is expected to accept an offer of comparable employment. If the employee fails or refuses to do so, the employee's recovery is reduced by the amount of the loss that the employee could have avoided by accepting comparable employment. Here, the teacher's damages of $50,000 should be reduced by the $47,000 she would have earned if she had accepted the comparable teaching position at the private academy. Therefore, the teacher is entitled to recover $3,000 from the school.