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In re Worldcom, Inc.

United States Bankruptcy Court for the Southern District of New York

361 Bankr. 675 (Bankr. S.D.N.Y. 2007)

Relevant factsFree

In 1995, MCI (defendant) signed a ten-year endorsement agreement with Jordan (plaintiff), licensing Jordan's services to advertise MCI products while letting him separately advertise other, non-competing products. When MCI filed for bankruptcy in 2002 and rejected the agreement, Jordan filed an $8 million breach-of-contract claim, arguing he had no duty to mitigate either because he was a 'lost volume seller' capable of performing multiple deals simultaneously, or because no substantially similar endorsement deal was available, or because pursuing a replacement deal would have diluted his image.

IssueFree

Whether a non-breaching party has a duty to mitigate the damages resulting from a breach.

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