In re Worldcom, Inc.
United States Bankruptcy Court for the Southern District of New York
361 Bankr. 675 (Bankr. S.D.N.Y. 2007)
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.
Whether a non-breaching party has a duty to mitigate the damages resulting from a breach.