Parker v. Twentieth Century-Fox Film Corp., 3 N.Y.2d 176 (1968)
An employee wrongfully discharged is not required to mitigate damages by accepting employment of a different or inferior kind.
Summary
Shirley MacLaine Parker (Plaintiff) sued Twentieth Century-Fox Film Corp. (Defendant) for breach of contract after Defendant cancelled a film project and offered Plaintiff a role in a different film, which Plaintiff deemed inferior. The key issue was whether Plaintiff’s refusal to accept the substitute role constituted a failure to mitigate damages, thereby barring her recovery. The court held that because the substitute role was different and inferior, Plaintiff was not required to accept it to mitigate damages. This case illustrates the principle that an injured party need not accept substantially different employment to mitigate damages.
Facts
Plaintiff contracted with Defendant to star in a musical film titled “Bloomer Girl” for a guaranteed salary of $750,000. Prior to production, Defendant decided not to produce the film. Defendant offered Plaintiff the lead in a western film, “Big Country, Big Man,” with the same guaranteed salary and similar billing and directorial provisions. However, “Big Country, Big Man” was not a musical, and it was to be filmed in Australia, while “Bloomer Girl” was to be filmed in Los Angeles. Plaintiff refused the substitute role and sued for breach of contract, seeking the full contract price.
Procedural History
The trial court granted summary judgment in favor of Plaintiff. Defendant appealed, arguing that Plaintiff failed to mitigate damages by refusing the substitute role. The California Supreme Court affirmed the trial court’s decision, holding that the offer of the lead in “Big Country, Big Man” did not have to be accepted as mitigation, and upheld the summary judgment for Parker.
Issue(s)
Whether an employee wrongfully discharged is required to mitigate damages by accepting employment of a different or inferior kind.
Holding
No, because the substitute employment offered was both different and inferior, the Plaintiff was not required to accept it to mitigate damages.
Court’s Reasoning
The court reasoned that the general rule requiring mitigation of damages only applies when the substitute employment is substantially similar to the original employment. The court articulated the rule: “The general rule is that the measure of recovery by a wrongfully discharged employee is the amount of salary agreed upon for the period of service, less the amount which the employer affirmatively proves the employee has earned or with reasonable effort might have earned from other employment.” However, this rule is qualified. The court stated, “before projected earnings from other employment opportunities not sought or accepted are allowable in mitigation, the employer must show that the other employment was comparable, or substantially similar, to that of which the employee has been deprived; the employee’s rejection of or failure to seek other available employment of a different or inferior kind may not be resorted to in order to mitigate damages.” Here, the substitute role in “Big Country, Big Man” was deemed different and inferior because it was a western rather than a musical, and it involved filming in Australia instead of Los Angeles. Therefore, Plaintiff was not obligated to accept it to mitigate damages. The dissenting opinion argued that the majority’s interpretation of the mitigation principle placed a premium on ignorance of the law. The dissent contended that if the plaintiff knew the exclusive employment provision of the contract was void, she would have sought other work regardless of the defendant’s refusal to release her. The dissent further argued that the case was tried on a different theory than that on which the reversal was sought and granted.