## Facts

- Sutherland contracted in writing to perform entertainment services at defendants’ museum for 36 weeks at $35 per week.
- The agreement allowed defendants to discharge Sutherland only “for cause.”
- At the end of the 18th week, defendants demanded a unilateral pay reduction to $24 per week.
- Sutherland refused to accept the reduction, and defendants discharged him.
- The jury found the discharge was not for contractual cause, but solely for refusing the wage reduction.
- During the remaining 18 weeks of the term, Sutherland earned $60 from other work.
- Sutherland admitted he declined or abandoned a definite opportunity that would have produced an additional $57 during the same period.
- Sutherland sued for breach of contract seeking the unpaid wages for the unexpired term.

## Issues

1. Whether discharging an employee for refusing a unilateral wage reduction breaches a fixed-term employment contract permitting discharge only for cause.
2. If the discharge was wrongful, whether damages must be reduced by (a) wages actually earned after discharge and (b) wages the employee could have earned through reasonable efforts, including a specific opportunity the employee declined.

## Decision

- The court accepted the jury’s finding that defendants discharged Sutherland without contractual cause and thereby breached the fixed-term contract.
- The court held the proper damages measure was the remaining contract wages minus mitigation amounts.
- The court required deductions for both the $60 Sutherland actually earned and the $57 he could have earned from the declined opportunity.
- The court modified the damages award to reflect these deductions, affirming liability but reducing recovery accordingly.

## Legal Principles

- For wrongful discharge from a fixed-term employment contract, baseline damages are the contract wages for the unexpired term.
- Damages are reduced by compensation the employee actually earned during the remaining contract period.
- Damages are also reduced by compensation the employee could have earned through reasonable diligence in obtaining suitable substitute employment.
- The employer may reduce damages by proving specific suitable opportunities were available and were unreasonably refused by the employee.
- Mitigation limits the amount of recovery; it does not negate the employer’s breach.

## Conclusion

A fixed-term employee wrongfully discharged for refusing an attempted unilateral pay cut may recover the unpaid wages for the remainder of the term, but the award must be reduced by both actual post-discharge earnings and amounts the employee could have earned by reasonably accepting suitable, available work.


Sutherland v. Wyer, 67 Me. 64 (Me. 1877)