Do Fixed-Term Independent Contractors Have A Duty To Mitigate?

Fixed-term contracts are often complex and can create risk. Companies looking to terminate fixed-term contracts with their independent contractors can breathe a bit easier after an Ontario appeal court found that, generally, independent contractors under fixed-term contracts have a duty to mitigate their damages. This diverges from the approach the same court has applied for employees.

Trial Court – No duty to mitigate, like employees!

In Monterosso v. Metro Freightliner Hamilton Inc., 2023 ONCA 413, the Metro Truck Group of Companies (Metro) entered into a 72-month term fixed term contract with Antonio Monterosso o/a Truck Leasing Canada (Monterosso). Metro terminated the contract early, such that there were 65 months of the contract "remaining" after such termination. At trial, the court ruled that an independent contractor who had entered into a fixed-term contract was entitled to fees from the time of notice of termination to the end of the fixed term of