A system and method for reducing rotor loads in a wind turbine that includes a brake and one or more rotor blades coupled to a rotor. Upon detection of a loss of counter torque and a blade-pitch failure in at least one rotor blade, a processor reduces a generator overspeed threshold value by a predetermined amount and determines a brake-release threshold value. The brake is applied to slow the rotor if the generator/rotor speed exceeds the reduced generator/rotor overspeed threshold value. In addition, the brake is applied to slow the rotor until the generator/rotor speed is below the brake-release threshold value. The rate of change of the pitch angle of the rotor blade may be varied as the blade moves toward feather in response to the detected blade-pitch failure.