Court Declines to Dismiss Contract Claim Even Though No Damages Were Alleged

On October 29, 2024, Justice Ruchelsman of the Kings County Commercial Division issued a decision in Roytman v. Gluzman, 2024 NY Slip Op. 33870(U), declining to dismiss a breach of contract claim even though no damages were alleged, explaining:

It is well settled that to succeed upon a claim of breach of contract the plaintiff must establish the existence of a contract, the plaintiff’s performance, the defendant’s breach and resulting damages. Therefore, where a plaintiff cannot demonstrate any damages were suffered the Complaint fails to adequately allege any breach of contract claim. Again, in Milan Music Inc. v. Emmel Commnications Booking Inc., 37 AD3d 206, 829 NYS2d 485 [1st Dept., 2007] cited by defendant the court stated that without a clear demonstration of damages; there can be no claim for breach of contract. However, the Second Department, in Perry v. McMahan, 164 AD3d 1488, 84 NYS3d 508 [2d Dept., 2018] held that in breach of contract actions, actual damages are not an essential element, and nominal damages are recoverable to vindicate contract rights. Again, in AB Oil Services Ltd., v. TCE. Insurance Services Inc., 188 AD3d 624, 133 NYS3d 638 [2d Dept., 2021] the court held a cause of action for breach of contract should not be dismissed where no actual damages and alleged since nominal damages, are always available. This may only afford the plaintiff with nominal damages as an eventual award since no actual damages are alleged. However, the absence of actual damages is not a basis upon which to dismiss the breach of contract cause of action. Therefore, the motion seeking to dismiss the first cause of action is denied.

(Internal quotations and citations omitted).

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