On October 12, 2023, Justice Chan of the New York County Commercial Division issued a decision in Lion Point Capital, LP v. Burgerfi Intl., Inc., 2023 NY Slip Op. 33740(U), holding that a contract claim survives even if there are no damages, explaining:
A prima facie case on a breach of contract claim requires the existence of a contract, the plaintiff’s performance thereunder, the defendant’s breach thereof, and resulting damages. For the damages element, nominal damages are always available in breach of contract actions. In addition to nominal damages, courts may award general damages that are the natural and
probable consequences of defendant’s breach. In this regard, a plaintiff’s damages must ordinarily and naturally flow from the non-performance of defendant.. . .
The court concludes that Lion Point has established a prima facie case on BFI’s liability for breach of contract.
. . .
(Internal quotations and citations omitted).
In any event, Lion Point’s summary judgment motion as to liability is appropriate because Lion Point is at least entitled to nominal damages to vindicate its contractual rights.