Breach of Contract Claim Dismissed for Failure to Allege Damages

On September 9, 2020, Justice Masley of the New York County Commercial Division issued a decision in 2 Girls Accys LLC v. Larrea, 2020 NY Slip Op. 33005(U), dismissing breach of contract claims for failure to allege damages, explaining:

In the 13th and 14th causes of action, plaintiffs allege contractual violation by Mehjeez. These claims could be viable, but it is elementary that a claim for breach of contract must allege damages resulting from such breach. Plaintiff fails to specify any damages, attributable to the breaches alleged.

(Internal citations omitted).

A key element in commercial litigation is proving damages. As this decision shows, the inability to show damages can be fatal to a claim. Contact Schlam Stone & Dolan partner John Lundin at jlundin@schlamstone.com if you or a client have questions regarding proving damages.