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Carmody and Fontan Overturn Law on Elements of Breach of Contract

In the most recent appellate opinion in this breach of a non-competition contract case brought by Business Communications, Inc., the Mississippi Supreme Court held that "whether a plaintiff 'has been thereby damaged monetarily' is not an element of a breach-of-contract claim'".  This decision reversed a line of cases that held damages were an element of a breach of contract cause of action.  The Court found that to prove breach of contract, in this instance a non-competition contract for which damages may often be difficult to prove, the plaintiff must prove only the existence of a valid contract which the defendant breached.  Damages are a remedy, not an element of the breach.  The jury's verdict of $1,000 was considered to be "nominal" damages which was sufficient to invoke the contract provision entitling BCI to attorney's fees and costs. The issue of attorney's fees and costs was remanded to the trial court.   BCI Opinion

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