In the recent case of Denaro Ltd v Onyx Bar & Café (Cambridge) Ltd (HC, 01/02/2011), the Court upheld that restitutionary damages could be awarded for a breach of contract. The case concerned a purchase of a café/bar which included a restraint of trade clause in the sale. The vendor, unbeknown to the purchaser, never intended to honour the agreement and within a few months of settlement had established a restaurant next door. This was an unquestionable breach of the restraint of trade agreement. The purchaser subsequently sought restitutionary damages against the vendor for breach of contract. The case is interesting however, because the plaintiff managed to make the expected profit in the contract and therefore did not directly suffer loss from the competition. The question before the Court therefore was whether a restorative remedy (“restitutionary damages”), which by nature are to restore the claimant to their original position, could be awarded to the plaintiff who suffered no direct loss. The Court concluded that they could since the plaintiffs had paid for something they did not receive; the goodwill of the company. Therefore, with the support of precedent, the plaintiffs where entitled to a sum that represented the value of the restraint of trade clause. Restitutionary damages were awarded.