NEW YORK, May 30 (Reuters) - A New York state appeals

court said Donald Trump can sue his niece Mary Trump for giving

the New York Times ( NYT ) information for its Pulitzer

Prize-winning 2018 probe into his finances and his alleged

effort to avoid taxes.

The Appellate Division in Manhattan found a "substantial"

legal basis for Donald Trump to claim that his niece violated

confidentiality provisions of a 2001 settlement over the estate

of his father, Fred Trump Sr.

A five-judge panel said it was unclear whether Mary Trump's

disclosures were subject to confidentiality, or how long both

sides intended the provisions to remain in effect.

"At a minimum, nominal damages may still be available on the

breach of contract claim even in the absence of actual damages,"

the court said. Donald Trump had sought $100 million.

Lawyers for Mary Trump did not immediately respond to

requests for comment.

They had argued that Donald Trump's lawsuit violated a state

law to stop litigation designed to "chill and retaliate against"

free speech, including communications with the press.

Alina Habba, a lawyer for the former U.S. president, said

Trump looked forward to holding Mary Trump "fully accountable

for her blatant and egregious breach of contract."

Thursday's decision upheld a June 2023 ruling by Justice

Robert Reed of the state Supreme Court.

Reed also dismissed Donald Trump's claims against the Times

and three reporters, and in January ordered him to pay $392,639

of their legal fees.

In November 2022, Reed dismissed Mary Trump's separate

lawsuit accusing her uncle and two of his siblings of defrauding

her out of a multi-million-dollar inheritance.

The Times' reporting challenged Donald Trump's claim that he

was a self-made billionaire.

It said he received the equivalent of $413 million from his

father, largely the result of "dubious" tax schemes in the

1990s, including undervaluing his family's real estate holdings.

Donald Trump has denied wrongdoing.

Mary Trump, a psychologist, identified herself as a Times

source in her 2020 tell-all, "Too Much and Never Enough: How My

Family Created the World's Most Dangerous Man."

The case is Trump v Trump, New York State Supreme Court,

Appellate Division, 1st Department, No. 2023-03021.