Of course they did. Or they'd be wrong!
Edit: Well, actually, technically the issue of whether the contract still exists or not is a different question to whether you have a right to damages. The contract may well have come to an end when you accepted their repudiation (their refusal to supply and the return of the payment), but that doesn't mean you aren't entitled to the damages you are seeking. Alternatively, you haven't accepted that repudiation and are still trying to get them to fulfill the contract. Either way, it matters not a jot, practically.