What are nominal damages?

Nominal damages refers to a damage award issued by a court when a legal wrong has occurred, but where there was no actual financial loss or actual damage as a result of that legal wrong. Typically, when a nominal damage award is used, the plaintiff will be awarded $1 or $2. This may seem silly, but nominal damages serve an important purpose.

What are nominal damages?

When a plaintiff sues in court, he must have legal grounds for the lawsuit and he has to be seeking some remedy. The remedy he is seeking is usually monetary, except in rare cases where an “equitable remedy” like an injunction is sought. The monetary remedy is going to be based on the monetary losses he endured. For example, if Joe and Ann have a contract, Ann breaches and Joe suffers $1,000 losses in monetary damages as a result of Ann’s breach, the verdict may award Joe $1,000 in damages for costs because that was the amount of loss he suffered.

Sometimes, however, a person contacts an attorney and wants to sue but didn’t actually suffer any sort of tangible or actual loss. He still needs to seek a remedy, because courts can only hear cases where there is an actual controversy and some kind of relief is being sought. So, he may sue, the court may hear the case and decide for the plaintiff, and “nominal damages” that may be monetary compensation may be awarded.

Why would the plaintiff bother to do this? There are a number of reasons. Sometimes, he wants vindication that he was right. Sometimes, an award of nominal damages will also allow him to obtain punitive damages, which are damages designed to punish a defendant, rather than compensate a plaintiff. In other cases, the plaintiff may be suing because he is fighting for a cause, like if he believes his constitutional rights are being violated.

Case Studies: Understanding Nominal Damages

Case Study 1: Seeking Vindication and Punitive Damages

John filed a lawsuit against a company he believed violated his constitutional rights. Although he didn’t suffer any tangible financial losses, he wanted to vindicate his rights and obtain punitive damages to hold the company accountable for their actions.

John’s attorney pursued nominal damages in court, seeking a symbolic monetary award to establish that the legal wrong had occurred. With the court’s ruling in his favor, John’s case set a precedent, and he was also awarded punitive damages to punish the company for their misconduct.

Case Study 2: Fighting for a Cause

In a high-profile case, Sarah sued a large corporation for environmental violations in her community. While Sarah didn’t experience direct financial losses, she was passionate about fighting for her cause. Her attorney pursued nominal damages, emphasizing the importance of obtaining a legal remedy despite the absence of actual financial harm.

The court recognized the significance of Sarah’s case, and the nominal damages awarded helped her garner public attention and support for her cause.

Case Study 3: Establishing Actual Controversy

Michael contacted an attorney to sue his neighbor over a property dispute. Although the dispute didn’t involve substantial financial losses, Michael sought legal resolution to establish an actual controversy and protect his property rights.

His attorney presented the case in court, requesting nominal damages to demonstrate that a legal wrong had occurred. The court’s ruling in favor of Michael’s nominal damages claim provided him with the necessary legal standing to address the property dispute formally.

How can you get legal help?

Whatever the reason, suits for nominal damages can and do happen. If you believe that this may be something that could apply in your case, you will want to schedule a consultation with a lawyer for advice and guidance on how best to proceed.