Nominal damages

Definition

Nominal damages are a small monetary award granted by a court to a plaintiff in a legal case, recognizing that a legal wrong has occurred even though there was no substantial harm or loss suffered. This concept serves to affirm the plaintiff's rights and validate their claim, particularly in cases of intentional torts or breach of contract where actual damages may not be easily quantifiable. Nominal damages act as a symbolic gesture, often set at a minimal amount, such as one dollar, to signify that while the violation did not cause significant damage, the court acknowledges the breach or wrongful act.

5 Must Know Facts For Your Next Test

1. Nominal damages are often awarded in cases where the plaintiff proves that a legal right has been violated but cannot prove actual damages.
2. In intentional tort cases, nominal damages serve to affirm the wronged party's rights without requiring proof of significant harm.
3. The amount awarded for nominal damages is typically minimal, with courts sometimes setting it as low as $1.
4. Nominal damages can establish a legal precedent, allowing plaintiffs to seek further remedies like punitive damages if appropriate.
5. These damages emphasize the importance of upholding legal rights, regardless of whether the plaintiff suffered substantial losses.

Review Questions

• How do nominal damages function in cases of intentional torts and what purpose do they serve?
  • In cases of intentional torts, nominal damages acknowledge that a wrongful act occurred even if there were no actual losses suffered by the plaintiff. They serve to validate the plaintiff's claim and reinforce their legal rights. This recognition can be crucial in setting a precedent for potential punitive damages or further remedies, emphasizing the principle that violations of rights should not go unrecognized.
• Compare and contrast nominal damages with compensatory and punitive damages in terms of their purpose and application.
  • Nominal damages differ from compensatory and punitive damages primarily in their purpose. While compensatory damages aim to reimburse plaintiffs for actual losses and punitive damages seek to punish defendants for egregious behavior, nominal damages are symbolic awards recognizing that a legal wrong occurred without significant harm. They affirm the principle that violations of rights warrant recognition, even if they don't result in measurable damage.
• Evaluate how nominal damages might impact the strategy of both plaintiffs and defendants in a legal dispute involving breach of contract.
  • Nominal damages can significantly influence legal strategies in breach of contract disputes. For plaintiffs, seeking nominal damages can help establish that their contractual rights were violated, which may open the door to pursuing additional forms of relief like punitive damages. For defendants, understanding the possibility of nominal damage awards may encourage them to settle disputes amicably rather than risk being found liable for even minimal violations. This dynamic highlights how nominal damages play a crucial role in shaping litigation strategies and outcomes.

Related terms

compensatory damages: Monetary compensation awarded to a plaintiff for actual losses incurred due to a defendant's actions, intended to make the injured party 'whole' again.

punitive damages: Additional monetary compensation awarded to a plaintiff, beyond actual damages, intended to punish the defendant for particularly egregious behavior and deter similar actions in the future.

breach of contract: A violation of any of the agreed-upon terms and conditions of a binding contract, which can result in legal consequences and potential damages.