Key Takeaways

  • Nominal damages recognize a legal wrong even when no substantial loss or injury occurred.
  • Reasons to pursue nominal damages include upholding rights, symbolic victories, or enabling claims for punitive damages.
  • Nominal damages in contracts can occur when no measurable loss exists but rights were breached.
  • Legal fee recovery with nominal damages may depend on state law and the type of claim.
  • Nominal vs. other damages: Unlike compensatory or punitive damages, nominal damages are symbolic.
  • Filing for nominal damages still requires proving a violation of legal rights, even without measurable harm.
  • Examples of nominal damages include civil rights violations where no economic loss occurred.

Nominal damages are awarded to a plaintiff in a case where the court decides that the plaintiff suffered a legal wrong but no real financial loss. By issuing such a ruling, the court recognizes that the defendant has breached the plaintiff's rights.

Although awards can vary depending on the case, a successful nominal damages claim usually results in the awarding of a token sum of $1. Some courts also include the cost of the lawsuit in the total nominal damages.

What Are Damages?

In tort cases, plaintiffs who have experienced injury, property damage, pain, or other losses resulting from the defendant's actions usually seek damages. However, to secure financial compensation, the plaintiff must present evidence to prove the loss. If the court decides that the evidence is convincing, it will award damages to the plaintiff.

Before damages can be awarded to a plaintiff in a civil case, the court must determine the dollar amount involved, which in legal terms is called the "actual damages." For example, Mike and Catherine had a contract worth $2,000, but Mike violated the contract. Catherine lost $2,000 as a result and can therefore seek $2,000 in actual damages.

How Nominal Damages Differ from Other Types of Damages

When courts award damages, they generally aim to compensate for losses suffered. However, nominal damages serve a different purpose — they acknowledge that a legal wrong has occurred even though no actual harm or loss can be proven. This distinguishes them from:

  • Compensatory Damages: Intended to reimburse actual losses, such as medical bills or lost income.
  • Punitive Damages: Meant to punish a defendant for particularly harmful behavior and deter future misconduct.
  • Liquidated Damages: Pre-agreed damages outlined in a contract for breach scenarios.
  • Statutory Damages: Specified by law regardless of actual loss (e.g., intellectual property violations).

Unlike these types, nominal damages typically involve token amounts (often $1) but carry significant symbolic weight​​.

Why Pursue a Nominal Damages Claim?

Courts will only hear cases from plaintiffs who believe they have experienced a legal wrong and are seeking some form of compensation. However, if the plaintiff can't prove the loss they incurred or the loss cannot be measured, they can still seek compensation by suing for nominal damages.

Due to the nature of some cases, there may be no actual damages or the amount may be extremely small. Additionally, if a plaintiff cannot present evidence to prove a legal wrongdoing on the defendant's part, the plaintiff has the option of seeking nominal damages.

Some of the main reasons why an individual may pursue a nominal damages claim include:

  • To prove that they were right
  • To enable the plaintiff to seek punitive damages against the defendant
  • To stand up for an important issue, such as the breaching of constitutional rights

An example of a case involving civil rights could be a woman who accuses a defendant of violating her right to freedom of speech. The court might rule in her favor, but since she experienced no financial loss, she would not receive nominal damages.

Although small sums of money are involved, nominal damages can have a big impact, such as the 1985 case between the United States Football League and the National Football League. The United States Football League won the case, and the court awarded the organization $1. The United States Football League ultimately received $3 because the antitrust laws used in the case automatically triple any damages awarded.

When Courts Award Nominal Damages

Nominal damages are awarded when:

  • A legal violation occurred, but no provable loss exists.
  • The breach of a right is important even without economic consequences (common in constitutional law cases).
  • The plaintiff seeks to maintain a record of being legally right, sometimes as a stepping-stone to additional relief like punitive damages.

Courts typically only grant nominal damages when the plaintiff establishes that the defendant's conduct violated a recognized legal right​​.

Contract Claims and Nominal Damages

The awarding of nominal damages in a contract claim is not very common. This is because these cases tend to include financial losses if a legal wrong has occurred. Other types of damages are awarded more frequently, including compensatory damages, liquidation damages, punitive damages, and restitution.

However, there are times when nominal damages can be crucial to a contract case. These may include:

  • Cases in which property values cannot be calculated
  • Cases involving both a contract claim and tort claim, which are referred to as mixed lawsuits
  • Cases in which the court finds the defendant has lied or deceived the plaintiff

Imagine that plaintiff A sues defendant B because the defendant failed to provide the insurance that was promised in a contract. Plaintiff A made alternative arrangements to guarantee that they were insured. The court could rule in favor of plaintiff A but would probably only award nominal damages because plaintiff A suffered no losses due to defendant B's actions.

Filing for Nominal Damages

To file for nominal damages:

  1. File a Complaint: Draft a civil complaint alleging that the defendant violated your legal rights.
  2. State the Claim Clearly: Indicate that while you suffered no measurable financial loss, you seek recognition of the legal wrong.
  3. Provide Evidence of the Violation: Although financial harm isn't necessary, you must still prove that the defendant breached a legal duty or right.
  4. Request Relief: Specifically ask for nominal damages within your complaint.

Even though the financial amount sought is small, plaintiffs must carefully document how the defendant's actions violated the law​.

Legal Fees

In some states, courts can include the costs of the lawsuit when awarding nominal damages. This is in spite of the fact that the Supreme Court ruled in a 1992 case that including legal fees may be unconstitutional due to the vast difference in cost between attorney fees and the token $1 usually awarded to the plaintiff. Some states use this decision to avoid including lawsuit costs as part of an award for nominal damages.

Examples of Nominal Damages Awards

Here are a few real-world examples of nominal damages:

  • Civil Rights Cases: Courts often award nominal damages to plaintiffs who prove that their constitutional rights (like freedom of speech) were violated, even if they suffered no financial injury.
  • Contract Breaches: If a service agreement was technically breached but caused no monetary loss, the court may award nominal damages to recognize the breach.
  • Property Law Cases: A property owner may receive nominal damages if someone trespassed but caused no actual damage​​​.

These awards may be small but can have important legal and emotional significance.

Frequently Asked Questions

  1. What is the purpose of awarding nominal damages?
    Nominal damages recognize that a legal right was violated, even if the plaintiff suffered no measurable financial loss.
  2. Can I recover attorney’s fees if I win nominal damages?
    In some cases and jurisdictions, yes, but courts may be reluctant due to the disproportion between fees and the $1 award.
  3. How much are nominal damages usually?
    Courts typically award a symbolic amount, often $1.
  4. Can nominal damages lead to punitive damages?
    Yes. Proving a violation through nominal damages may open the door for a court to also award punitive damages.
  5. Do I need to prove harm to win nominal damages?
    No, but you must prove that your legal rights were violated.

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