Nominal damages refer to a minor sum of money awarded to a plaintiff in a lawsuit where a legal wrong or injury has been sustained, but the harm is minimal or unquantifiable. This small amount is typically a symbolic gesture to acknowledge that the plaintiff’s rights were violated, rather than to compensate for significant loss or injury.
Definition and Purpose
Nominal damages are awarded in situations where:
- A breach of contract occurs, but the actual financial loss is negligible or impossible to determine.
- An intentional tort is committed, recognizing the infringement of rights without substantial or measurable damages.
Legal Application
Breach of Contract
In the context of a breach of contract, nominal damages serve the purpose of upholding the terms of the agreement and illustrating that the defendant’s failure to comply with the contractual obligations is legally recognized.
For instance, if a seller fails to deliver goods as agreed, but the buyer incurs no actual monetary loss because substitute goods were available at the same price, nominal damages may still be awarded to affirm the buyer’s contractual rights.
Intentional Torts
In cases of intentional torts, such as trespass or defamation, the court may award nominal damages to conclusively affirm the plaintiff’s legal rights and the defendant’s wrongful conduct, even if no substantial harm occurred.
Historical Context
The concept of nominal damages has roots in common law principles, growing from the necessity of providing legal recognition to wronged parties without endorsing exaggerated compensation demands. It underscores the importance of the rule of law and the need to acknowledge legal wrongs, regardless of the tangible impact.
Comparisons and Related Terms
- Compensatory Damages: Unlike nominal damages, compensatory damages are intended to cover the actual loss suffered by the plaintiff due to the defendant’s actions.
- Punitive Damages: These are awarded over and above compensatory damages to punish the defendant for particularly egregious conduct and to deter similar future actions.
- Liquidated Damages: Pre-determined sums agreed upon in the contract to be paid in case of a breach, representing a fair estimation of the damages that would result.
FAQs
Q1: Can nominal damages influence future legal decisions?
Yes, awarding nominal damages establishes a legal precedent and upholds the principle that rights must be respected, potentially influencing similar future cases.
Q2: How much are nominal damages typically?
Nominal damages are usually a symbolic amount like one dollar or a small fixed sum, insufficient to constitute real compensation but sufficient to recognize a legal wrong.
Q3: Are nominal damages necessary for every legal wrong?
Not necessarily. Courts award nominal damages when they identify a legal wrong with no significant financial losses, serving mostly as a formal recognition of rights.
References
- “Contracts Law: Nominal Damages.” Legal Information Institute, Cornell Law School.
- O’Sullivan, Janet & Hilliard, Jonathan. “The Law of Contract.” Oxford University Press.
- Prosser, William & Keeton, W. Page. “The Law of Torts.” West Publishing Co.
Summary
Nominal damages play a critical role in the legal system by formally recognizing wrongful acts or breaches of contract, even when these wrongs do not result in substantial financial loss. This minor award serves to vindicate the rights of the plaintiff and uphold the principle of legal accountability, reinforcing the integrity of contractual and tort law.
