Key Takeaways

1. Nominal damages are a small, symbolic sum awarded by courts to acknowledge the violation of a plaintiff’s rights when no substantial harm or measurable loss has occurred.
2. Courts use nominal damages to vindicate legal rights and ensure that legal wrongs are recognized, even if no actual injury can be proven.
3. Nominal damages play an important role in upholding the rule of law, clarifying legal precedents, and may serve as a basis for awarding costs or further remedies.

Understanding Nominal Damages

What Are Nominal Damages?

Nominal damages represent a fundamental concept in civil litigation. They are awarded when a court determines that a legal right has been violated, but the plaintiff cannot prove any actual, quantifiable harm resulting from that violation. The sum awarded is generally very small—often just one dollar. The purpose is not to compensate for loss, but to affirm that the plaintiff's rights were infringed upon.

According to the Legal Information Institute at Cornell Law School, nominal damages “are awarded to commemorate the plaintiff’s vindication in court.” This symbolic function distinguishes nominal damages from other forms of damages, such as compensatory or punitive damages, which are intended to address actual harm or deter misconduct, respectively.

The Legal Definition

The Cambridge English Dictionary defines nominal damages as “a small amount that a court orders someone to pay to another person they have harmed, but without significant financial loss.” This definition captures the essence of nominal damages: they are not about financial compensation, but about the recognition of a legal wrong.

The Role of Nominal Damages in the Legal System

Nominal damages serve several critical purposes within the legal system:

• Vindication of Rights: By awarding nominal damages, courts recognize that a legal right has been violated, even if the violation did not result in substantial harm.
• Establishing Precedent: The award of nominal damages can set important legal precedents, clarifying the boundaries of lawful conduct.
• Access to Costs and Further Remedies: In some cases, the awarding of nominal damages enables plaintiffs to recover court costs or seek further remedies, such as injunctive relief.

The Ninth Circuit's Model Jury Instructions specify that nominal damages must be awarded when the plaintiff is not entitled to compensatory damages, such as when no actual injury is incurred. This ensures that the legal system recognizes violations of rights, even in the absence of proof of harm.

When Are Nominal Damages Awarded?

Common Scenarios

Nominal damages are typically awarded in situations where:

• The plaintiff's rights have been violated, but no actual, measurable harm can be demonstrated.
• The harm suffered is too trivial or speculative to warrant compensatory damages.
• The plaintiff is unable to provide sufficient evidence of actual damages.

Examples include:

• Trespass: A person enters another’s property without permission but causes no actual damage.
• Breach of Contract: A technical breach occurs, but the non-breaching party suffers no real loss.
• Civil Rights Violations: Constitutional rights are infringed, but the plaintiff cannot prove quantifiable harm.
• Assault Without Injury: The plaintiff is threatened or put in fear, but suffers no physical or psychological injury.

In each of these cases, the court may award nominal damages to formally acknowledge the violation of rights.

The Symbolic Value

The symbolic nature of nominal damages is significant. As explained in the George Mason Law Review, such awards allow the legal system to function as a “producer of reliable, reputation-relevant information.” In other words, the court’s acknowledgment of a legal wrong—even without substantial harm—serves to uphold the rule of law and maintain public confidence in the justice system.

Legal Significance and Implications

Vindication and Legal Standing

One of the primary functions of nominal damages is to vindicate the plaintiff’s legal rights. This is important because it affirms that the law recognizes and protects those rights, even when no tangible loss is involved.

For example, in cases involving breaches of fiduciary duty or constructive fraud, courts may award nominal damages when actual damages are not required or cannot be proven. The Supreme Court has recognized that nominal damages can be valuable in these cases, as they serve to affirm the plaintiff’s rights and the defendant’s wrongdoing.

Precedent and Future Claims

The award of nominal damages can have broader legal implications. It may:

• Establish Case Law: Court decisions awarding nominal damages can clarify the interpretation of statutes or constitutional provisions.
• Enable Further Remedies: In some jurisdictions, the award of nominal damages may allow the plaintiff to seek injunctive or declaratory relief, or to recover court costs.
• Affect Reputation: The finding of liability—even with only nominal damages—can have reputational consequences for the defendant.

Costs and Attorney’s Fees

While the amount of nominal damages is small, the award can sometimes have significant financial implications. For instance, in certain cases, the prevailing party may be entitled to recover court costs or even attorney’s fees, based on the formal recognition of their legal victory.

Nominal Damages vs. Other Types of Damages

Compensatory Damages

Compensatory damages are awarded to make the plaintiff “whole” by compensating for actual losses suffered. This is fundamentally different from nominal damages, which are awarded when no actual loss can be demonstrated.

Punitive Damages

Punitive damages are intended to punish the defendant for particularly egregious conduct and deter similar behavior in the future. Nominal damages, in contrast, serve a purely symbolic function and are not intended as punishment.

Statutory Damages

Some statutes provide for minimum damages to be awarded in certain cases, regardless of actual harm. While these may be nominal in amount, statutory damages are distinct from true nominal damages, as they are mandated by law rather than awarded at the court’s discretion.

Practical Examples

Civil Rights Cases

Nominal damages are especially common in civil rights litigation. For example, if a plaintiff’s First Amendment rights are violated by a government official, but the plaintiff cannot prove any actual harm, the court may award nominal damages to recognize the constitutional violation. This was underscored by the Supreme Court in Uzuegbunam v. Preczewski, 592 U.S. ___ (2021), where the Court held that a request for nominal damages satisfies the redressability requirement for standing in federal court.

Property and Contract Cases

In property law, if someone trespasses on another’s land without causing damage, the landowner may be awarded nominal damages. Similarly, in contract law, if one party breaches a contract but the other party suffers no financial loss, nominal damages may be awarded to formally acknowledge the breach.

The Value of Nominal Damages

More Than a Dollar

Although the monetary value of nominal damages is minimal, their legal and symbolic value can be substantial. They serve as a formal acknowledgment by the court that a legal wrong occurred. This can be important for:

• Setting Precedent: Establishing the legal boundaries of acceptable conduct.
• Future Litigation: Providing a foundation for additional claims or remedies.
• Public Record: Creating an official record of the violation.

Upholding the Rule of Law

By awarding nominal damages, courts reinforce the principle that every legal right deserves recognition and protection, regardless of the presence or absence of measurable harm. This helps maintain the integrity of the legal system and assures the public that the law will respond to every proven violation, however small.

Conclusion

Nominal damages play a vital role in the American legal system. They provide a mechanism for courts to recognize the violation of legal rights, even when those violations do not result in tangible harm. By affirming the plaintiff’s legal standing and the defendant’s liability, nominal damages help uphold the rule of law, clarify legal precedents, and sometimes open the door to further remedies. Their symbolic value underscores the importance of every legal right, no matter how seemingly minor the infraction.

For in-depth legal research, case law, and tailored legal insights, attorneys and legal professionals are encouraged to visit Counsel Stack.

Disclaimer: This guide provides a general overview of nominal damages and is not a substitute for professional legal advice. The law is nuanced and may vary by jurisdiction and specific circumstances. For advice on particular cases, please consult a qualified attorney.