Understanding Nominal Damages: Definition and Purpose in Legal Disputes

Nominal damages

a token amount of money awarded by a court to a plaintiff to show that the claim was justified, even if the plaintiff is unable to prove economic harm

Nominal damages are a type of damages awarded by a court when a plaintiff proves that the defendant is liable for a breach of contract or a tort, but has not suffered any actual or significant damage or harm as a result of the defendant’s conduct. Nominal damages are typically a small amount of money, such as one dollar, that is awarded to the plaintiff to signify that their legal rights have been violated, but that no actual loss or injury has been incurred.

Nominal damages are most commonly awarded in cases where there has been a technical or minor violation of a legal right, but where there has been no significant loss or damage suffered by the plaintiff. For example, if a plaintiff sues a defendant for trespassing on their property but can’t prove any actual damage caused by the trespass, the court might award nominal damages as a symbolic or token compensation for the plaintiff.

Nominal damages are also used to clarify legal disputes or to settle matters of principle. They can be seen as an assertion of the principle that defendants who have wronged a plaintiff should not be allowed to escape without any consequences, even if those consequences are not financially significant. While nominal damages do not cover tangible losses, they can provide a plaintiff with a measure of satisfaction and vindication for their legal rights.

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