Understanding Nominal Damages: Definition And Examples

Nominal damages are a small, symbolic amount of money awarded in legal cases where a plaintiff’s rights have been violated, but no substantial harm or financial loss has occurred. These damages can appear in various cases, including civil rights, property disputes, and breach of contract. According to the Bureau of Justice Statistics, only 3% of these cases make it to court, with the majority settled beforehand. This illustrates the importance of understanding nominal damages, as they play a crucial role in recognizing legal rights violations, even if a case doesn’t proceed to trial.

In this article, we’ll explain the purpose of nominal damages, the criteria and legal standards necessary to pursue them, notable case examples, and jurisdictional differences. You’ll also receive practical advice on the steps to take when seeking nominal damages, alongside tips for locating a qualified attorney to handle your case. 

Whether you’re directly involved in a legal dispute or simply seeking to understand your rights better, this article provides comprehensive insights into the concept of nominal damages and their significance in the judicial environment.

What Are Nominal Damages?

Nominal damages are a small, symbolic sum awarded to a plaintiff in a lawsuit when a legal wrong has occurred with no substantial injury or loss resulting from the wrongdoing. Unlike compensatory or punitive damages, nominal damages serve to acknowledge that the plaintiff’s rights were violated rather than to provide monetary compensation or punish the defendant. 

Nominal damages over time

The legal concept of nominal damages is rooted in common law, evolving as part of the legal system in England and later in the United States. Historically, nominal damages emerged to provide a legal remedy in cases where proving actual damages was difficult or impossible, yet a legal wrong had undeniably occurred. This allowed courts to acknowledge the violation and maintain the integrity of the legal system by ensuring that even minor breaches didn’t go unaddressed. 

Over time, the role of nominal damages has been solidified in various legal doctrines and precedents. For example, in the landmark case of Ashby v. White (1703), the court awarded nominal damages to a voter who was wrongfully prevented from voting despite experiencing no measurable loss. 

Today, nominal damages are common in civil rights, constitutional law, and property dispute cases. 

The Purpose of Nominal Damages

Nominal damages serve two primary purposes:

1. They acknowledge that a defendant has violated the plaintiff’s legal rights, even if the plaintiff didn’t suffer a substantial loss or injury. 

2. By awarding nominal damages, the court affirms that the plaintiff’s rights were indeed violated. This affirmation is crucial in cases where the breach of rights could otherwise go unaddressed because there was no significant harm.

Legal rationale behind awarding nominal damages

The legal rationale for awarding nominal damages is grounded in several key principles, including:

• Vindication of Rights: Even when no substantial harm is demonstrated, nominal damages formally acknowledge that a legal right was violated, thereby vindicating the plaintiff’s rights.

• Deterrence of Future Violations: Awarding nominal damages can serve as a deterrent function by signaling that any violation of legal rights, regardless of the extent of harm, will not be overlooked. 

• Setting a Precedent: Nominal damages help maintain consistency and predictability in the legal system by establishing that rights violations will be recognized, reinforcing the integrity of legal processes. 

What Are the Legal Requirements for Nominal Damages?

The criteria for awarding nominal damages is twofold and typically includes both:

1. Proof of a Legal Wrong or Breach of Duty: To be eligible for nominal damages, the plaintiff must demonstrate that the defendant committed a legal wrong or breached a duty owed to the plaintiff. 

2. Lack of Substantial Harm or Financial Loss: Nominal damages are awarded when the plaintiff has not suffered substantial harm or financial loss due to the defendant’s actions. As mentioned earlier, the primary purpose is to recognize the violation rather than compensate for damages. 

Standards of proof required in nominal damages cases

The standards of proof required for awarding nominal damages are generally consistent with those applied in other civil cases, with some specific considerations:

1. Preponderance of Evidence: The plaintiff must prove by a preponderance of the evidence that a legal wrong or breach of duty occurred, meaning that it’s more likely than not that the defendant violated the plaintiff’s legal rights.

2. Existence of a Right or Duty: The plaintiff must establish that they had a legal right or that the defendant owed them a duty. This might involve showing the existence of a breached contract or law. 

3. Demonstration of Violation: The plaintiff must demonstrate that the defendant’s actions violated the right or duty. This could involve providing evidence of specific actions or omissions by the defendant that breached the legal obligation.

4. Absence of Significant Damage: Unlike in cases seeking compensatory damages, the plaintiff doesn’t need to prove significant damage or financial loss. It’s sufficient to show that a legal wrong occurred, even if it resulted in no substantial harm.

Legal Examples of Nominal Damages

Breach of Contract: Stevenson v. Dunn (2023)

The case of Stevenson v. Dunn (2023), decided by the Ohio Court of Appeals, involved a dispute over payment and unfinished work. Stevenson hired Dunn for a job, paying him $180 upfront, but Dunn failed to return to the job site and complete the work. Stevenson filed a small claims action seeking the return of her payment. 

While there was never a formal contract, there was evidence of the work Dunn had agreed to perform for the amount offered. The court recognized the contractual agreement and found that Dunn breached it by not completing the job, which led to the awarding of nominal damages to Stevenson for the breach.

Civil Rights: Carey v. Piphus (1978)

Carey v. Piphus (1978) is a significant U.S. Supreme Court case that addressed the issue of nominal damages in the context of procedural due process violations under the Fourteenth Amendment. The plaintiffs, students suspended from school without a hearing, sought damages for violating their due process rights. 

The Court ruled that a due process violation occurred with no proof of injury. The plaintiffs were entitled to nominal damages to recognize the violation of their rights. This case established that constitutional rights violations warrant judicial recognition without substantial harm. 

Property Dispute: Muirhead v. Vaughn (2004)

Muirhead v. Vaughn (2004) is a case from the Court of Appeals of Mississippi. William and Ruby Faye Muirhead filed a lawsuit against Tracy Vaughn, Brad Vaughn, and Bowman Timber Co., Inc. for cutting down trees on their property without permission. 

Initially, the chancellor didn’t award damages, but on appeal, the court found that the chancellor misinterpreted the relevant statute, Mississippi Code Annotated § 95-5-10. The appellate court reversed and remanded to reconsider damages and attorney’s fees, emphasizing the statutory provisions for unauthorized tree cutting. 

While nominal damages weren’t awarded in this case, it still shows how they were ultimately decided against, with another form of damages being awarded instead.

The Impact of Nominal Damages on Legal Claims

Nominal damages symbolize that the plaintiff’s legal rights were violated, which is crucial for those seeking validation of their claims – even without significant monetary compensation. For some, nominal damages can have a considerable moral and psychological impact, as they affirm that their grievance was legitimate and recognized by the court, providing a sense of justice and closure. 

Role in setting legal precedents

Although symbolic recognition can be helpful to plaintiffs in many ways, it’s crucial to remember that nominal damages go beyond this by setting legal precedents. Courts establish principles that guide future cases by formally recognizing a legal wrong, thereby influencing how similar legal issues are interpreted and adjudicated.

Additionally, awarding nominal damages contributes to the development of legal interpretations. Court decisions in these cases help clarify the boundaries and applications of legal rights and duties, shaping the broader legal framework. 

Of course, there’s also the deterrent effect. Although nominal damages aren’t punitive, their acknowledgment of a legal wrong can deter potential violators by emphasizing that all rights breaches, regardless of the harm caused, are subject to judicial scrutiny.

Nominal Damages Differ by Jurisdiction

The application and thresholds for awarding nominal damages can vary significantly across different jurisdictions within a single country and internationally. Local laws, judicial precedents, and the broader legal traditions of each jurisdiction influence these variations. 

United States

The concept of nominal damages is widely recognized in the United States, but the specifics can vary by state. For example, in California, nominal damages are often awarded in breach of contract cases when there’s no substantial loss. California Civil Code Section 3360 states, “When a breach of duty has caused no appreciable detriment to the party affected, he may yet recover nominal damages.” 

Meanwhile, Illinois law also allows for nominal damages, particularly in cases involving constitutional rights violations. The landmark Supreme Court case of Carey v. Piphus (1978) established that plaintiffs could receive nominal damages for violations of their own civil rights, even without proof of actual injury.

United Kingdom

UK law allows for nominal damages in defamation cases where the plaintiff’s reputation is technically harmed, but no substantial damage is proven. In the case of John v. MGN Ltd (1996), Elton John was awarded nominal damages as the court recognized the defamatory nature of the publication without considerable harm to his reputation.

How To Pursue Nominal Damages

Pursuing nominal damages can feel daunting, but having a qualified attorney on your side can make a significant difference. An experienced attorney can navigate the complexities of the legal system on your behalf, ensure proper procedure, and improve your chances of a favorable outcome.

1. Gather evidence and documentation

Collect all relevant evidence that supports your claim of a legal wrong or breach of duty. This could include things like the following, along with any other documentation that illustrates the defendant’s actions:

• Contracts

• Emails 

• Photographs

• Witness statements 

Be sure to keep detailed records of all communications and actions related to the case, as this can significantly strengthen your position.

2. File a complaint

Before filing, consult with an attorney to assess your claim's viability and draft the complaint. The complaint should clearly state the following:

• Facts of the case

• Legal basis for the claim

• The relief soft, including nominal damages

Submit the complaint to the appropriate court, paying any required filing fees.

3. Begin the discovery process

During the discovery process, both parties will exchange relevant information and evidence. You may need to participate in depositions and respond to interrogatories to gather additional evidence and build your case. 

This would also be the time to identify and prepare expert witnesses who can provide testimony to support your claim.

4. Prepare for trial

Some cases may settle before this stage, never seeing a formal trial. However, if settling proves impossible, a trial will likely result. Depending on case specifics, this may involve: 

• Filing pretrial motions

• Developing a trial strategy with your attorney

• Preparing your witnesses for testimony

Finding an attorney

You’ll want a qualified attorney experienced in pursuing nominal damages in your corner, but locating a legal professional who can help may be difficult. Fortunately, Expertise.com offers an easily accessible directory of top-rated attorneys, searchable by metro area. Focus your search on attorneys specializing in the relevant area of law, such as contract law, civil rights, or personal injury. From there, schedule initial consultations with multiple attorneys to discuss your case, gauge their experience, and determine if they fit your needs well.

If you prefer a more personalized approach, contact our concierge service to directly connect with an attorney who can help with your situation.

Nominal Damages FAQs

• Is there a difference between nominal damages and actual damages?
• Is there a cap on nominal damages?
• What’s the difference between nominal damages and punitive damages?
• Is it true that nominal damages are rarely awarded in breach of contract cases?
• When are nominal damages awarded in the court process? How long does it take to receive the money?
• Are nominal damages usually small amounts of money?