VocabuLaw

Nominal Damages

What is it and what does it mean?

Description of the legal term Nominal Damages:

Nominal damages are a type of legal remedy awarded by a court when a legal wrong has occurred, but where the harm caused is minimal or cannot be quantified in monetary terms. They are symbolic and are often a small, token amount of money, such as one pound. The award of nominal damages is primarily an acknowledgment that a plaintiff’s rights have been infringed, even though no actual or substantial harm has resulted from the defendant’s action or inaction.

The principle behind nominal damages lies in the recognition of a breach of rights or a legal duty owed, rather than in compensating the claimant for any loss suffered. It serves to vindicate the claimant’s legal right and to formally record the wrongfulness of the defendant’s conduct. Furthermore, the awarding of such damages may be important for judicial precedent, ensuring that the legal right in question is firmly established for future cases.

In specific areas of law such as contract or tort, the award for nominal damages can act as a gateway to other remedies. For instance, in contract law, it may allow for the enforcement of specific performance or an injunction, on the basis that a breach has been recognized by the court.

The British legal system bestows nominal damages when there are legal wrongs with no financial loss, but it is vital to note that while damages are nominal, they still serve a critical role in the rule of law; they convey the clear message that a right has been infringed and that the judiciary supports the maintenance of that right.

Legal context in which the term Nominal Damages may be used:

Imagine a case where a homeowner has a covenant on their property which says that no structures are to be built on a neighboring land without their permission. The neighbor violates this by building a small shed. Although the presence of the shed does not cause the homeowner any real inconvenience or financial loss, they decide to take legal action to assert their rights. The court finds in favor of the homeowner, recognizing that the covenant constitutes a legal right which has been infringed upon by the neighbor’s action. However, since no real damage was suffered, the court may not award substantial damages. Instead, the court may choose to award a nominal amount, such as one pound, which serves to uphold the homeowner’s legal right while acknowledging the absence of any significant harm or loss.

Another example centers on copyright law. An artist discovers that their work has been reproduced without consent, but the reproduction has not resulted in any profit for the infringer, nor any financial loss to the artist. The artist decides to sue for copyright infringement. Although the infringing party did not gain financially from their action, the fact remains that the artist’s exclusive rights to their work were violated. In this case, the court may again opt to award a nominal sum, affirming that an infringement has indeed taken place and that the artist’s rights are protected under law.

In the United Kingdom, the concept and application of such damages reflect the commitment to the rule of law and the protection of individual rights. They emphasize the importance of the recognition and enforcement of legal rights, irrespective of the presence or extent of actual harm or loss. This helps to ensure that the law not only serves to compensate individuals for loss but also functions to uphold and reinforce rights and legal duties within society.

This website is for informational purposes only and may contain inaccuracies. It should not be used as a substitute for professional legal advice.