Nominal damages allow plaintiffs to attain legal remedies for wrongs that have not induced any financial loss. In the majority of torts cases, the claimant is looking to receive specific financial compensation for the wrongs committed. Nominal damages are usually offered in certain cases in which the damages cannot be reduced to a specific number.
For instance, if a claimant is receiving verbal threats of physical violence from her neighbor, she may decide to sue her neighbor for assault before these threats of violence manifest. She has not been harmed yet, but her neighbor has induced the fear of physical violence within her. There is no financial loss associated with this case, so the court cannot award the plaintiff typical financial damages.
However, the judge may decide that the plaintiff is entitled to nominal damages, affirming that the defendant was acting inappropriately. The judge may even impose punitive damages on her neighbor, a form of financial punishment which may require him to pay some sort of fine for his abhorrent behavior. Punitive damages often serve as a deterrent for others who may be tempted to commit acts like this that fall outside of the norm.
Cases concerning the infraction of civil rights often employ the usage of nominal damages to award plaintiffs looking for legal redress. For example, if a plaintiff can prove that his or her right to freedom of speech is being violated, he or she may be able to obtain nominal damages regardless of whether or not the violation caused him or her any financial loss. Many claimants seek nominal damages to set a solid foundation from which they can mount additional legal actions, while others may do so just so that the defendant’s actions are recorded. Depending on the state in which the case is heard, nominal damages may also include the cost of the plaintiff’s representation.
