Nominal Damages | Kinds | DAMAGES

CIVIL LAW > XII. DAMAGES > B. KINDS > 3. NOMINAL DAMAGES

Definition

Nominal damages are awarded to recognize and vindicate a plaintiff's legal right, which has been violated, even in the absence of substantial or actual harm. They are not intended to compensate for a loss but to affirm the existence of a legal right and the fact of its violation.

Legal Basis

The concept of nominal damages is provided for under Article 2221 of the Civil Code of the Philippines, which states:

"Nominal damages are adjudicated in order that a right of the plaintiff, which has been violated or invaded by the defendant, may be vindicated or recognized, and not for the purpose of indemnifying the plaintiff for any loss suffered by him."

Purpose

1. Recognition of a Right: Nominal damages are intended to assert and recognize that a legal right has been infringed.
2. Affirmation of Law: The award serves as a judicial declaration that the defendant acted in contravention of the plaintiff's rights.
3. Discouraging Future Violations: Although not punitive in nature, the award may dissuade the defendant and others from disregarding rights.

Characteristics

1. Minimal Amount: The amount awarded is generally symbolic, not substantial, reflecting that the primary goal is recognition rather than compensation.
2. Independent of Actual Injury: The award does not depend on whether or not the plaintiff suffered actual damages or harm.
3. Judicial Discretion: The determination of the amount lies largely within the court's discretion.

When Nominal Damages Are Awarded

Nominal damages are awarded in situations where:

1. Violation of a Legal Right Occurred: The plaintiff’s legal right was violated, but no actual, substantial, or material damage was proven.
2. Failure to Prove Extent of Damage: The plaintiff proves that harm occurred but is unable to establish the extent of the actual damages with reasonable certainty.
3. Absence of Compensatory Purpose: The claim is primarily to vindicate a right rather than to seek compensation.

Examples of cases where nominal damages may be awarded:

• Breach of contract where no actual monetary loss occurred.
• Trespass or encroachment on property without resulting in material harm.
• Libel or slander where no substantial injury to reputation is proven.
• Breach of statutory or constitutional rights without quantifiable loss.

Quantum of Nominal Damages

There is no fixed amount for nominal damages. Courts generally consider:

• The nature of the right violated.
• The circumstances of the case.
• The degree of the violation.

The amount is typically modest and symbolic, sufficient to vindicate the right without unjust enrichment.

Distinction from Other Kinds of Damages

1. Actual Damages: Compensate for proven pecuniary loss, unlike nominal damages, which recognize the violation of rights without proof of loss.
2. Moral Damages: Compensate for psychological or emotional suffering, which is not the aim of nominal damages.
3. Exemplary Damages: Punish the defendant for wrongful conduct, whereas nominal damages are not punitive.
4. Temperate Damages: Given when actual damages cannot be determined with certainty, unlike nominal damages, which are independent of actual harm.

Judicial Pronouncements

1. Cangco v. Manila Railroad Co., G.R. No. L-12191 (1918): The Supreme Court held that nominal damages are awarded to affirm the existence of a right and its violation, even if no actual damage is proven.

2. Development Bank of the Philippines v. Court of Appeals, G.R. No. L-52470 (1988): The Court explained that the award of nominal damages is proper when a legal right is violated, even in the absence of compensable injury.

3. Consolidated Bank and Trust Corporation v. Court of Appeals, G.R. No. L-45711 (1987): The Court reiterated that nominal damages serve to vindicate or recognize a right, not to compensate for actual loss.

Procedure for Claiming Nominal Damages

1. Allegation of a Right: The plaintiff must assert that a specific legal right was violated.
2. Evidence of Violation: While proof of actual damage is not required, the plaintiff must present evidence of the infringement of their legal right.
3. Judicial Discretion: The court determines whether the award of nominal damages is warranted and the appropriate amount.

Limitations

1. Not a Substitute for Proof of Actual Damages: If actual damages are alleged and not proven, courts will not automatically substitute nominal damages.
2. Not Compensatory or Punitive: Nominal damages cannot be used to penalize the defendant or to indemnify the plaintiff for losses not proven.
3. Subject to Judicial Scrutiny: The award of nominal damages is subject to appeal and review for abuse of discretion.

Practical Implications

• Nominal damages emphasize the importance of respecting legal rights, even in the absence of material injury.
• They ensure that violations of rights are not ignored simply because no monetary harm can be shown.

Conclusion

Nominal damages play a vital role in the legal system by asserting and protecting fundamental rights. They provide a means for the courts to declare that the law has been violated, ensuring the primacy of rights even when no financial loss occurs. Courts are entrusted with the discretion to award nominal damages judiciously to maintain fairness and uphold the dignity of the law.