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When most people think about suing for breach of contract, they assume there must be a financial loss to justify going to court. But what happens when a contract is clearly broken, yet no actual money is lost? In California, you can still take legal action—and that’s where nominal damages come in.
At Purdy & Bailey, LLP, we help business owners understand the full scope of their legal rights, including when they’ve been wronged in ways that don’t necessarily hit the bottom line. If you're considering litigation but aren’t sure whether your case qualifies, understanding nominal damages is a good place to start.
What Are Nominal Damages?
Nominal damages are a symbolic legal award—usually a very small sum, like one dollar—given to a party who proves a breach of contract occurred, even if no measurable financial harm was done. It may sound minor, but it can be powerful.
Courts award nominal damages when:
A valid contract existed
One party breached that contract
But the other party didn’t suffer a significant loss
This principle helps affirm that a wrong was done and upholds the enforceability of contracts, even in low-stakes situations.
Why Would You Sue for Nominal Damages?
So why go through the trouble of litigation if there’s no real money at stake? In many cases, it’s about principle, precedent, or prevention.
Principle: You entered into a legal agreement in good faith. Enforcing that agreement matters—even if it didn’t result in financial loss.
Precedent: Winning a nominal damages claim can establish a legal record that may help in future related disputes.
Prevention: It sends a clear message that breaches won’t go unchallenged, which can deter repeat behavior or further contract violations.
Nominal damages may also pave the way for other remedies, such as injunctive relief or specific performance, depending on the nature of the breach.
Is It Worth It?
The answer depends on your goals. If you’re looking for compensation, nominal damages won’t help much financially. But if you need to establish that the breach happened—or maintain the integrity of your contracts—it could be well worth pursuing.
Litigation always carries costs, so having an experienced business litigation attorney is crucial to weigh your options and make informed decisions.
How Purdy & Bailey, LLP Can Help
At Purdy & Bailey, LLP, we don’t just chase dollars—we help clients protect what matters most. Whether you're facing a breach of contract that caused financial harm or simply want to assert your rights and uphold an agreement, we’re here to guide you through every step of the process.
Contact us at (858) 360-7080 to speak with a San Diego business litigation attorney and learn whether pursuing nominal damages is the right move for your situation.