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King v. Brock

An award of nominal damages in a contract action is sufficient to confer prevailing party status under a contractual fee-shifting provision.

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We granted certiorari to the Court of Appeals in Brock v. King , 279 Ga. 335 629 SE2d 829 2006, to determine whether an award of nominal damages in a contract action is sufficient to confer “prevailing party” status under a contractual fee-shifting provision. We answer this inquiry in the affirmative. Brock sued King and others for breach of contract in connection with a real estate development project.1 The contract provided that the “prevailing party” in any litigation would be entitled to recover attorney fees and expenses. The jury found in defendants’ favor and awarded them attorney fees and expenses of litigation. Brock appealed and the Court of Appeals reversed, in part, finding that a charge on nominal damages should have been included in the jury charge because, without it, the jury may have been misled into thinking that Brock must prove actual damages to prevail. Id. at 340 3. On motion for reconsideration, the Court of Appeals went on to rule that a party who wins only nominal damages can still be deemed a “prevailing party.” Thereupon, defendants sought, and we granted, certiorari.

In Magnetic Resonance Plus v. Imaging Sys. Intl. , 273 Ga. 525 543 SE2d 32 2001, this Court held that if a party failed to obtain “at least some of the relief sought”, it could not be deemed the “prevailing party” under a contractual fee-shifting provision. Id. at 529. However, in that case, the plaintiff did not seek nominal damages. Thus, Magnetic Resonance sheds no light as to whether an award of nominal damages can confer “prevailing party” status.

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