Legal Definitions - absque injuria damnum

Absque injuria damnum is a Latin legal principle that describes a situation where a person experiences harm or loss (damnum) but that harm does not arise from a violation of their legal rights or a breach of a legal duty owed to them (injuria). In essence, it means "damage without legal wrong." When this principle applies, even though someone has suffered a detriment, they generally do not have a legal claim for compensation because no one has acted unlawfully or breached a legal obligation that caused the harm.

Here are some examples to illustrate this concept:

• Example 1: Business Competition

  A long-standing local bakery, known for its artisanal breads, experiences a significant drop in sales and eventually has to close its doors after a large, national supermarket chain opens a new store nearby. The supermarket offers a wide variety of baked goods, including some at lower prices, attracting many of the bakery's former customers.

  Explanation: The local bakery suffered substantial financial harm (damnum) due to the increased competition and loss of customers. However, the national supermarket chain acted entirely within its legal rights by opening a new business and competing fairly on price and selection. There was no legal wrong (injuria) committed by the supermarket against the local bakery, even though the local bakery was harmed. Therefore, the local bakery would have no legal basis to sue the national chain for its losses.

• Example 2: Property Value Decline from Lawful Development

  A homeowner's property value decreases significantly after a new, legally permitted wind farm is constructed several miles away. While the wind farm operates within all noise and environmental regulations and does not directly trespass on or pollute the homeowner's land, its visual impact and the perceived change in the rural character of the area make the neighborhood less desirable to potential buyers, leading to a drop in property prices.

  Explanation: The homeowner experienced financial harm (damnum) due to the reduced market value of their property. However, the construction and operation of the wind farm were entirely lawful and complied with all zoning and environmental regulations. No legal right of the homeowner was violated, nor was any legal duty breached by the wind farm's operators or the permitting authorities (injuria). Consequently, the homeowner would not have a legal claim for compensation for the loss in property value.

• Example 3: Investment Losses in a Fair Market

  An individual invests a substantial amount of money in a startup technology company's stock, believing it has high growth potential. Due to a sudden shift in consumer preferences and a new, more innovative competitor entering the market, the startup's product becomes obsolete, its stock value plummets, and the individual loses a significant portion of their investment.

  Explanation: The investor suffered a clear financial loss (damnum). However, assuming the startup company did not engage in fraud, misrepresentation, or insider trading, and the market operated fairly, no legal wrong (injuria) was committed by the company or any other party. The loss was a result of inherent market risks and business competition that the investor knowingly undertook. Therefore, the investor would have no legal recourse to recover their losses from the company or any other entity.