Sheikh Hânî al-Jubayr, judge at the Jeddah Supreme Court
The majority of scholars have traditionally not deemed it permissible for someone to be awarded monetary compensation against slandering or the like. They only permit the punishment of the perpetrator. However, there are some contemporary scholars who permit compensation for both physical and abstract injuries.
Their arguments are derived from the following texts:
One of the Companions, `Ulba b. Zayid, wanted to give charity but has nothing to give, so he decided to forgive anyone who may slander him. The Prophet (peace be upon him) accepted that from him saying: “Be glad, for it has been recorded as accepted charity.” [Authentic hadith as mentioned in al-Isâbah by Ibn Hajr (2/493)]. In this story, the Prophet (peace be upon him) considered the forgiving of slander as a charity.
The same thing is understood from the hadîth in which the Prophet (peace be upon him) said: “O Lord! Any Muslim I have insulted or derided, make it for him as prayer and charity to his credit.” [Sahîh al-Bukhârî and Sahîh Muslim]
Therefore, if someone received a ruling for compensation, I hold the opinion it is permissible for him to accept it. This is in consideration of the slandered person’s recognized rights and his ability to waive them, and also in consideration of the evidence stated above.
And Allah knows best.
Source: Islam Today