Justices Cut Damages Award in Exxon Valdez Spill

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Justices Cut Damages Award in Exxon Valdez Spill

Published: June 26, 2008

WASHINGTON — The Supreme Court on Wednesday reduced what had once been a $5 billion punitive damages award against ExxonMobil to about $500 million. The ruling essentially concluded a legal saga that started when the Exxon Valdez, a supertanker, struck a reef and spilled 11 million gallons of crude oil into the Prince William Sound in Alaska in 1989.

The decision may have broad implications for limits on punitive damages generally. Punitive damages, which are meant to punish and deter, are imposed on top of compensatory damages, which aim to make plaintiffs whole.

Justice David H. Souter, writing for the majority in the 5-to-3 decision, said a ratio between the two sorts of damages of no more than one-to-one was generally appropriate, at least in maritime cases. Since Exxon has paid about $507 million to compensate more than 32,000 Native Alaskans, landowners and commercial fishermen, Justice Souter said, it should have to pay no more than that amount in punitive damages.

http://www.nytimes.com/2008/06/26/washington/25cnd-punitive.html?_r=1&partner=MYWAY&ei=5065&oref=slogin
 
That seems like a ridiculously small amount for a punitive award, given the revenue of the company and the magnitude of the crime.

$500 million probably isn't even what Exxon spends on office supplies and coffee.


I notice the court split on conservative-liberal fault lines. Business interests over the public interest, naturally.
 
Where's the justice in this?

The whole point of a punitive damage is to extract punishment on a company for flagrant and criminal business practices, and to send a message to other companies that they will pay a heavy price for criminal activities.

The reduction in the award isn't even going to be a speed bump to Exxon, given their size and revenue. Their stock price is up this morning.

This is what happens when you put Alitos, Scalias, and Roberstons on the SCOTUS. I hope those generally reliably republican alaskan fishermen who had their livelyhoods ruined are happy about voting conservative.
 
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