Exxon Valdez punitive damages cut by 80%

Reuters
June 25, 2008

The U.S. Supreme Court Wednesday overturned the $2.5-billion US in punitive damages that Exxon Mobil Corp. had been ordered to pay for the 1989 Exxon Valdez oil spill off Alaska.

America's high court ruled that the punitive damages should be limited to an amount equal to the compensatory damages of $507.5 million.
   
In the court's opinion, Justice David Souter concluded that the $2.5-billion in punitive damages was excessive under federal maritime law, and should be cut to the amount of actual harm.
   
The case involved about 32,000 commercial fishermen, Alaska natives, property owners and others harmed by the nation's worst tanker spill.
   
Soaring oil prices have propelled Exxon Mobil to previously unforeseen levels of profitability in recent years, posting earnings of $40.6 billion in 2007.
   
It took the company just under two days to bring in $2.5 billion in revenue during the first quarter of 2007.
   
The Exxon Valdez supertanker ran aground in Alaska's Prince William Sound in March 1989, spilling about 11 million gallons of crude oil.
   
The spill spread oil to more than 1,200 miles of coastline, closed fisheries and killed thousands of marine mammals and hundreds of thousands of sea birds.
   
A federal jury in Alaska awarded $5 billion in punitive damages in 1994. A federal judge later reduced the punitive damages to $4.5 billion, and the appeals court further cut it to $2.5 billion.

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