Supreme Court Takes On Exxon Valdez Case

Highest Court Agreed To Review $2.5 Billion In Punitive Damages For 1989 Oil Spill

(AP)  The Supreme Court on Monday agreed to decide whether Exxon Mobil Corp. should pay punitive damages in connection with the huge Exxon Valdez oil spill that fouled more than 1,200 miles of Alaskan coastline in 1989.

The high court stepped into the long-running battle over the $2.5 billion in damages that Exxon Mobil owes in the spillage of 11 million gallons of oil into Alaska's Prince William Sound, the worst oil spill in U.S. history.

The Exxon Valdez supertanker had run aground on a reef. A federal appeals court already had cut in half the $5 billion in damages awarded by a jury in 1994.

The justices said they would consider whether the company should have to pay any punitive damages at all. If the court decides some money is due, Exxon is arguing that $2.5 billion is excessive under laws governing shipping and prior high court decisions limiting punitive damages.

The damages were, by far, the largest ever approved by federal appeals judges, the company said in its brief to the court.

The case probably will be heard in the spring. The court's last ruling on punitive damages, in February, set aside a nearly $80 million judgment against Altria Group Inc.'s Philip Morris USA. The money was awarded to the widow of a smoker in Oregon.

Justice Samuel Alito, who owns between $100,000 and $250,000 in Exxon stock, recused himself from the case.

Exxon said it already has paid $3.4 billion in clean-up costs and other penalties resulting from the oil spill, which killed hundreds of thousands of seabirds and marine animals.

Lawyers for the plaintiffs, some of whom are deceased, said the damages award is "barely more than three weeks of Exxon's net profits." The plaintiffs still living include about 33,000 commercial fishermen, cannery workers, landowners, Native Alaskans, local governments and businesses.

The Irving, Texas-based oil company marshaled more than a dozen organizations ranging from groups of shippers to the U.S. Chamber of Commerce, to support its bid for Supreme Court review.

The company argued it should not be held responsible for the mistakes of the ship's captain, Captain Joseph Hazelwood, who violated clear company rules when the Exxon Valdez ran aground with 53 million gallons of crude oil in its hold on March 23, 1989.

The plaintiffs said Exxon knew Hazelwood had sought treatment for drinking, but had begun drinking again. "Exxon placed a relapsed alcoholic, who it knew was drinking aboard its ships, in command of an enormous vessel carrying toxic cargo across treacherous and resource-rich waters," they said.

The company has been battling the judgment for over a decade. The company has managed to get the award cut in half from the original $5 billion awarded in 1994 by an Anchorage jury in the class-action suit.

The 9th U.S. Circuit Court of Appeals reduced the punitive damages because, in part, the company tried to clean up the spill and didn't spill oil from the tanker Exxon Valdez deliberately.

The disaster prompted Congress in 1990 to pass a law banning single-hulled tankers like the Valdez from domestic waters by 2015.

The case is Exxon Shipping Co. v. Baker, 07-219.

[ianlou]

Jesus, Is the Hindenburg Disaster settlements still in the courts also!!

[jepysdad]

Just as Exxon blames a drunk sea captain for what is clearly corporate negligence, The Carlyle Group blames a few rogue clinicians for its 24 LifeCare hospital patient deaths post Hurricane Katrina. Carlye nears its purchase of huge nursing home provider Manor Care, so the parallel is timely. Who''s looking into it? Not many people.

http://peureport.blogspot.com/2007/10/is-carlyle-group-pulling-exxon-on.html

[taddles-2009]

"Justice Samuel Alito, who owns between $100,000 and $250,000 in Exxon stock, recused himself from the case."

LOL...perhaps the other "justices" could take a lesson in how not to be a corporate tool from Scalito...sad.

So, the useless 9 will drop the penalty for Exxon to nothing...good thing we have them there to safeguard the American corporation from the vicious assaults of the American citizen. Good going Supremes, you make sure those corporations don''t get taxed too much or fined too much when they kill us, God knows we can''t live without them.

[brianbwb-2009]

Lawyers like to agrue that a corporation should be afforded the same privileges as an individual.

If that is so, then they should also be required to bear the same responsibilities. Individuals are subject to capital punishment for the worst crimes, so corporations should be subject to a similar sanction for the worst corporate crimes.

Nationalize them. If a state can take a life, they should also be able to take a corporation.

[fairandbal]

Simply taking this case the Supreme court proves they are bought and paid for by corporate america. they should stay out of this and let the fine stand.

We have a government "Of, By and For the corporation". time to wake up folks!

[starleo146]

"The high court stepped into the long-running battle over the $2.5 billion in damages that Exxon Mobil owes in the spillage of 11 million gallons of oil into Alaska''''s Prince William Sound, the worst oil spill in U.S. history."


Last quarter, they made $38 billion dollars in profits. There are 13 weeks in a quarter so they made almost $3 billion dollars in each week. I hope I;m not supposed to feel sorry for them - because I curse them every time I pay $40+ dollars to fill my 14 gallon tank.

Posted by hungry1968 at 09:43 PM : Oct 29, 2007

Way to go Hungry loved it.

[starleo146]

Now that Bush Inc. has loaded the Supreme Court with GOP lemmings the only possible outcome will be a reversal and payment of 5 BILLION in favor of Exxon. Alaska will be forced to pay since they were negligent in allowing the reef to remain.

Posted by afmca

If that happens the right wing politics of AK could change but not till the last of the exploitative ghouls extract the last bit of wealth from AK.

Posted by l8c6 at 03:50 PM : Oct 29, 200

I lived in Alaska and it is the most beautiful place I have ever seen, and this oil company did so much damage, if they get away with this it will be just typical Bush, and a disgrace.

[omega39-2009]

Oh good, Bush''s newly minted "conservative" court is stepping in to legitimize "no oil company left behind"

[hungry1968]

"The high court stepped into the long-running battle over the $2.5 billion in damages that Exxon Mobil owes in the spillage of 11 million gallons of oil into Alaska''s Prince William Sound, the worst oil spill in U.S. history."


Last quarter, they made $38 billion dollars in profits. There are 13 weeks in a quarter so they made almost $3 billion dollars in each week. I hope I;m not supposed to feel sorry for them - because I curse them every time I pay $40+ dollars to fill my 14 gallon tank.

[starleo146]

Bushs'' Supreme court, Bushs'' oil corporation, yea they will be found guilty, like Blackwater will be found guilty, Why do you think Exxon stopped fighting and let Bushs'' Supreme Court decide? Joke! The case is so old I thought it was over already.