Supreme Court Slashes Punitive Award in Exxon Valdez Oil Spill by 80%
WASHINGTON - The Supreme Court on Wednesday dashed the hopes of more than 32,000 fishermen and Alaska Natives who've been waiting for nearly 20 years to hear whether Exxon Mobil Corp. must pay billions in punitive damages for its role in the 1989 Exxon Valdez oil spill.
In a victory for corporations seeking to limit big-dollar lawsuits, the court decided 5-3 to reduce the $2.5 billion punitive damages. The award was excessive, the justices wrote, and reduced it to $507.5 million. The original multibillion-dollar punitive damages had been awarded as punishment for the company's role in spilling 11 million gallons of oil into the pristine fishing waters of Alaska's Prince William Sound.
"The punitive damages award against Exxon was excessive as a matter of maritime common law," Justice David Souter wrote in the majority opinion. "In the circumstances of this case, the award should be limited to an amount equal to compensatory damages."
The 32,677 plaintiffs in the case have been waiting for their compensation since 1994, when a jury in Anchorage, Alaska, returned a $5 billion punitive-damages award against Exxon Mobil. The company has been appealing the verdict since then. In 2006, the 9th U.S. Circuit Court of Appeals cut the award to $2.5 billion. Exxon appealed that decision to the Supreme Court, which heard oral arguments in the case Feb. 27.
Business groups such as the American Petroleum Institute and the U.S. Chamber of Commerce had hoped that the Supreme Court would use the case as a way to curb large punitive damages against corporations.
Former Alaska governors, the current governor, the state's congressional delegation, supertanker captains, environmentalists, state lawmakers, Alaska Natives and experts in maritime law joined with the plaintiffs in asking that the Supreme Court uphold the $2.5 billion verdict.
The court in February had appeared sympathetic to Exxon's efforts to reduce the punitive damages award for its role in the spill, although at the time the justices didn't seem inclined to overturn the award. While they seemed to grapple with the size of the damages awarded, they also seemed to indicate that they thought Exxon failed to make a winning argument that it wasn't subject to punitive damages under maritime law.
Exxon based its appeal on an 1818 court decision that holds that ship owners aren't liable for punitive damages for the actions of their agents at sea unless they're complicit in their behavior.
Michael Doyle contributed to this article.
© 2008 McClatchy Newspapers
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48 Comments so far
Show AllOh, and the "award" each of those wronged is? Of course, no matter what the amount is, the company will hold the money even longer, perhaps to the very last minute before releasing it, for even more profit. It's done all the time when someone is "awarded" money for an accident. The awardee waits until the insurance company, bank, or other entity has received the maximum profit, even when the awardee is receiving dunning notices from everyone under the sun and is starving. Profit, profit, profit. It all needs to change.
B E O W U L F
¿ I'm not sure if that's you, or just a coyote I hear hollowing in the distance ?
¿ Perhaps you already know that I agree completely with you ?
Please read these two related postings :
__ 1. __ I now see how the problem is also the solution
__ 2. __ ¿ How does the neoCON "reality" get created ?
… to appreciate the absolute symmetry of what could be called the war of good and evil, but really is just the subtle positive feedback of large groups of humans creating the future that they deserve.
¿ Are we laughing yet ?
Namaste « Presence »
« We must be the change we wish to see in the world » — Gandhi
« There is a sufficiency in the world for man's need but not for man's greed » — Gandhi
« We adopt the means of nonviolence because our end is a community at peace with itself » — ML King
As always, face the facts or die from the consequences of your inabilities;
There are approximately 6000 majority owners of the worlds worst criminals, ie, the worlds largest corporations, scattered across the planet in easily located and accessed positions at any given time 24/7/365.
You want change?
Make some.
You want to send a message that will be heard?
Send one that matters.
The enemy is never going to submit to reason, or pathetic little deomnstrations (with permits, no less!)... are you all sleepwalking through your sorry excuses for lives?
The enemy will listen, and beg for the mercy they never give a seconds thought, when they see their own earned death right between the eyes.
Can you not recall the history of the world during your own lifetimes?
The time is now, the enemy is in plain view, and you are being mocked at every turn, for the enemy well recognizes that you cannot:
1. organize
2. plan
3. engage
4. make the hard choice (ie, sacrifice yourself as needed & required
in order for the truths you know to be sustained)
you do not now possess:
1. a division of federal powers
2. a justice department
3. a Constitution
4. a Bill of Rights
5. taxation with representation (of YOUR wishes)
6. a democracy
7. a free and honest voting system
YOU are the reason these things are so.
YOU are the reason 6,5 million innocent Iraqis are being tortured by deliberately contrived criminal assaults on their existences.
YOU are the reason the Israeli fascist regime openly can flount every UN statute, can openly butcher the innocent because they occupy their own lands (sound in any way familiar to you...?)
YOU are the reason 40 million+ of your own kith and kin are and will continue to die on the streets since they cannot afford basic health services...
YOU are the reason 40,000+ US citizen-consumers like YOU are now traumatized, cauterized, amputized, or just plain dead.
So yeah, tell me ALL about it, fellow "Americans".
What, oh what, I say oh WHAT, are we EVER going to do?
Every citizen has the right to own a firearm.
Make me laugh.
Rudyjo June 25th, 2008 8:45 pm.........Please tell me you are being facetious.
I believe the Supreme Court ruled according to the law, specifically maritime law - on a dollar per dollar basis. If we don't like the law as it is, perhaps we need legislation to change it, with respect to punitive damages.
As the Sun sets on another day of mass resignation to their fate, by the majority of the peasants on the planet called Earth-another travesty of justice is performed by the "your honors" to show the peasants why they are peasants.
We are the junkies that give the Exxons of the world their power over us. Bicycle, garden, walk, work at home, reuse, recycle. You'll save a fortune on Vasoline alone. The irony is that Vasoline is made from oil too.
http://www.rawstory.com/news/mochila/Report_sees_big_jump_in_energy_foss_06252008.html
I can't say I did not see this coming... Boycott Exxon/Mobile do your homework and stop spending your money on their products, services, subsidiaries, etc..
FUKKKING SHIT! A criminal conspiracy between the Supreme Court and Exxon to defraud the victims of what a jury of their peers decided was right. Incredible.
"Exxon based its appeal on an 1818 court decision that holds that ship owners aren't liable for punitive damages for the actions of their agents at sea unless they're complicit in their behavior."
So in other words... knowing that you have a drunkard at the helm of a potential super weapon... and you still give him the keys to drive... you're not responsible? All the profit and none of the consequences? This actually ENCOURAGES letting the drunkard be the captain- "it was his drinking problem, not ours." Plausible denial every time.
What happened to the original American laws that required corporations to be granted a charter by the community in order to operate... and when the corp failed to serve the public's interest that charter could be revoked? Finished. Out of business. Do not pass 'go'. Don't let the door hit you on the way out?
It appears as if Scalia's idea of "original intent" (that the Constitution is not a "living document" & must be strictly interpreted according to the letter, not the spirit of the law) carried the day. Thus, an 1818 law written when oil tankers were at best a futurists nightmare was applied in this case. A 28th Amendment where only natural persons and not corporations are entitled to 14th Amendment protections is vital as well.
If you are old enough you might recall the bill boards calling for the Impeachment of Earl Warren chief justice of scotus for calling for an end to segregated schools.
How about some new billboard?
pontificatinpapa
Oops, messed that up.
Dissenting: Stephen Breyer, John Paul Stevens, Ruth Ginsberg.
Samuel Alito didn't take part in the case because he owns Exxon stock.
Souter was in the majority.
Apologies..
pontificatinpapa
Dissenting: David Souter, John Paul Stevens, Ruth Ginsberg.
Samuel Alito didn't take part in the case because he owns Exxon stock.
The actual cost of this spill is hard to calculate. The fine with the punitive damages is not sufficient to cover actual costs. What is nature worth? What were the lives the families leading before the spill worth?
Oh Geeez! Someone better get out the giant jar of Vaseline because the Oil companies are Screwing Us Again, and this time the Supreme Court is Helping them !!
I dont sympathize with seal hunters--really--the fish and wildlife suffer the most in this as always, one group wants to exploit em as if its 10000 BC(but still have guns and tv sets, people are so selective in what traditions they want to keep) )and another group wants to exploit something else. Human business as usual.
One idea I just heard is if you have stocks in your savings check for Exxon and sell it
and put 45 cents of every dollar towards the people in Alaska. It may not be possible to fuck Exxon but you could send money out of Exxon to Alaska. Just have to get enough people to do it.
The only way to get the Oil companies is to find other means of fuel, that is NoN-Fossil fuels will hit the oil companies where it will Hurt!! How mamy of you are sick and tired of being jerked around by your kahoonas because we are So Damn dependent on One fuel source..OIL!! We need cars that are plug-ins, hydrogen, water, and anything else that doesn't use a drop of oil!! Otherwise, we will always be at the mercy of OPEC and the OIL Companies!! Furthermore, I think Congress should Close the ENRON Loophole which allows Speculators to avoid transparentcy, and artificially inflate the price of Oil. Just a few days ago on C-Span, a Professor from the University of Maryland testified in Congress stating that all Congress had to do was to change the regulation/law back to the way it was prior to Dec. 2000, and that would close the ENRON Loophole and the price of oil/gas would drop almost immediately by 25%-50%. Of course, most Republicans are against that! They first love is the Oil companies, their biggest campaign contributors. Instead, they should be putting the good of the American people first!
Now that they won't have to pay out that big fine,maybe they will lower their prices.
Come on now, nobodys really surprised by this, are we? It's John Roberts' court, after all - when it isn't Bush's.
I'm So Disgusted!! Exxon should have paid the Full Amount and More. Those greedy Bast--ds Don't take responsibility for the Destruction and Degregation they cause!! And now they want to drill off shore and in our national parks and Wildlife Refuges??!! NO WAY! Furthermore, drilling right now would NOT solve the problem, and we wouldn't see a drop of oil or relief at the pump for Years!!!! And then it would only be a penny or two. Certainly Not worth the Risk of environmental and destruction for both humans and wildlife! Moreover, the oil companies have leases they're not even drilling on. They are found it cheaper and more profitable for them to drill off shore, in Alaska. Yes..just more Profits for those dirty Bast--ds. We need a Democrat in the Whitehouse!!
Just remember who and from which political party gave us much of the current Court. November is coming - are we going to make the same mistake yet again and keep the GOP pond scum in office. At least when the Democrats screw us, they provide some KY jelly.
The Exxon-Valdez matter has been in litigation this long? Was I asleep under a rock somewhere?
Have they determined who won the 2004 World Series yet? (Oh, that's not decided in the justice system?)
Interesting: when the Supreme Court announced its ruling on the Guantanamo Bay detainee matter a couple of weeks ago, it was 5-4 and they disclosed how each of the justices voted.
I see mention of 5-3 here but who went whichaway and who went thataway and who was out to lunch? I'm reasonably sure that I'm not the only one who'd like to know.
Greg Palast has an article up regarding his investigations for the Native Americans in this case.
http://www.gregpalast.com/
Now the figure is down to $507 million thats a much easier figure to ignore or prevaricate about for another ten or so years.
The fact of their $52 BILLION profit so far this year is no reason why they should pay out any money for criminal malfeasance.
Sad,sad world.
glad that won't hurt the profits that much for the oil companies
Are you ready to stick it to the oil fasists yet? then start here...
http://www.waterpoweredcar.com/
"they" dont want you to see it. "they" want you dependent, like a heroine addict that just keeps coming back for more. Its time to end their little 'big' picnic and give it back to the people. The time for this technology is NOW. (accually the time would have been ten years ago) Its not too late-yet.
Three and a half weeks from now Exxon will have made another 2.5 million in profits as they do every 3.5 weeks.
As George Carlin once said
"It's one big fucking club and you aint in it."
So go fuck yourself Amerika.
I'll bet our SCROTUS would also turn their collective backs on the Corporate murder and maiming of the Bhopal victims - fascist values being what they are.
Geez, it must be because our corporations have "personhood" that the Supreme Court Justices took pity on them.
Musn't be to harsh on our fellow citizen, Exxon/Mobil, since the must have feelings, hopes, and humanity just like you and I.
Long Live Corporate Rule! Long Live our Corporate Justices!
The Supreme Court Jester`s definitely got this one wrong. It goes to prove it is survival of the richest.
We as a people must form a third party that will once and for all put some balance back to the system.
Asad day for Alaska and America.
The Supreme Court Jester`s definitely got this one wrong. It goes to prove it is survival of the richest.
We as a people must form a third party that will once and for all put some balance back to the system.
Asad day for Alaska and America.
The Supreme Court Jester`s definitely got this one wrong. It goes to prove it is survival of the richest.
We as a people must form a third party that will once and for all put some balance back to the system.
Asad day for Alaska and America.
Someday all nine of those so called judges will eat fish that has come from Alaska and I hope they choke on it. Grossly unfair. We really do live in a facsist state.
Except as to only a couple of aberrations, judging from the Supreme Court decisions that keep arriving, there are just two types of justices on the court -- the ethical, honest ones who honor the Bill of Rights more than their party ideology and the ones appointed by Bush.
No surprise here in the CSA (Corporate States of America).
Who's surprised that the powers that be ruled in favor of the corporations again? Just another glaring example of "WE the people" being screwed in favor of the multi-nationals. The government and the courts do NOT represent the interests of the people. Understand that! DO something about it!
They wont care until it is too late, something must happen soon or humanity fails.
While oil companies continue to make record profits in the multi-billions, the Supreme Court gives them a slap on the wrist with a puny settlement -- that ought to teach those oil companies a lesson. So much for the legal system. Tough luck for ordinary folks and the environment that have paid the price. Exxon-Mobil must be celebrating, and perhaps sending more money to the body politic in thanks for the court's support of big oil.
The worlds oceans and coastlines are being poisoned on a regular basis by oil tankers crossing the oceans. They most often go unreported, and when oil/gas spills are discovered in the open oceans, the oil companies do not confess or the oil rigs cover up/erase the evidence on their ships in order to avoid responsibility/fines, etc. These events are not isolated. But even isolated spills have disastrous and long-term effects on our environment.
Absolutely FUCKING REVOLTING. What a complete ABOMINATION of justice. The so-called "Supreme" Court is a bunch of corporate brown-nosers, nothing more, nothing less. It is a kangaroo court of Reagan-Bush appointed jackasses. I have no respect for them at all.
They rob from the poor, and from the environment and give to--Exxon!
...would you expect any other verdict from a Bush/Cheney government? From a Bush/Cheney "supreme" court? Of course not :(
Pathetic!!!!
Yea, we really need to be saving these oil scum money. Thanks supreme court.
" Life is tough"
If Exxon were a cookie manufacturer or toy or ANY other commodity producer, a boycott would make an impact.
Perhaps the "great wisdom" of the Supreme Court is speaking to the "people" in "code".
If such a commodity cannot be boycotted, then the only other avenue to prevent abuses of power, such as has been exhibited by Exxon, should be a legal system that is effective.
In the absence of this, then the people have no other choice but to "nationalize the commodity"--------------this could be the message the Supreme Court is sending.
Or it could be an invitation to take the only
obvious avenue.
Nationalize the Commodity that tends to abuse the people and the environment and act with impunity in the face of an obviously corrupted legal system. If nothing else, the others will make rapid changes to prevent the same fate .
If this sounds "tough"-----life is "tough", and survival is "tougher"
--------- " and only the tough survive"
What were ExxonMobil's profits for the first quarter of this year? Another arm of the govorporation wins & wins big.
Hey, this is "just" business -------- as usual!
Why we call clowns "your honor" makes no sense.
Non-story, no surprise. Sometimes, it doesn't matter who's in the White House or Congress, but who's in the courts.
Utterly predictable. The mandibles of the spider of Oligarchy are ABOVE the law, aka privilege as in private law. Kill us, eat us, roast us on a spit. All food for them. All nice and legal. They do whatever they want, we pay the bill, with our lives. It's our job, isn't it? BTW, we hung Germans at Nuremberg for acts that were perfectly Legal in their "System". They passed laws too and they had Judges to execute the wishes of the Reich. We didn't hang the Judges. Should have. Dirty animals. Just like ours.
Well there is no doubt who really owns our country and the courts. So what will the people of Alaska do?
A sad day in Alaska
A sad day for the world