Supreme Court to hear Exxon spill case

It's been almost 19 years since the tanker Exxon Valdez ran aground at Alaska's Bligh Reef, spurting 11 million gallons of crude into the rich fishing waters of Prince William Sound. In 1994, an Anchorage jury awarded victims $5 billion in punitive damages. That amount has since been cut in half by other courts on appeals by Exxon Mobil Corp.

Now the town of 2,200 looks anxiously to the U.S. Supreme Court, which will hear arguments Wednesday from Exxon on why the company should not have to pay punitive damages at all.

Scores of Cordova residents are among almost 33,000 plaintiffs — including commercial fishermen, Alaska Natives, landowners, businesses and local governments — who could see the $2.5 billion judgment taken away by the high court.

http://news.yahoo.com/s/ap/20080225/...s_exxon_valdez

Originally Posted by HOMELESS CAMEL

It's been almost 19 years since the tanker Exxon Valdez ran aground at Alaska's Bligh Reef, spurting 11 million gallons of crude into the rich fishing waters of Prince William Sound. In 1994, an Anchorage jury awarded victims $5 billion in punitive damages. That amount has since been cut in half by other courts on appeals by Exxon Mobil Corp.

Now the town of 2,200 looks anxiously to the U.S. Supreme Court, which will hear arguments Wednesday from Exxon on why the company should not have to pay punitive damages at all.

Scores of Cordova residents are among almost 33,000 plaintiffs — including commercial fishermen, Alaska Natives, landowners, businesses and local governments — who could see the $2.5 billion judgment taken away by the high court.

http://news.yahoo.com/s/ap/20080225/...s_exxon_valdez

I just don't see how the company could not be held accountable for the destruction that occurred.

Originally Posted by Superfan

I just don't see how the company could not be held accountable for the destruction that occurred.

They have been. Exxon has already paid out $3.5 billion in cleanup costs and private compensation to local residents and their businesses. This $2.5 billion in punitive damages essentially serves as punishment for irresponsible and reprehensible behavior.

So what is this case even about if the company has already pain $3.5 billion? The residents want them to disperce $2.5 billion between 2,200 people? What does that come out to for each person??? Somebody is gonna be RICH!

BTW- I could have read this case wrong

Originally Posted by rockcastleraiders

So what is this case even about if the company has already pain $3.5 billion? The residents want them to disperce $2.5 billion between 2,200 people? What does that come out to for each person??? Somebody is gonna be RICH!

BTW- I could have read this case wrong

Punitive damages are designed to punish the wrongdoer for malice or recklessness. But they don't want to give the plaintiffs more money than they lost at the risk of giving them an enrichment they don't deserve, so typically the majority of these moneys will go to some sort of government-operated fund or trust... I think. Without knowing anything about the law in this area, I'd guess that the punitive damages would go to some sort of wildlife or environmental protection trust.

Originally Posted by Getslow

Punitive damages are designed to punish the wrongdoer for malice or recklessness. But they don't want to give the plaintiffs more money than they lost at the risk of giving them an enrichment they don't deserve, so typically the majority of these moneys will go to some sort of government-operated fund or trust... I think. Without knowing anything about the law in this area, I'd guess that the punitive damages would go to some sort of wildlife or environmental protection trust.

Okay, thanks for the clarification.