ANCHORAGE, Alaska — A federal judge ordered Exxon Mobil Corp. to pay
about $6.75 billion on Wednesday to thousands of Alaskans affected
by the 1989 Exxon Valdez oil spill.
The ruling is the latest of several damage awards in the case over
the past decade: the result of successful appeals in federal court
by Exxon. The company plans to appeal again.
Wednesday's ruling by U.S. District Judge Russel Holland ordered
the Irving, Texas–based company to pay $4.5 billion in punitive
damages and about $2.25 billion in interest. The money is to go
to 32,000 fishers, Alaska Natives, landowners, small businesses,
and cities affected by the 11-million-gallon spill in Prince William
Sound.
"We have now closed the trial court doors for the last time
in this litigation after 15 years," said David Oesting, lead
attorney for those who sued. "We're definitely on track to
the end of the entire dispute."
The judge had been ordered by the 9th U.S. Circuit Court of Appeals
to reconsider the damages awarded in an earlier ruling in light
of a Supreme Court decision last year concerning punitive damages.
"This ruling flies in the face of the guidelines set by the
appeals court," company spokesman Tom Cirigliano said.
He said the 9th Circuit has twice vacated Holland's decisions in
the case.
Holland reduced the Exxon punitive damages award to $4 billion
a year ago after a three-judge panel of the 9th Circuit sent the
original $5 billion verdict back, saying it was excessive.
For his latest ruling, the judge was to consider a Supreme Court
decision last year involving a Utah traffic accident. The justices
ruled that a jury's award of $145 million to punish an insurance
company was grossly excessive when actual damages were $1 million.
The Supreme Court held that the ratio of punitive to actual damages
should not exceed 9-to-1.
Attorneys for both sides came up with different estimates for actual
damages from the Exxon spill, and both argued that the Supreme Court
decision supported their damage claims.
The spill occurred March 23, 1989, less than three hours after
the Exxon Valdez left the Alyeska Pipeline terminal. The ship grounded,
rupturing eight of its 11 cargo tanks and spewing some 10.8 million
gallons of crude oil into the sound.
An estimated 250,000 seabirds and thousands of marine mammals died
as a result of the spill, which contaminated more than 1,200 miles
of shoreline.
Lingering effects of the spill include declines in various marine
populations, as well as stunted growth in such species as pink salmon.
Source: Associated Press
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