U.S. Supreme Court will hear Exxon Valdez case
The U.S. Supreme Court said Monday it will review a punitive damage award against Exxon Mobil that grew out of the 1989 Exxon Valdez oil spill.
An Alaska federal jury awarded a $5 billion punitive damage award when the case was heard. but in December 2006, the Ninth Circuit Court of Appeals reduced the award to $2.5 billion.
The court said it would rule on several questions raised by Exxon in its appeal. These include:
* Whether punitive damages could be imposed under maritime law against a ship owner for the conduct of a ship’s master at sea, “absent a finding that the owner directed, countenanced or participated in that conduct.”
Joseph Hazelwood, the ship's captain, had left the bridge of the ship shortly before the tanker grounded, which Exxon said was a violation of its policy to have two officers present. Hazelwood was also alleged to have been reckless because he had been drinking, but Exxon said if he was impaired, that had violated the company’s policies.
* Whether a “judge-made federal maritime law” could add a punitive damage award that Exxon said was not provided for under the Clean Water Act.
* Whether the $2.5 billion punitive damages award was within the limits of federal maritime law. Exxon Mobil said the award is “larger than the total of all punitive damages awards affirmed by all federal appellate courts in our history.”
The case is expected to be heard in the spring.
U.S. Supreme Court will hear Exxon Valdez case
