CNN Money has a report today indicating that the U.S. Supreme Court seemed inclined to reduce the punitive damages that were awarded against Exxon Mobil nearly 20 years ago, for the Exxon Valdez oil spill.
Exxon was assessed $2.5 billion in punitive damages. This is about $75,000 for each of the 33,000 plaintiffs, whose lives were "destroyed." The original award was $5 billion. The 9th Circuit Court of Appeals cut the award in half but let it stand otherwise. Exxon appealed the verdict, and they have been consistently fighting the damages despite promising to make Alaskans whole. The economic damages part of the award was $287 million.
The present Supreme Court has taken a solidly pro-business stance. However, one conservative justice, Samuel Alito, owns Exxon stock and has recused himself. A 4-4 verdict would let the Appeals Court verdict stand.
To be sure, the numbers being tossed around sound very large.
However, there is evidence that the environment has not recovered from the damage. Another CNN Money report details how the fishing industry has failed to recover. This affects livelihoods, and the tax base for the municipalities involved. It also affects a large number of Alaska Native residents for whom fishing is their livelihood, as well as commercial fishers. The report details tales of mental illness, substance abuse, divorce, and suicide in the wake of the spill. It wasn't just that someone spilled a bit of oil on someone's coast. Exxon Valdez spilled an immense amount of oil. Oil is toxic. It has destroyed livelihoods.
Exxon has in fact maintained that it shouldn't have to pay punitive damages at all. They have so far paid $3.4 billion in other fines, plus cleaning costs. However, the spill was so severe that they have not made the affected residents whole.
To eliminate or reduce the punitive damages award would be a blow to vulnerable Alaskans whose lives were destroyed by the spill. It would mean that America is letting criminals get away scot-free with her laws.
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It's going to take years to undo the damage that republicans have unleashed upon the Earth with pro-business legislation.
Personally I think the Supreme Court should re-instate the original $5,000,000,000 , as a shame award.
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