Court Could Limit Exxon Valdez Damages - AP

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Source: Associated Press

Court Could Limit Exxon Valdez Damages

AP Wednesday February 27 2008

By MARK SHERMAN

Associated Press Writer

WASHINGTON (AP) - The Supreme Court seemed inclined
Wednesday to let Exxon Mobil Corp. off the hook for some
of the $2.5 billion the energy giant was ordered to pay
as punishment for a massive oil spill in Alaska nearly
19 years ago.

The justices questioned lawyers for the company and nearly
33,000 victims of the Exxon Valdez disaster for 90 minutes,
making only one passing reference to Exxon's record profits.
The award represents less than three weeks' worth of
Exxon profit, which was $11.7 billion in the last three
months of 2007.

-snip-

The problem for the people, businesses and governments
who waged the lengthy legal fight against Exxon is that the
Supreme Court in recent years has become more receptive
to limiting punitive damages awards. The Exxon Valdez case
differs from the others in that it involves issues peculiar
to laws governing accidents on the water.

But several justices said that limits could be appropriate
in this context too.

-snip-

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