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Right now the Supreme Court is arguing over whether or not Exxon should be forced to pay $2.5 billion in punitive damages, as approved by a federal appeals court. That’s the largest punitive damages award in American history, and would be in addition to the $3.4 billion in criminal fines, cleanup costs and compensation payments they’ve already paid.
The Exxon Valdez oil spill in Alaska covered 3,000 square miles and is still affecting Alaskan fisheries today – 19 years later. One of the challenges from Exxon in this case is the finding that Exxon can be held liable for the ship captain’s actions. According to Exxon’s lead attorney, this ruiling goes against 200 years of maritime law, where an owner can be liable only for actions that it directed, ratified or participated in.
However, Justice Ruth Bader Ginsburg disagrees, and has argued that Exxon is partially to blame for the accident, as company officials allowed the captain to work despite having been informed that he was an alcoholic and had been drinking. Other justices have sided with Exxon, including Anthony M. Kennedy , Antonin Scalia , and Chief Justice John G. Roberts Jr.
While the punitive damages awarded in this case are unusual for a maritime law case, the justices are limiting their review to questions of maritime law, and will not consider the constitutionality of the award.
What do you think? Should Exxon pay the additional $2.5 billion in punitive damages, or have they already paid enough? Leave us a comment and let us know.
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