Exxon Ordered to Pay $5 Billion in Punitive Damages for 1989 Valdez Oil Spill

A federal jury has handed down a verdict of $5 billion in punitive damages against Exxon Corporation for the devastating oil spill that occurred in 1989. The decision, while at the lower end of the damages sought, is a significant blow to the oil giant, which had argued that it should not be held liable for punitive damages due to its acceptance of responsibility for the spill and substantial cleanup efforts. The jury also ordered Captain Joseph Hazelwood, who was at the helm of the Exxon Valdez at the time of the spill, to pay $5,000 in punitive damages.

Key Takeaways:

• The punitive damages award of $5 billion is at the lower end of the estimated range of $5 billion to $20 billion sought by commercial fishermen, Alaska natives, and property owners.
• Exxon had argued that it should not be held liable for punitive damages due to its acceptance of responsibility for the spill and its substantial cleanup efforts, including the payment of over $2.5 billion.
• The company had also voluntarily paid out over $300 million in claims to parties directly affected by the spill and $1 billion to the Alaska and federal governments for restoration of Prince William Sound.
• The jury found Exxon and Captain Hazelwood liable for reckless behavior in the lead-up to the spill, which resulted in the release of 11 million gallons of oil into Prince William Sound.
• The jury's decision marks a significant victory for the plaintiffs and a major setback for Exxon, which has pledged to appeal the verdict.

Statistics:

• $5 billion: The amount of punitive damages awarded to the plaintiffs.
• $2.5 billion: The amount Exxon spent on cleanup efforts following the spill.
• $300 million: The amount Exxon voluntarily paid out in claims to parties affected by the spill.
• $1 billion: The amount Exxon paid to the Alaska and federal governments for restoration of Prince William Sound.
• 11 million gallons: The amount of oil released into Prince William Sound during the spill.
• 10,000: The number of commercial salmon and herring fishermen who were awarded compensation for spill-related losses.
• $286.8 million: The amount awarded to the fishermen in compensation.
• 12: The original number of jurors who began the trial.
• 11: The number of jurors remaining after one juror was dismissed.
• Sept. 14: The date Judge Holland denied Exxon's motion to halt the trial.

Sources:

• Anchorage Daily News, "Exxon Ordered to Pay $5 Billion in Punitive Damages," date unknown (exact date not available in the original text).
• Associated Press, "Exxon to Appeal $5 Billion Verdict in Valdez Oil Spill Case," date unknown (exact date not available in the original text).