ExxonMobil's fines for Valdez Oil spill reduced by $1 billion

Chemical Engineering Progress, Jan 2003 by D'Aquino, Rita

Exxon Mobil Corp. (Irving, TX; www.exxonmobil.com) must pay $4 billion instead of $5 billion in punitive damages for the 1989 Exxon Valdez oil spill off the Alaskan coast, according to a decision made by the federal court in Anchorage last December.

The 9th U.S. Circuit Court of Appeals declared the $5 billion punitive damages award "excessive" in November 2001 and sent the case back to the Anchorage District Court with orders to reduce the award to an amount consistent with constitutional limits. Exxon Mobil had also filed a motion in the federal district court seeking a reduction in punitive damages to $25 million or $40 million at most, stating that the organization had already paid $300 million in damages, $2.2 billion in cleanup efforts and $1 billion in settlements with federal and state governments.