On Wednesday, the U.S. Supreme Court cut Exxon-Mobil’s verdict FROM $2.5 BILLION to $500 MILLION.
In 1989 punitive damages of $2.5 BILLION were awarded against Exxon-Mobil over the Exxon Valdez disaster.
The court ruled that victims of the worst oil spill in U.S. history may collect punitive damages from Exxon Mobil Corp., but not as much as a federal appeals court determined.
Supreme Court Justice David Souter wrote for the court that punitive damages may not exceed what the company already paid to compensate victims for economic losses, about $500 million compensation.
Exxon asked the high court to reject the punitive damages judgment, saying it already has spent $3.4 billion in response to the accident that fouled 1,200 miles of Alaska coastline.
A jury decided Exxon should pay $5 billion in punitive damages. A federal appeals court cut that verdict in half.
The reason YOU and I should be happy is that those punitive damages amount to a “cost of doing business,” for Exxon-Mobil and that cost, as ALL such costs are passed onto the consumers – that includes YOU and I.
So far, I have the U.S. Supreme Court at two and two – they got two (nixing the D.C. gun ban and slashing the Exxon Valdez punitive damages) RIGHT, and two (giving foreign terrorists access to U.S. courts and nixing the death penalty for child rapists) WRONG.