Supreme Court Slashes Fine Against ExxonMobil In Valdez Suit

Submitted by Katie Palme on Thu, 2008-06-26 15:47.

The U.S. Supreme Court decided on Wednesday, according to the New York Times, to reduce the punitive damages against ExxonMobil stemming from the oil spill of the Exxon Valdez in 1989 to $507.5 million from the original $5 billion.

Eleven million gallons of crude oil were spilled into Prince William Sound.The 5-3 ruling stunned many Alaska residents, many of whom were displaced from lengthy careers in fishing and other coastal professions. They are now eligible for a meager $15,000 settlement -- which will also be taxed -- at a time when ExxonMobil is raking in hundreds of millions in profits.

However, the company may still be liable for the recklessness of the captain, whom Justice John Paul Stevens described as a "lapsed alcoholic."  

Alaska politicians roundly denounced the decision. "Today's ruling adds insult to injury to the fishermen, communities and Alaska natives who have been waiting nearly 20 years for proper compensation following the worst environmental disaster in our nation's history," Sens. Ted Stevens and Lisa Murkowski and Rep. Don Young, who are all Republicans, said in a joint statement.