Big oil friendly Supreme Court slashes Exxon Valdez damages. Alito recuses because he owns stock.

[dajoki]

Supreme Court overturns Exxon Valdez ruling
Decision cuts punitive damages to $500 million from $2.5 billion
updated 1 hour, 47 minutes ago
http://www.msnbc.msn.com/id/25367638/

WASHINGTON - The Supreme Court on Wednesday slashed the $2.5 billion punitive damages award in the 1989 Exxon Valdez disaster to $500 million.

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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.

Souter said a penalty should be “reasonably predictable” in its severity.

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The Supreme Court divided on its decision, 5-3, with Justice Samuel Alito taking no part in the case because he owns Exxon stock.

Exxon has fought vigorously to reduce or erase the punitive damages verdict by a jury in Alaska four years ago for the accident that dumped 11 million gallons of oil into Prince William Sound. The environmental disaster led to the deaths of hundreds of thousands of seabirds and marine animals.

Nearly 33,000 Alaskans are in line to share in the award, about $15,000 a person. They would have collected $75,000 each under the $2.5 billion judgment.

In dissent, Justice John Paul Stevens supported the $2.5 billion figure for punitive damages, saying Congress has chosen not to impose restrictions in such circumstances.

[uppityperson]

1. k&r, thanks for posting this. And oh bullshit. eom