BOOKS & RESOURCES
- Ten Concepts Defendants in Punitive Damages Cases Need To Be Aware Of
- Ten Mistakes Plaintiff's Economists Make in Measuring Lost Earnings in Personal Injury Cases.
- Published Books
- Newsletters
- Published Articles
- The Economics of Punitive Damages
- Prohibition on Resale Price Maintenance Stuck Down
- Awards on Non-Physical Injuries are Taxable
- Important Recent Court Decisions
- Developments in Litigation Economics
- Mergers, Acquisitions and Corporate Restructurings
- Mergers, Acquisitions, and Corporate Restructurings, 4th Edition
- Mergers: What Can Go Wrong and How to Prevent It
- Mergers, Acquisitions and Corporate Restructurings (Chinese Edition)
- Mergers, Acquisitions and Corporate Restructurings (Russian Edition)
- Measuring Business Interruption Losses and Other Commercial Damages
- Measuring Commercial Damages
- Economic Expert Testimony: A Guide for Judges and Lawyers
- Readings in Mergers and Acquisitions
- Litigation Economics.
- Mergers and Acquisitions.
- Ten Mistakes Defendants Make in the Damages Part of Their Personal Injury Cases: An Economist's Perspective
- Punitive Damages: Only Specific, Not General, Deterrence for Punitive Damages Plus Defendant's Financial Condition at the Time of the Injury Not Just the Trial Can be Considered
- Federal: US Supreme Court Reduces Exxon Valdez Punitive Award
- Measuring Business Interruption Losses and Other Commercial Damages, 2nd Edition.
- Mergers, Acquisitions, and Corporate Restructurings, 5th Edition
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Federal: US Supreme Court Reduces Exxon Valdez Punitive Award
In June 2008 the US Supreme Court reduced the $2.5 billion punitive damages award, stemming from the 1989 environmental disaster caused by the oil spill released by the 1,000 foot tanker Exxon Valdez, to $500 million. While the court agreed that punitive damages could be collected, Justice David H. Souter, writing for the majority, determined that the amount of punitive damages should not exceed the $507.5 million in compensatory damages which Exxon had already paid to the plaintiffs. In doing so he, in effect, decided a punitive/compensatory multiple of approximately one. In reaching this decision the court recognized that it can apply more direction and discretion given that the Valdez case was governed by maritime common law. The court concluded that it could apply broader discretion in such cases as opposed to ruling on state court decisions and determining if they were so extreme that they stepped over the bounds of constitutionality. It is interesting to note that in prior rulings on punitive damages involving state decisions, the US Supreme Court advocated a punitive/compensatory multiple of no more than nine (“single digits”). In this case, where the court recognized it had more leeway, it lowered the multiplier that would be acceptable to one. The decision by the Supreme Court brings to an end a long and tortuous 13 year process that initially resulted in a federal jury award of $5 billion in punitive damages. The case was a class action filed on behalf of over thirty thousand fishermen and other interests. In 1994 the federal appeals court cut this amount in half. It is noteworthy to mention that Exxon has already paid $3.4 billion in clean-up costs and various other fines and penalties.
Joining Justice Souter in the majority 5-3 decision were Chief Justice John Roberts Jr., and Justices Antonin Scalia, Anthony Kennedy and Clarence Thomas. Dissenting were Justices Ruth Ginsberg, John Paul Stevens and Stephen Breyer. The minority dissenters took issue with what they believed was an overly restrictive punitive/compensatory multiplier. Justice Samuel Alito did not take part in the decision due to his ownership of Exxon stock.
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