Judge orders Exxon Mobil to pay $7B

Rachel D’Oro

The Associated Press

A federal judge in Anchorage on Jan. 28 ordered Exxon Mobil Corp. to pay nearly $7 billion in punitive damages and interest to thousands of fishermen and others affected by the 1989 Exxon Valdez oil spill.

“We have now closed the trial court doors for the last time in this litigation after 15 years,” said David Oesting, lead attorney for the plaintiffs. “We’re definitely on track to the end of the entire dispute.”

In the Jan. 28 ruling, U.S. District Judge Russel Holland ordered Exxon Mobil to pay $4.5 billion in punitive damages and about $2.25 billion in interest.

The money is to go to 32,000 fishermen, Alaska Natives, landowners, small businessmen and municipalities affected by the nearly 11 million gallon spill in Prince William Sound. An ExxonMobil official said the Irving, Texas-based company plans to appeal the 81-page ruling. The 9th U.S. Circuit Court of Appeals has twice vacated Holland’s decision in the case, said Exxon spokesman Tom Cirigliano. Holland had been ordered by the appellate court to reconsider the damages of an earlier ruling.

The judge was to consider a U.S. Supreme Court decision involving a Utah traffic accident and damages awarded in that case. “This ruling flies in the face of the guidelines set by the appeals court,” Cirigliano said. When the matter was sent back to Holland, Exxon Mobil lawyers predicted this would be the result — “serious further delays” — from having to appeal rulings from a court “that has already made numerous mistakes.” The spill occurred March 23, 1989, less than three hours after the 987 foot ship Exxon Valdez left the Alyeska Pipeline terminal in Valdez. The ship grounded at Bligh Reef, rupturing eight of its 11 cargo tanks and spewing 10.8 million gallons of crude oil into the sound.