ExxonMobil response to inquiries about 9th Circuit Court of Appeals 12/22/06 ruling on Valdez punitive damages

On December 22, 2006 the 9th U.S. Circuit Court of Appeals in San Francisco cut the Valdez punitive damages award from $4.5 billion to $2.5 billion.

The Valdez oil spill was a tragic accident that ExxonMobil deeply regrets.  The company took immediate responsibility for the spill, cleaned it up, and voluntarily compensated those who claimed direct damages.

This case is not about compensating people for damages. The plaintiffs have been compensated for damages and most were compensated within one year of the spill. This ruling is about whether punitive damages are warranted in this case.

We are in the process of reviewing the court's 65 page ruling.

It is our view that the U.S. Supreme Court needs to provide more definitive guidance to the lower courts on the law governing punitive damages. In our opinion, the facts of this case do not warrant an award of this size.