U.S. Supreme Court hears Valdez appeal

February 27, 2008

ExxonMobil this week made its case in the United States Supreme Court on the question of whether punitive damages are applicable in the Exxon Valdez oil spill case.

As the company has said many times, the Valdez oil spill was a tragic accident, and one which the company deeply regrets.

The punitive damages case before the Supreme Court is not about compensating people for actual damages. All such claims have been resolved. Rather, the case is about whether further punishment is warranted in a situation where the company voluntarily compensated most plaintiffs within a year of the spill, and has spent over $3.5 billion, including compensatory payments, cleanup payments, settlements and fines. The company believes no punitive damages are warranted in this case.

It is our view that, by hearing this case, the Supreme Court has an important opportunity to provide guidance to the lower courts in relation to the application of punitive damages.

The company will now await the Court’s decision on this matter, which is expected by the middle of this year.