U.S. Supreme Court to hear Valdez appeal

October 29, 2007

The United States Supreme Court has advised it will hear ExxonMobil's appeal against a $2.5 billion punitive damages award in a class action relating to the 1989 Exxon Valdez accident.

The Valdez oil spill was a tragic accident, one which the corporation deeply regrets. We took immediate responsibility for the spill, cleaned it up, and voluntarily compensated thousands of Alaskans and businesses affected by the spill. All claims for compensatory damages have been resolved. We have spent over $3.5 billion as a result of the accident, including compensatory payments, cleanup payments, settlements and fines.

The punitive damages case has never been about compensating people for actual damages. Rather it is about whether further punishment of ExxonMobil is warranted. The company does not believe any punitive damages are warranted in this case.

It is our continued view that the U.S. Supreme Court needs to provide more definitive guidance to the lower courts on the law governing punitive damages, and we are pleased that the Supreme Court has agreed to hear our petition on this matter. The Court is expected to hear the appeal in the first quarter of 2008.