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The Exxon Valdez disaster

Posted: Tuesday, February 26, 2008 6:41 PM by Barbara Raab

By Pete Williams, NBC News Justice correspondent

In many ways, today's showdown at the U.S. Supreme Court over the Exxon Valdez disaster is about numbers -- the amount of oil spilled, the number of Alaskans who suffered, and the size of the damages awarded. But the most important number may be this one: eight. That's how many justices are hearing the case, and that could make all the difference.

Image: Exxon Valdez oil spillMore than 30,000 Alaskans went to court after Exxon's supertanker hit a reef in 1989. Their lawsuit said the resulting spill of nearly 11 million gallons of oil into the state's coastal waters virtually wiped out their ability to earn a living from the sea. A jury awarded them five billion dollars in punitive damages. A federal appeals court later cut that in half, but Exxon is hoping the Supreme Court will find even that excessive.

Noting that punitive damages are intended to punish for wrongdoing, Exxon says the lower court should never have awarded them because they're legally unavailable here. The company says the federal government has already done the punishing by assessing fines against Exxon. Second, Exxon says under the centuries-old law of the sea, shipping companies cannot be required to pay punitive damages based on the actions of a ship's captain. Once at sea, a ship's commander historically acted independently, and the owners had no control over him. But even if some punitive damages are allowed, the company says it has already paid $3.4 billion in fines and settlements and enough is enough.

Image: Exxon Valdez oil spillThe Alaskans say Exxon is legally responsible for the actions of the Valdez captain, claiming that the company's wrongdoing started well before the ship ever left port. They claim Exxon knew that Captain Joseph Hazelwood had a drinking problem but did nothing about it and that he had been drinking on the night the ship went aground. As for the right to sue for punitive damages, they say the government fines are assessed for polluting the environment. The Alaskans are suing to punish Exxon for what it did to them as individuals.

The Alaskans are hoping they can count on the court's four liberal members -- Stevens, Souter, Ginsburg, and Breyer. Ordinarily, that would not be enough for victory, because it takes at least five votes to win a case. But it may be enough this time. Justice Samuel Alito, who owns Exxon stock, is sitting this case out. That leaves eight justices. A four-four tie would keep the lower court ruling intact, which was a victory for the Alaskans because it ordered Exxon to pay the $2.5 billion.

A decision is expected by late June.

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BEFORE I SAY ANYTHING, I DO HAVE TO SAY THIS;
All you people from Washington, California and Kentucky, since you weren't here and you represent 100% of the comments even vaguely supporting Exxon, keep your stinkin nose and opinions to yourself. If you weren't effected, I don't want to hear anything you have to say. Go talk about something that has something to do with you.

Hello! My name is Stacy, and my fiance David is a
Claimant in the case. I've been trying to find an easy
source to answer these questions I have concerning the
case;
Dave and I both grew up in Kodiak, one of the effected
area's of the 1989 Exxon oil spill. We never thought
this case would come to an end! Now that it is finally
ending, so many questions have surfaced in the face of
the next generation receiving this punitive damage
money. Twenty years later, and twenty percent? of the
claimants in the case have died, or so I've heard. So
we are in our late twenties, receiving money from a
disaster that happened 20 years ago, predominantly to
our parents and older family members, and I don't
really know where to begin. This money will help to
fuel our lives, put a down payment on a home, and buy
the car we've needed for a long time. It would seem
like a gift from god, if not for the conditions of the
situation and our awful memories of the spill.  
Before my questions, a comment.
First, I'd like to say I was on a Talk of Alaska web
site recently, listening to quicktime downloads of
interviews with people who lived in Cordova. Not
exactly Ver-Batum, but  one lady mentioned that Exxon
is not a community supportive, Alaska supportive, or
Compassionate company, "YET". Her statement implied
that until Exxon-Mobil pays up, they'll never live
this disaster down, or regain the trust of Alaskans.
Well I think Exxon will NEVER be able to live down the
20 years of appeal, attempting everything in their
power NOT to compensate effected communities. Even if
Exxon pays the punitive damage award, it was by a
severely twisted arm that we got here. Remember Exxon
never WANTED to compensate us. We've been fighting
them in court for 20 years to do so, and so I
personally will never think of them as an "Alaska
supportive" oil company.

Now for my Questions;
First, if Exxon won the case which we all hope doesn't
happen, would that solidify Maritime law in todays
commerce? It's such an outdated law as are so many
others, that this specific case implies that no matter
what trouble you get into, your lawyer can just dig
through the ages and find a 200 year old law to get
you out of trouble. If we win, do you think there
should be a, "cleaning up" of our laws, and what we
deem fit for today's society? States in the original
13 colonies have these types of laws from over 200
years ago when our country was founded. Mabey every 50
years recognize which laws are no longer needed, or
simply do not apply to a faster, updated and much more
fluid way we do business in this country and the
world.
Second, How has this case lasted 20 years with the
small laundry list of people having known of Capt.
Hazelwoods drinking problem? And if Exxon has been
simply dancing around these issues, what does that say
about doing business with Exxon in general? l think
Alaska should take a breath, take a minute, and take a
good long look at the oil company romancing us just
for our oil. Its quite a slap in the face. Sure Alaska
can take care of itself against any wrongdoers,  but
do we WANT to do business with a company who would
unfairly, and dishonestly fight to not compensate the
community? Do we WANT to work with a company who
smiles in our faces, yet fights us in court?
Third; We received a packet from the EQSF. This packet
was sent to all claimants. The documents enclosed
stated that if Exxon appealed, which they have, we
would not only re-appeal, but raise the damage money
back to the original 5 billion figure. However, my
understanding is we are still in court, frantically
clammering over 2.5. So understandably, Im confused as
to what exactly is happening behind the closed doors
of the court room.
Fourth and Final Question; The 2.5 billion dollars has
beeen sitting in the bank for nearly 20 years accruing
interest. That brings the grand total 20 years later
to nearly the original 5 billion figure. 2.5 billion
dollars divided by the 33,000 claimants comes to
around 72 thousand dollars per claimant, and thats the
number thats been tossed over the radio waves and
talked about in conversations all around alaska. But
with interest, does that not boost the individual
damage award to over 150 thousand dollars? Im confused
as to WHAT is happening to that interest money... are
we getting it?

Well that's all! Thanks so much for your time!
Stacy
Exxon never came close to cleaning up it's mess.  The true cost of cleaning up their mess would have cost tens of billions.  If the Supreme court screws the fishermen on this no brainer, it will be the beginning of the end of the American faith in the judicial system.  It's already hanging by a thread. The beginning of anarchy. Without punishing damages, oils spills will just become part of the cost of doing business in the future.  They need to feel some pain to change their heartless attitudes.  2.5 billion isn't near enough.
Exxon never came close to cleaning up it's mess.  The true cost of cleaning up their mess would have cost tens of billions.  If the Supreme court screws the fishermen on this no brainer, it will be the beginning of the end of the American faith in the judicial system.  It's already hanging by a thread. Without punishing damages, oils spills will just become part of the cost of doing business in the future.  They need to feel some pain to change their heartless attitudes.  2.5 billion isn't near enough.
The only way to show Exxon what we think is to NOT BUY EXXON GAS! Start an email. Spread the word.
Nineteen years is a long time to wait.  Hang-on,  only a couple more weeks!
If you really think about it....I mean sit back and really ponder the situation....You have to come to the same obvious opinion that I, as an Alaska Native, have arrived at.  Since your arrival on our shores on or about 1492 your record on environmental issues stinks! Boycott Exxon.  
Exxon is not a fit company or for that matter operations skills one lie after the other that destroyed enough lifes for decades and ecanomicly destroyed home famlies and still live with it all the people in the prince william sound it will never end there unfit company stealing peoples lifes and still getting away with it ban exxon from alaska forever there a no good company alls they want to do is sue happy
i watched the program last night regarding the whole oil spill and what went on. I have to say that its a total dissgrace the way that EXXON treated the people with utter contempt, even the experts. They may well denie this but i think they know dam well that the area still needs a lot of money pumped in to try to get it back to the way it was. I dont see EXXON making any effort, even now, to try to rebuild the lifes of those effected, not to mention the wildlife. Enopught of this rubbish regarding the fact that they have paid the fines etc and 'enough is enough' . In my mind enough has been done when EXXOn make the effort to put back whats been taken from the area. I have to say, its the same old same old, if you have money thats all that matters , eh??!! Powerful companies, whats a few thousand lifes for a nice profit. O yeah, the quote which stuck in my mind from the program ' a few critters lost here will be replaced from up the way' , what an arrogent son of a b. The scale of the loss of life including mico organisms and the whole food chain there was destroyed in a matter of weeks. Its now more than 20 years on and the food chain is stilll badly wrong. Still no sign of killer whales. I',m sure there is still an abundance of 'tar' left under the sand!!
We as a human race make all of our mistakes by trusting in man. Governments are corrupt, Churches are but financial institutions and the media is on a leash. Their is but one true God with only one truth, and not all of the half truths and lies that man teaches. The USA is about to fall followed by total world chaos and WW III. Amen, let the end come so that God's kingdom will reign forever with no more true horror stories ever again.


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