The U.S. Supreme Court agreed to hear Exxon's appeal of the already reduced $2.5 billion punitive damage award against the company for the Valdez oil spill in Alaska. A federal appeals court already cut in half the 1994 $5 billion award. Exxon wants to pay as little as possible to the 33,000 victims still living. They may just get their wish according to the AP:
The justices said they would consider whether the company should have to pay any punitive damages at all. If the court decides some money is due, Exxon is arguing that $2.5 billion is excessive under laws governing shipping and prior high court decisions limiting punitive damages.
The company argued it should not be held responsible for the mistakes of the ship's captain, Captain Joseph Hazelwood, who violated clear company rules when the Exxon Valdez ran aground with 53 million gallons of crude oil in its hold on March 23, 1989.
How could Exxon be held responsible for the glitch of one of their employees? Didn't Blackwater CEO Eric Prince just tell Congress that "people do stupid things". Well, it turns out Exxon knew their captain had gone through alcohol rehab and kept him on the payroll.
The plaintiffs argue Exxon knew Hazelwood had sought treatment for drinking, but had begun drinking again. "Exxon placed a relapsed alcoholic, who it knew was drinking aboard its ships, in command of an enormous vessel carrying toxic cargo across treacherous and resource-rich waters."
While it may not have been illegal, Exxon broke its commitment to the Native Americans who sold the land for the oil terminal at Valdez to the oil giant for $1. One of their demands was the use of "state of the art" radar. According to Greg Palast "the tanker’s radar was left broken and disabled for more than a year before the disaster, and Exxon management knew it. It was just too expensive to fix and operate."
The court's last ruling on punitive damages, in February, set aside a nearly $80 million judgment against Altria Group Inc.'s Philip Morris USA. The money was awarded to the widow of a smoker in Oregon.
If anyone is counting on this Supreme Court to land on the side of the victims of corporate malfeasance, don't hold your breath. The case likely won't be heard until spring of 2008. How many billions more will Exxon have earned by then? Their bottom line totalled $90 billion the last three years, $150 billion since 2000. Cash flow from operations from 2004-2006 exceeded $155 billion, of which $54 billion was used to repurchase company stock.
Pay close attention to this case, common citizen. It will speak volumes about the power of the players in a "free market, democracy". It's not a good sign that Supreme Court Justice Sameul Alito owns between $100,000 and $250,000 in Exxon stock. While he recused himself, my guess is the 33,000 little guys and gals don't fare so well against the Exxon's and Philip Morris' of the world. But time will tell...
The justices said they would consider whether the company should have to pay any punitive damages at all. If the court decides some money is due, Exxon is arguing that $2.5 billion is excessive under laws governing shipping and prior high court decisions limiting punitive damages.
The company argued it should not be held responsible for the mistakes of the ship's captain, Captain Joseph Hazelwood, who violated clear company rules when the Exxon Valdez ran aground with 53 million gallons of crude oil in its hold on March 23, 1989.
How could Exxon be held responsible for the glitch of one of their employees? Didn't Blackwater CEO Eric Prince just tell Congress that "people do stupid things". Well, it turns out Exxon knew their captain had gone through alcohol rehab and kept him on the payroll.
The plaintiffs argue Exxon knew Hazelwood had sought treatment for drinking, but had begun drinking again. "Exxon placed a relapsed alcoholic, who it knew was drinking aboard its ships, in command of an enormous vessel carrying toxic cargo across treacherous and resource-rich waters."
While it may not have been illegal, Exxon broke its commitment to the Native Americans who sold the land for the oil terminal at Valdez to the oil giant for $1. One of their demands was the use of "state of the art" radar. According to Greg Palast "the tanker’s radar was left broken and disabled for more than a year before the disaster, and Exxon management knew it. It was just too expensive to fix and operate."
The court's last ruling on punitive damages, in February, set aside a nearly $80 million judgment against Altria Group Inc.'s Philip Morris USA. The money was awarded to the widow of a smoker in Oregon.
If anyone is counting on this Supreme Court to land on the side of the victims of corporate malfeasance, don't hold your breath. The case likely won't be heard until spring of 2008. How many billions more will Exxon have earned by then? Their bottom line totalled $90 billion the last three years, $150 billion since 2000. Cash flow from operations from 2004-2006 exceeded $155 billion, of which $54 billion was used to repurchase company stock.
Pay close attention to this case, common citizen. It will speak volumes about the power of the players in a "free market, democracy". It's not a good sign that Supreme Court Justice Sameul Alito owns between $100,000 and $250,000 in Exxon stock. While he recused himself, my guess is the 33,000 little guys and gals don't fare so well against the Exxon's and Philip Morris' of the world. But time will tell...
