Exxon Shipping Co. v. Baker (554 U.S. 471)

U.S. Supreme Court · decided June 26, 2008 · Supreme Court Database (Spaeth)

Citation
554 U.S. 471 · 128 S. Ct. 2605
Decided
June 26, 2008
Term
October Term 2007
Vote
5–3
Majority author
Justice Souter
Issue area
Economic Activity
Disposition
Vacated and remanded
Outcome
Petitioning party won
Ideological direction
Conservative

Opinion excerpt

Justice Souter delivered the opinion of the Court. There are three questions of maritime law before us: whether a shipowner may be liable for punitive damages without acquiescence in the actions causing harm, whether punitive damages have been barred implicitly by federal statutory law making no provision for them, and whether the award of $2.5 billion in this case is greater than maritime law should allow in the circumstances. We are equally divided on the owner’s derivative liability, and hold that the federal statutory law does not bar a punitive award on top of damages for economic loss, but that the award here should be limited to an amount equal to compensatory damages. I On March 24, 1989, the supertanker Exxon Valdez grounded on Bligh Reef off the Alaskan coast, fracturing its hull and spilling millions of gallons of crude oil into Prince William Sound. The owner, petitioner Exxon Shipping Co. (now SeaRiver Maritime, Inc.), and its owner, petitioner Exxon Mobil Corp. (collectively, Exxon), have settled state and federal claims for environmental damage, with payments exceeding $1 billion, and this action by respondent Baker and others, including commercial fishermen and native Alaskans, was brought for economic losses to individuals dependent on Prince William Sound for their livelihoods. A The tanker was over 900 feet long and was used by Exxon to carry crude oil from…

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