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Case ID: 3153 | Environmental | 09/30/2004
The court has ruled that Exxon Mobil Corporation must pay nearly $7 billion in damages to the fishermen and communities affected by the 1989 Exxon Valdez oil spill. The ruling, which ends the lawsuit's third trip through the federal trial court, eventually could mean millions of dollars for Washington fishermen who worked in the waters of Prince William Sound and near Kodiak, Alaska. The money will not be distributed until all possible appeals have been exhausted.
In the 81-page ruling, the judge ruled that Exxon must pay $4.5 billion in punitive damages and $2.25 billion in interest. In all, 32,000 people have claims in the class-action lawsuit, including entire small coastal communities, business owners and Alaska natives. The case stems from one of the worst environmental disasters in U.S. history. On March 24, 1989, the Valdez, one of Exxon's newest oil tankers, pulled out of the pipeline terminal at Alyeska and moved into Prince William Sound. Capt. Joe Hazelwood ordered his direct subordinates to guide the ship out of the Valdez Narrows shipping channel to avoid icebergs and then return to the channel when the danger passed. He then left the wheelhouse to get some sleep. The ship never returned to the shipping channel, eventually running aground on Bligh Reef. The ruptured tanks dumped 11 million gallons of oil into the sound. The spill affected 1,300 miles of coastline and decimated local fisheries. Some, such as pink shrimp and herring, still haven't recovered. In 1996, in what was the largest punitive damages award in U.S. history, a federal jury ordered Exxon to pay $5 billion to 34,000 Alaskans and fishermen. The company successfully appealed the award to the 9th U.S. Circuit Court of Appeals. Saying the award -- equal to a year of company profits -- was too high, the 9th Circuit sent the case back to the federal district court. One year later, the judge in the case reduced the award by $1 billion. Exxon appealed again. The 9th Circuit again sent the case back, saying the U.S. Supreme Court had modified guidelines for excessive damages and the case must be re-examined with those guidelines in mind. In January 2004, the lower court ruled that the oil giant owed $4.5 billion in damages, not including interest. At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Environmental Cases of Interest After nearly a decade of legal disputes, Pacific Gas and Electric Co. agreed to pay $295 million to settle a series of lawsuits alleging the utility sickened hundreds of people by contaminating the water in three California counties. The settlement, affecting about 1,100 people in Kings, Riverside and San Bernardino counties, moves PG&E closer to resolving a bitter battle that resurrected claims from a similar case made famous in the movie, "Erin Brockovich." A class action was filed on behalf of nine hurricane Katrina and Rita victims by the NY Solidarity Coalition with Katrina/Rita Survivors. After both sides negotiated behind closed doors, the hotel's attempt to evict the refugees was refused by a judge in Queens housing court. Several class actions have been filed against soil contamination remediator Bennett Environmental, Inc., (AMEX:BEL; TSX:BEV) and certain of its officers and directors by American and Canadian stockholders who purchased the company's common stock between June 2, 2003, and July 22, 2004. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. A class action lawsuit has been filed in the state circuit court in Collier County, Florida against Orange Tree Utility Co. The lawsuit is brought on behalf of water customers of Orange Tree in the Naples area, who claim that the water fails to meet safe water standards, has an unpleasant appearance, taste and odor, and may cause health problems. The suit alleges that Orange Tree Utility Co. has consistently ignored consumer complaints about the quality of the water and seeks damages for medical bills, property damage and the cost of extra water filtration devices. Kahn Gauthier Swick is investigating possible legal actions against Norfolk Southern and other responsible parties after a train carrying chlorine as well as several other toxic chemicals crashed into a parked train at the Avondale Mills Textile Plant in the small town of Graniteville, South Carolina, in Aiken County, on January 6, 2005, causing eight deaths, hundreds of injuries and an evacuation of the surrounding area. A class action has been filed against St. Joe Paper Company and its successor, The St. Joe Company, on behalf of the residents of Millview, a neighborhood in the panhandle town of Port St. Joe, Florida. The suit alleges that the companies knowingly exposed the plaintiffs to hazardous substances. |
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