US court cuts ExxonMobil damages for Valdez to 2.5 bln dlrs

SAN FRANCISCO (AFP) – A US appeals court cut the punitive damages to be paid for the 1989 Exxon Valdez oil tanker disaster to 2.5 billion dollars, saying the amount is more in line with legal precedent.

The ruling by the US Court of Appeals in San Francisco marked the latest turn in the long-running litigation against ExxonMobil Corp.

A jury had originally awarded five billion dollars to be paid in connection with the worst oil spill in US history. It was reduced to four billion and then raised to 4.5 billion following various appellate rulings.

The appeals court, in a 2-1 decision, said the reduced amount is more in line with a standard set by the US Supreme Court for punitive damages to be limited to a “single digit” multiple of compensatory damages.

AFP