Judge Reduces Award in Exxon Valdez Oil Spill

A federal judge Friday reduced by $1 billion the damage award against Exxon Mobil Corp. for spilling 11 million gallons of crude oil into Prince William Sound 13 years ago.

U.S. District Judge Russel Holland reduced the original $5-billion punitive damages award to $4 billion.

An Alaska jury in 1994 approved the original award in the Exxon Valdez spill, but the U.S. 9th Circuit Court of Appeals found it excessive and sent the case back to Holland.

Exxon Mobil says it will appeal the new figure. “Our position is no punitive damages are really warranted in this case,” said company spokesman Tom Cirigliano.

Dave Oesting, lead counsel for the roughly 32,000 plaintiffs -- including fishermen, communities, businesses and landowners -- said he was pleased with the judge’s decision.

“He believes $4 billion is an appropriate number, nothing less,” Oesting said.

Exxon Mobil argued that the company was effectively punished and deterred by the billions it had paid out in cleanup costs, compensation to hundreds of claimants and government fines.

Holland heard arguments in the case in October. Exxon Mobil attorneys said “a huge reduction” was required -- under criteria laid out by the appeals court, no more than $40 million.

“This ruling flies in the face of the guidelines set by the appeals court when they sent this case back to Judge Holland,” said Charles Matthews, Exxon Mobil vice president and general counsel.

The plaintiff’s liaison attorney said the judge noted the event’s enormity and the company’s recklessness, which could have led to greater damages.