WASHINGTON–The Supreme Court ruled yesterday in the 19-year-old Exxon Valdez oil spill case that punitive damage awards should be predictable and not exceed a one-to-one ratio with compensatory damages.
The effect of the decision was to cut what was originally a $5 billion punitive damages award for the spill to about $500 million.
"The court has provided needed predictability in maritime cases and set forth a sound approach for courts and legislators to consider with regard to punitive damages in general," according to Mark Behrens, a partner in Shook, Shook, Hardy & Bacon LLP., Washington, D.C.
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