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The high court recently heard oral arguments in a case about the propriety of a large punitive damages award against Exxon arising out of the grounding of the Exxon Valdez and the spilling of millions of gallons of oil into Prince William Sound, Alaska. The real issue is whether a $2.5 billion exaction is reasonably necessary to punish and deter. Given that Exxon never intended to hurt anyone yet already has paid more than $3.4 billion in damages, settlements, remediation costs and fines, the answer is no.
April 14, 2008 at 12:00 AM
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