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| Exxon can contest $2.5bn oil fine | |
| (1 day later) | |
| Exxon Mobil has won the right to appeal against a $2.5bn (£1.21bn) damages bill relating to a 1989 Alaskan oil spill. | Exxon Mobil has won the right to appeal against a $2.5bn (£1.21bn) damages bill relating to a 1989 Alaskan oil spill. |
| The US Supreme Court said it would hear the appeal against record damages due to victims of the Valdez oil spill. | The US Supreme Court said it would hear the appeal against record damages due to victims of the Valdez oil spill. |
| The case has dragged on since 1994 with the US oil giant fighting to reduce the bill, which it has called excessive. | The case has dragged on since 1994 with the US oil giant fighting to reduce the bill, which it has called excessive. |
| In what was one of the biggest ever oil spills, 11 million gallons of crude were released into Alaska's wilderness after the Exxon tanker hit a reef. | In what was one of the biggest ever oil spills, 11 million gallons of crude were released into Alaska's wilderness after the Exxon tanker hit a reef. |
| About 1,300 miles (2,080km) of coastline was contaminated as a result of the oil spill. | About 1,300 miles (2,080km) of coastline was contaminated as a result of the oil spill. |
| Constitutional issues | Constitutional issues |
| Captain of the Valdez, Joseph Hazelwood, admitted drinking vodka before boarding the vessel, but was subsequently acquitted of operating a ship while intoxicated. | Captain of the Valdez, Joseph Hazelwood, admitted drinking vodka before boarding the vessel, but was subsequently acquitted of operating a ship while intoxicated. |
| This record punitive award unquestionably raises important issues of constitutional dimension Walter Dellinger, Exxon lawyer | This record punitive award unquestionably raises important issues of constitutional dimension Walter Dellinger, Exxon lawyer |
| Exxon argues that it cannot be held responsible for the actions of Mr Hazelwood and says that the $2.5bn penalty is excessive under marine law and when compared with other federal rulings on punitive damages. | Exxon argues that it cannot be held responsible for the actions of Mr Hazelwood and says that the $2.5bn penalty is excessive under marine law and when compared with other federal rulings on punitive damages. |
| "This record punitive award unquestionably raises important issues of constitutional dimension," said Walter Dellinger, Exxon's lead lawyer on the case. | "This record punitive award unquestionably raises important issues of constitutional dimension," said Walter Dellinger, Exxon's lead lawyer on the case. |
| The world's biggest listed oil firm, Exxon added that it had already paid $3.4bn in clean-up costs and other fines related to the oil disaster and damage to the natural environment. | The world's biggest listed oil firm, Exxon added that it had already paid $3.4bn in clean-up costs and other fines related to the oil disaster and damage to the natural environment. |
| But lawyers for the victims dispute the charge that the award is too high and argue that the damages represent "barely more than three weeks of Exxon's net profit". | But lawyers for the victims dispute the charge that the award is too high and argue that the damages represent "barely more than three weeks of Exxon's net profit". |
| In 2006, Exxon reported the highest ever net annual profit for a US business at $39.5bn. | In 2006, Exxon reported the highest ever net annual profit for a US business at $39.5bn. |
| Repeated challenges | Repeated challenges |
| If the ruling is upheld by the Supreme Court the money would be split between 32,000 fishermen, natives, land owners, small businessmen and municipalities in south central Alaska. | If the ruling is upheld by the Supreme Court the money would be split between 32,000 fishermen, natives, land owners, small businessmen and municipalities in south central Alaska. |
| Some of the victims had died while Exxon has repeatedly challenged court verdicts, lawyers said. | Some of the victims had died while Exxon has repeatedly challenged court verdicts, lawyers said. |
| Back in 1994 a jury in Alaska ordered US giant Exxon to pay $5bn in damages, but the firm successfully appealed against the size of the award. | |
| After a number of court cases over the intervening years, this figure was cut by federal judges until a US appeals court set the amount at $2.5bn. | After a number of court cases over the intervening years, this figure was cut by federal judges until a US appeals court set the amount at $2.5bn. |
| The appeal will go before the Supreme Court in February or March 2008, with a ruling expected by the end of June. | |
| Exxon shares added 1.5% to $93.61 by close of trade in New York. | Exxon shares added 1.5% to $93.61 by close of trade in New York. |