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Exxon to appeal damages ruling
Volume 30/Number 4/April 1995
The oil spill, which occurred off the southern Californian coast, happened after the vessel hit one of her own anchors and ran aground. The oil spread over 60 square miles of ocean and fouled shores between Seal Beach and Laguna Beach. The important resort of Huntingdon Beach was badly polluted for up to 5 weeks and more than 100 brown pelicans, an endangered species under US federal law, were killed. A major clean-up exercise was mounted following the spill, and BP paid out $12 million at the time under original claims from property owners and businesses in the area. Under the settlement, most of the money will go to wildlife restoration projects and the remainder will help reimburse state and local authorities for the costs of the spill.
Exxon to Appeal Damages Ruling Exxon are to appeal against rulings by the federal district court in Alaska which let stand compensatory and punitive damage verdicts following the Exxon Valdez oil spill in 1989 (see Mar. Pollut. Bull. 28(8), 469). After the conclusion of the trial in September 1994, Exxon filed a series of motions asking Judge Holland to reject certain portions of the spill compensation on the grounds that the available evidence did not provide sufficient support for the award. They also filed motions asking Judge Holland to throw out the jury's punitive damage awards and order a new trial to determine the damages. These claims were based on the arguments that: • the jury was allegedly given erroneous instructions for deciding whether the actions of Hazelwood and Exxon should be considered 'negligent' or 'reckless'; • the results of Hazelwood's blood tests, which showed a high blood alcohol level, were invalid; • the jury's decision to award punitive damages were unwarranted, given the weight of emotions in the trial; • the amount of the punitive damages was excessive under the circumstances. Judge Holland rejected each of the challenges to the jury's punitive damages awards and held that the jury's decision to require Exxon to p a y punitive damages was reasonable, given the evidence presented during the trial. He disagreed with Exxon's claim that the $5 billion damage award was 'grossly excessive' compared to the awards made in other cases, and he rejected the company's request that he either overturn or drastically reduce the award. He also was not of the opinion that the jury's damages verdict was the result of passion or
prejudice against Exxon. According to Holland, the court respected the 'collective wisdom of the jury' and accepted its findings. In response to Judge Holland's rulings, Exxon vowed to appeal the damage verdicts and 'use every legal means available to overturn this unjust verdict'.
News-in-Brief Falkland Islands Oil and gas exploration around the Falkland Islands will probably be developed under the joint organization of the UK and Argentina. Co-operation between the two countries is currently being investigated in talks between Argentina's Undersecretary for Political Affairs, Guillermo Gonzales, and the UK Undersecretary for the Americas, William Marsden. President Carlos Menem of Argentina, in power since 11989, has encouraged such co-operation in many issues including trade. British Gas is interested in exploring the South Atlantic and could work in a joint venture with YPF, the Argentina oil company. Joint administration between the two countries would be expected in any attempts at exploration and developments.
Netherlands Four tankers have now received the Rotterdam Green Award certificate: the Eleo Maersk, Hawaii, Ambon and Ilian. The president of ICB Shipping AB of Stockholm, Ola Lorentzon, was presented with a certificate for the Ambon in February. Two more tankers are being evaluated at the moment. The Green Award will lead to a $35 000-$40 000 saving in port dues on each visit, according to Mr Lorentzon. The Award results in 6% discount o n port fees, and free assistance of two qualified boatmen. The idea is spreading and now the South African Port Authority, Portnet, is allowing a 5% discount on port dues if the vessels hold certificates, and are not double hulled or fitted with segregated ballast tanks.
Greece The master, chief engineer and boatswain of the bulk carder Thalassoporos (9783 gt) have received sentences of five months imprisonment by Volos Magistrates Court for the oil pollution found around the Agria Cement installation at the beginning of February. A further fine of DRs 300 000 (USS 1250) has been levied on the master. All three men have been released pending their appeal against the sentences.
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The oil spill, which occurred off the southern Californian coast, happened after the vessel hit one of her own anchors and ran aground. The oil spread over 60 square miles of ocean and fouled shores between Seal Beach and Laguna Beach. The important resort of Huntingdon Beach was badly polluted for up to 5 weeks and more than 100 brown pelicans, an endangered species under US federal law, were killed. A major clean-up exercise was mounted following the spill, and BP paid out $12 million at the time under original claims from property owners and businesses in the area. Under the settlement, most of the money will go to wildlife restoration projects and the remainder will help reimburse state and local authorities for the costs of the spill.
Exxon to Appeal Damages Ruling Exxon are to appeal against rulings by the federal district court in Alaska which let stand compensatory and punitive damage verdicts following the Exxon Valdez oil spill in 1989 (see Mar. Pollut. Bull. 28(8), 469). After the conclusion of the trial in September 1994, Exxon filed a series of motions asking Judge Holland to reject certain portions of the spill compensation on the grounds that the available evidence did not provide sufficient support for the award. They also filed motions asking Judge Holland to throw out the jury's punitive damage awards and order a new trial to determine the damages. These claims were based on the arguments that: • the jury was allegedly given erroneous instructions for deciding whether the actions of Hazelwood and Exxon should be considered 'negligent' or 'reckless'; • the results of Hazelwood's blood tests, which showed a high blood alcohol level, were invalid; • the jury's decision to award punitive damages were unwarranted, given the weight of emotions in the trial; • the amount of the punitive damages was excessive under the circumstances. Judge Holland rejected each of the challenges to the jury's punitive damages awards and held that the jury's decision to require Exxon to p a y punitive damages was reasonable, given the evidence presented during the trial. He disagreed with Exxon's claim that the $5 billion damage award was 'grossly excessive' compared to the awards made in other cases, and he rejected the company's request that he either overturn or drastically reduce the award. He also was not of the opinion that the jury's damages verdict was the result of passion or
prejudice against Exxon. According to Holland, the court respected the 'collective wisdom of the jury' and accepted its findings. In response to Judge Holland's rulings, Exxon vowed to appeal the damage verdicts and 'use every legal means available to overturn this unjust verdict'.
News-in-Brief Falkland Islands Oil and gas exploration around the Falkland Islands will probably be developed under the joint organization of the UK and Argentina. Co-operation between the two countries is currently being investigated in talks between Argentina's Undersecretary for Political Affairs, Guillermo Gonzales, and the UK Undersecretary for the Americas, William Marsden. President Carlos Menem of Argentina, in power since 11989, has encouraged such co-operation in many issues including trade. British Gas is interested in exploring the South Atlantic and could work in a joint venture with YPF, the Argentina oil company. Joint administration between the two countries would be expected in any attempts at exploration and developments.
Netherlands Four tankers have now received the Rotterdam Green Award certificate: the Eleo Maersk, Hawaii, Ambon and Ilian. The president of ICB Shipping AB of Stockholm, Ola Lorentzon, was presented with a certificate for the Ambon in February. Two more tankers are being evaluated at the moment. The Green Award will lead to a $35 000-$40 000 saving in port dues on each visit, according to Mr Lorentzon. The Award results in 6% discount o n port fees, and free assistance of two qualified boatmen. The idea is spreading and now the South African Port Authority, Portnet, is allowing a 5% discount on port dues if the vessels hold certificates, and are not double hulled or fitted with segregated ballast tanks.
Greece The master, chief engineer and boatswain of the bulk carder Thalassoporos (9783 gt) have received sentences of five months imprisonment by Volos Magistrates Court for the oil pollution found around the Agria Cement installation at the beginning of February. A further fine of DRs 300 000 (USS 1250) has been levied on the master. All three men have been released pending their appeal against the sentences.
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