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Exxon Shipping Co. v. Baker

United States Supreme Court

554 U.S. 471 (2008)

Relevant factsFree

The Exxon Valdez ran aground due to the negligence of its captain, an employee of Exxon Shipping Co. (defendant), spilling oil into Prince William Sound. Baker and other fishermen and Sound users (plaintiffs) sued for economic losses; the district court awarded $507.5 million in compensatory damages and $5 billion in punitive damages, which the Ninth Circuit reduced to $2.5 billion. Exxon appealed the punitive award to the Supreme Court.

IssueFree

Whether a punitive-to-compensatory damages ratio of approximately 5:1 is too high in a maritime case.

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