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Exxon-Mobil Pollution Fine Reduced

A US Court of Appeals reduced the fine imposed on Exxon-Mobil for an oil leak that polluted approximately 2,400 Km off the coast of Alaska in 1989, during the weekend. The fine was reduced from $4.5 billion to $2.5 billion.

In 1994, a court in Anchorage, Alaska ordered Exxon-Mobil to compensate 34 thousand fishermen and Alaskan citizens, whose livelihood and property were damaged, after a oil tanker hit a registered reef, causing a leak that spread 11 million gallons of crude oil on the Alaskan coastline. The appeals court has already ordered the Anchorage court to reduce the $5 billion fine, which at the time was the highest fine given in American history, claiming the fine was exaggerated and was unconstitutional, in the light of a precedent made by the US Supreme Court. In an earlier ruling the court of appeals demanded the court in Anchorage define the exact amount of the fine. In 2002, a district judge reduced the fine to $4 billion. Exxon once again appealed, relying on a Supreme Court ruling from 2003, stating that compensation can not be more than 9 times the amount of the general damages. The Anchorage court set the fine at 17 times that of the damage.

The jury in the 1994 court case found that the leak happened due to Exxon`s negligence. The prosecution sufficiently proved that the tankers captain was drunk at the time of the accident and that Exxon was aware of the captain`s alcohol problem but allowed him to continue his duties. The prosecution in the case is currently considering appealing the courts decision to reduce the fine.