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NEWS ROOM

Oil Spill Award Cheers Local Attorney
2003-03-01

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Oil Spill Award Cheers Local Attorney
By Michael Howerton
IJ reporter

Attorney Randall Scarlett of San Rafael celebrated this weekend after learning that his 13-yearold with Exxon Corp. for the Exxon Valdez oil spill in Alaska might be nearing end.

A federal judge reduced the punitive award against Exxon Corp. for spilling 11 million gallons of crude oil into Prince William Sound - but only 20 percent. U.S. District Judge Russel Holland in a ruling late Friday reduced the original $5 billion punitive damages award to $4 billion.

This $4 billion judgment would be a tremendous victory for the plaintiffs, Scarlett said.

Scarlett represents 750 plaintiffs in the case through his San Francisco firm, Scarlett Law Group. His clients mostly fisherman, fish industry workers, and land owners, have waited too long to recoup damages, he said. "We've had clients who have died," he said. "Many have lost their boats, lost their homes."

A spokesman for Exxon Mobile said the company will appeal.

"Our position is no punitive damages are really warranted in this case," Tom Cirigliano told the Associated Press.

Scarrlett said Holland's decision to reaffirm a large punitive award against the company will be hard for the 9th Circuit Court of Appeals to find fault with.

"We're getting closer to the end of this thing, closer to victory for those plaintiffs who have waited and waited," Scarlett said. "It means so much to so many people, so many who have suffered. They have been to hell and back over this."

Dave Oesting, lead counsel for the roughly 32,000 plaintiffs, which include fishermen, communities, businesses and landowners, said he was pleased with the decision. He said Judge Holland followed guidelines ordered by the 9th U.S. Circuit Court of Appeals.

"He believes $4 billion is an appropriate number, nothing less," Oesting said.

An Alaska jury in 1994 approved the big award in the Exxon Valdez oil spill. After the verdict, Exxon appealed to the 9th Circuit, which agreed with the company that the award was "excessive."

Exxon argued that the company was effectively punished and deterred by billions it had paid out in cleanup costs, compensation to hundreds of claimants and government fines.

That included $300 million in damages, compared to actual damages of $287 million, Cirigliano said, plus $2.2 billion in cleanup costs.

"We had claims offices set up throughout Prince William Sound and down to Seattle," Cirigliano said.

Holland heard arguments in the case in October. Attorneys for Exxon said "a huge reduction" was required. Exxon Mobil Vice President and General Counsel Charles Matthews said Friday Holland's latest ruling will be appealed.

"This ruling flies in the face of the guidelines set by the appeals court when they sent this case back to Judge Holland," Matthews said.


The Associated Press contributed, to this report

 

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