US Supreme Court case Exxon Shipping Co. v. Baker

E682976

Exxon Shipping Co. v. Baker is a 2008 U.S. Supreme Court decision that significantly limited punitive damages awarded against Exxon for the Exxon Valdez oil spill, shaping modern maritime and punitive damages law.

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Predicate Object
instanceOf United States Supreme Court case
maritime law case
punitive damages case
affectedParty Alaska Native communities
linked to: Alaska Natives

Exxon Mobil Corporation shareholders
commercial fishermen in Alaska
appliesTo federal maritime cases
aroseFromDate March 24, 1989
aroseFromEvent Exxon Valdez oil spill
aroseFromLocation Prince William Sound, Alaska
citation 554 U.S. 471
concurrenceBy Justice John Paul Stevens
linked to: John Paul Stevens

Justice Ruth Bader Ginsburg
linked to: Ruth Bader Ginsburg
decisionDate June 25, 2008
docketNumber 07-219
doesNotRestOn Due Process Clause of the U.S. Constitution
linked to: Due Process Clause
hasCourt Supreme Court of the United States
hasPetitioner Exxon Shipping Company
hasRespondent Grant Baker
other commercial fishermen and private parties
holding In maritime cases, punitive damages may not exceed compensatory damages in a 1:1 ratio absent exceptional circumstances defined by Congress
Punitive damages in this case were reduced to $507.5 million to match compensatory damages
The $2.5 billion punitive damages award against Exxon was excessive under federal maritime common law
impact influenced later punitive damages jurisprudence in federal and state courts
significantly limited punitive damages exposure for maritime defendants
issue Whether Exxon could be held vicariously liable for punitive damages based on the conduct of the ship’s captain
Whether federal maritime law imposes limits on punitive damages
Whether the punitive damages award against Exxon for the Exxon Valdez spill was excessive under maritime law
joinedByInMajority Chief Justice John G. Roberts Jr.
linked to: John G. Roberts Jr.

Justice Anthony M. Kennedy
linked to: Anthony M. Kennedy

Justice Antonin Scalia
linked to: Antonin Scalia

Justice Clarence Thomas
linked to: Clarence Thomas

Justice Samuel A. Alito Jr.
linked to: Samuel A. Alito Jr.

Justice Stephen G. Breyer
linked to: Stephen G. Breyer
jurisdiction federal maritime jurisdiction
legalArea federal common law
maritime law
punitive damages
majorityOpinionBy Justice David H. Souter
linked to: David H. Souter
originatedFrom United States Court of Appeals for the Ninth Circuit
United States District Court for the District of Alaska
relatedCase BMW of North America, Inc. v. Gore
State Farm Mutual Automobile Insurance Co. v. Campbell
relatedEvent Exxon Valdez grounding on Bligh Reef
linked to: Exxon Valdez
restsOn federal maritime common law authority of the Supreme Court
result established a 1:1 ceiling on punitive-to-compensatory damages ratio in maritime cases under federal common law
punitive damages award substantially reduced
ruledOn vicarious corporate liability for punitive damages in maritime cases
voteSplit 5-3 on punitive damages ratio rule

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Exxon Valdez oil spill legalOutcome US Supreme Court case Exxon Shipping Co. v. Baker