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Admiralty Law Keyed to Maraist
Exxon Shipping Co. v. Baker
Citation:
554 U.S. 471 (2008)Facts
On March 24, 1989, the supertanker Exxon Valdez, carrying 53 million gallons of crude oil, ran aground on Bligh Reef in Prince William Sound, Alaska, fracturing its hull and spilling approximately 11 million gallons of oil. The ship’s captain, Joseph Hazelwood, had a history of alcoholism known to Exxon. Despite completing an alcohol treatment program, Hazelwood had relapsed, and on the night of the disaster, he had consumed at least five double vodkas before the ship sailed. Two hours into the voyage, Hazelwood inexplicably left the bridge during a critical maneuver, leaving an unlicensed third mate in charge. The ship failed to make a necessary turn and ran aground. Tests showed Hazelwood had a blood-alcohol level of .061 eleven hours after the spill. Exxon spent $2.1 billion in cleanup efforts and paid over $1 billion in settlements for environmental damage. The plaintiffs, who depended on Prince William Sound for their livelihoods, sued for economic losses. Exxon stipulated to its negligence and liability for compensatory damages, and the jury found both Exxon and Hazelwood reckless, awarding $507.5 million in compensatory damages and $5 billion in punitive damages against Exxon.
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