Exxon agrees to pay out 75% of Valdez damages

Issues

Exxon Mobil agreed to pay out 75% of a $507.5 million damages ruling to settle the 1989 Exxon Valdez oil spill off Alaska, the Anchorage Daily News reported on Tuesday.

Citing both Exxon and the plaintiff’s lawyer, the Anchorage Daily News said the oil giant will release about $383 million for distribution to the nearly 33,000 commercial fishermen and others, who sued Exxon after the worst tanker crash in US history.

Exxon Mobile took a $290 million charge in the Q2 to account for a US Supreme Court ruling in June that threw out an earlier $2.5 billion damages award against the company and lowered the award to $507.5 million. The deal will allow fishermen and other plaintiffs to be paid a chunk of the damages as soon as October with a final payout schedule expected to be hammered out this week, the newspaper said.

The Exxon Valdez spilled some 34,000 tons of crude oil in the costliest accident of its kind. The clean up alone cost around $2.5 billion. The two sides still disagree about whether Exxon owes interest on the $507 million award, which would bring the final figure to $1 billion, according to plaintiff’s lawyers. There is also debate over another $70 million, according to the Anchorage Daily News.

David Oesting of Anchorage, the lead attorney for the plaintiffs, and Exxon were not immediately available for comment. While the US Supreme Court ruled on the subject, the justices sent the case back to the lower court to handle the final settlement of the $507.5 million award, which the Court said was the maximum damages available to the plaintiffs. (Reuters)

ADVERTISEMENT

Századvég raises GDP forecast to 7.8% Analysis

Századvég raises GDP forecast to 7.8%

Opposition parties to begin PM candidate primaries Elections

Opposition parties to begin PM candidate primaries

New editor-in-chief at Betone Studio Appointments

New editor-in-chief at Betone Studio

Budapest leaders make public transport free for under-14s City

Budapest leaders make public transport free for under-14s

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.