This is really unbelievable. With Exxon's (ever increasing) profits, they could pay off the $500 million in just 4 days. While this is certainly horrible in light of the environmental effects this particular spill had (after all, it was the largest one in history), in the grand scheme of the ruling by the Supreme Court it is a huge win for irresponsible corporations.
Exxon-Mobile is one of the most unethical and irresponsible U.S. companies. In order to assure its continued financial success, for example, Exxon (and other oil companies) openly denounce global warming and other environmental problems through supposed 'environmental research groups' that they fund. What this ruling means for Exxon and companies like it, is that punitive damages are essentially no longer a bother.
The Court imposed a standard saying that, at least in maritime cases, a ratio of one-to-one for the two types of damages that can be sought by plaintiffs (that is, "punitive damages, which are meant to punish and deter, and compensatory damages, which aim to make plaintiffs whole") is appropriate and just both for the plaintiffs and the defendants. In other words, the amount of damages paid to compensate the plaintiffs (in this case, Alaska Natives, landowners and commercial fishermen) and the amount paid in punitive damages are now equal with this new standard. Exxon has paid $507 million (again, an amount they make in four days) to compensate the people this spill affected to the tune of $15,000 each. Hence, based on the new ratio standard, Exxon should have to pay no more than $507 million in punitive damages.
If these companies are ever going to behave in a responsible and ethical fashion we need to hit them in the only language they understand - dollars and cents. Without the threat of a potentially large sum of punitive damages in light of their actions, companies are essentially free to behave in whatever ways they want - free to pollute, to destroy, and to propagate whatever lies and propaganda serves their interest.
Justice John Paul Stevens, who wrote in dissent, put it this way: “In light of Exxon’s decision to permit a lapsed alcoholic to command a supertanker carrying tens of millions of gallons of crude oil through the treacherous waters of Prince William Sound, thereby endangering all of the individuals who depended upon the sound for their livelihoods the jury could reasonably have given expression to its moral condemnation of Exxon’s conduct in the form of this award.” And it really is this simple. Companies that extort the environment and behave as Exxon-Mobil does do so for profit. Nothing more, nothing less. 5 billion was the appropriate amount to fine Exxon simply to keep the company ethically in check and to set an example to others that this kind of irresponsibility is simply unacceptable. Without this ethical check, corporations have gained yet another advantage in that they are now even less accountable for their actions.
1 comment:
great blog
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