In the Exxon Valdez case, the Supreme Court limited punitive damages in maritime cases to no...
In the Exxon Valdez case, the Supreme Court limited punitive damages in maritime cases to no more than the compensatory damages awarded in the same case. In cases that do not involve maritime law, the ratio is usually 9-to-1. Which is the better guideline? Why?
Homework Answers
In the Exxon Valdez case, it was mentioned by Supreme Court that “punitive damages or exemplary damages” granted to the victims of Exxon Valdez oil spill (as mentioned in 5-3 decision). The amount was reduced from $2.5 billion dollar to the $500 million dollar. The overseas policy was undermine while considering the punitive damages. It was streamlined that these damages should be lesser than what was paid by Exxon Valdez in order to re-compensate the economical losses. A 1-1 ratio among compensatory and exemplary damages (mostly in maritime cases) is the good upper limit when irresponsibility is shown rather greater liability in case of intentional conduct. The 9-1 ration may offer better outcomes.
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