Exxon Mobil to pay nearly $7 billion in spill damages

ANCHORAGE, Alaska -- A federal judge on Wednesday ordered Exxon Mobil Corp. to pay about $6.75 billion to thousands of Alaskans affected by the 1989 Exxon Valdez oil spill. The ruling is the latest of several damage awards in the case over the past decade -- the result of successful appeals in federal court by Exxon. The company plans to appeal again. Wednesday's ruling by U.S. District Judge Russel Holland ordered the Irving, Texas-based company to pay $4.5 billion in punitive damages and about $2.25 billion in interest. The money is to go to 32,000 fishermen, Alaska Natives, landowners, small businesses and cities affected by the 11 million-gallon spill in Prince William Sound.

"We have now closed the trial court doors for the last time in this litigation after 15 years," said David Oesting, lead attorney for those who sued. "We're definitely on track to the end of the entire dispute."

The judge had been ordered by the 9th U.S. Circuit Court of Appeals court to reconsider the damages awarded in an earlier ruling in light of a U.S. Supreme Court decision last year about punitive damages.

"This ruling flies in the face of the guidelines set by the appeals court," company spokesman Tom Cirigliano said.

He said the 9th Circuit has twice vacated Holland's decision in the case.

Holland reduced the Exxon punitive damages award to $4 billion a year ago after a three-judge panel of the 9th Circuit sent the original $5 billion verdict back, saying it was excessive.

Attorneys from both sides argued that the Supreme Court case supported their damages claims.