Exxon Valdez Tanker Alaska Oil Spill – Baker v Exxon Class Action

Exxon class action concerning the oil spill from the tanker, Exxon Valdez, in Prince William Sound, Alaska, on March 24, 1989:

Baker v. Exxon is considered by many to be the longest and most complex class action case in American legal history. Shortly after the Exxon Valdez spilled her contents, multiple lawsuits were filed. These quickly consolidated into one and became certified as a class action.

Despite the fact that Exxon paid over $2.2 billion dollars immediately and another $300 million in settlements with private parties, and despite Exxon being sued by the state and indicted by the US government and paying another $1 billion in settlements, various private complaints were still unsettled.

In Baker v. Exxon, the plaintiff class consisted of 32,000 fishermen, Alaskan First Nations peoples, land owners and various other groups.

The plaintiffs alleged that the devastating oil spill caused by the oil tanker running aground resulted in the loss of millions of dollars for the fishing and tourism industries in that region. It was also alleged that the captain of the Exxon Valdez, Joseph Hazelwood, had a drinking problem and was intoxicated at the time of the accident. That allegation was never proven; however, Exxon attempted to implicate Captain Hazelwood nonetheless.

The plaintiffs were represented by Brian B. O’Neill of the law firm of Faegre & Benson. The defendant, Exxon, was represented by John F. Daum of the firm of O’Melveny & Myers.

The trial and appeals lasted for two decades and were heard by courts of various jurisdictions including the District Court in Anchorage Alaska, the Ninth Circuit Court and the US Supreme Court.

Exxon’s Appeals

Initially, the jury awarded the plaintiff class $5 billion in damages. That amount was reduced to $4 billion by the District Court after Exxon’s first appeal.  A second appeal resulted in the damages being increased to $4.5 billion and, after a third appeal to the Ninth District Court of Appeal, the amount of punitive damages was reduced to $2.5 billion. This amount, however, was further reduced to $507.5 million by the US Supreme court.

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