Last week Exxon Mobil announced it had beat its own earnings record to amass the largest corporate profit in U.S. history — $40.6 billion in 2007.
So that’s what crude-oil prices around $100 a barrel will get you. Not bad.
The Associated Press says that $40 billion is enough money to buy a fill-up for every registered car, truck and SUV in America — four times — at $3 a gallon.
But that’s a silly proposition, since Exxon Mobil doesn’t owe us gas guzzlers a thing.
Who they do owe, however, are the 32,000 remaining commercial fishermen, cannery workers, landowners, Indian tribes, local governments and businesses whose livelihoods were hurt by the 1989 Exxon Valdez oil spill along Alaska’s coastline. Exxon continues to fight paying $2.5 billion in damages, a figure that was reduced from $5 billion. Lawyers for the plaintiffs say that more than 20 percent of their clients have died during the more than decade-long legal appeal.
Meanwhile, Washington Attorney General Rob McKenna and Maryland Attorney General Doug Gansler announced last week that 32 other states have joined Washington and Maryland in signing an amicus brief in the case. The brief was filed with U.S. Supreme Court, which will hear the case on Feb. 27.
The brief argues that since 48 states allow punitive damages, federal maritime law should hold corporations accountable for recklessness occurring on the water to the same extent that state law holds them accountable for land-based misconduct.
The brief also contends that the court should reject Exxon’s argument that the federal Clean Water Act precludes federal maritime law from providing for punitive damages.
Exxon also argues that it shouldn’t be held responsible for the actions of one its captains, if Exxon didn’t have a direct role in the captain’s behavior, and the behavior was contrary to company policy. A company isn’t responsible for the behavior of its employees? Since when? (Well, since a jury ruled Exxon Valdez Capt. Joseph Hazelwood’s actions were negligent …)
Exxon says it has spent more than $3.5 billion in compensatory payments, cleanup payments and settlements. Well, it has just $2.5 billion more to go to make a gesture toward justice. A responsible company would accept its punishment, acknowledge that livelihoods were ruined by the worst oil spill in U.S. history, and move on. On the other hand, waging a years-long legal fight as working-class plaintiffs die off is a rather cold example of corporate greed.
We trust the Supreme Court will uphold the damages. It turns out Exxon can well afford to pay them, barely making them “punitive” at all.
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