Exxon Found Liable: Accountability After Valdez Spill

A jury in Anchorage, Alaska, found Exxon and Captain Joseph Hazelwood reckless on June 13, 1994, for the March 24, 1989, oil spill in Prince William Sound that released approximately 11 million gallons of crude oil across 1,300 miles of coastline. The verdict opened the door for victims, including fishermen, Native Alaskan communities, and landowners, to seek $15 billion in punitive damages. The environmental catastrophe had killed an estimated 250,000 seabirds, 2,800 sea otters, 300 harbor seals, and billions of salmon and herring eggs. The Exxon Valdez, a 987-foot tanker, struck Bligh Reef in Prince William Sound shortly after midnight. Hazelwood, the captain, had left the bridge and placed an inexperienced third mate in command while the vessel navigated a channel known for icebergs. Blood tests conducted hours after the grounding showed Hazelwood had been drinking, though his actual impairment at the time of the accident remains disputed. Exxon's lawyers argued that Hazelwood's drinking was a personal failing, not corporate negligence. The jury disagreed. Testimony revealed that Exxon knew Hazelwood had a history of alcohol problems and had been through rehabilitation, yet returned him to command of a supertanker. The recklessness finding was crucial because it enabled punitive damages far exceeding the compensatory amounts. The jury initially awarded $5 billion in punitive damages in a subsequent phase of the trial. Exxon appealed for nearly two decades. The Supreme Court ultimately reduced the punitive award to $507.5 million in 2008, roughly $15,000 per plaintiff. Prince William Sound's herring population, which collapsed after the spill, has never fully recovered. Crude oil from the Valdez can still be found in sediments beneath the surface of some beaches.