Exxon Shipping Co. v. Baker

Exxon Shipping Co. v. Baker was a Supreme Court case concerning the 1989 Exxon Valdez oil spill in Alaska. The court addressed whether Exxon should pay punitive damages to residents affected by the spill. The justices ultimately decided to reduce the punitive damages awarded to the plaintiffs, emphasizing the need for such damages to be proportional to the actual harm caused. This case is significant for shaping how courts handle punitive damages, particularly in environmental disasters, balancing the need for accountability with the financial implications for companies.