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Alabama Supreme Court Reverses $3.5 Billion Punitive Award Against ExxonMobil

Nov 2, 2007   Birmingham, AL

The Alabama Supreme Court has reversed a 2003 lower court judgment awarding the State of Alabama $3.5 billion in punitive damages in its long-running dispute with ExxonMobil Corporation over the payment of royalties from natural gas production in Mobile Bay. In its November 1 opinion, the court ruled, by an eight to one margin, that the dispute was simply over the meaning of a contract, and that the State had failed to prove the elements of any tort claim which would support an award of punitive damages.  In addition, the court ruled for ExxonMobil as a matter of law on several of the contract issues, reducing the compensatory award from $63.8 Million to $53.9 Million. Lightfoot partners Sam Franklin and Chris King argued the case in the Alabama Supreme Court on behalf of ExxonMobil.   

 

For more information on ExxonMobil v. State, visit Lightfoot's appellate blog, Alabama Appellate Watch

 

 

Practice areas mentioned:
Appellate