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ARTICLE · 26 JUNE 2008

Supreme Court Docket Report – Decision Alert – June 25, 2008

Mayer Brown
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In an important decision that could put the brakes on the run-away punitive awards that have plagued the business community for the last two decades, the Supreme Court held today that the maximum permissible ratio of punitive to compensatory damages under maritime law is ordinarily 1:1.

United StatesLitigation, Mediation & Arbitration
David Gossett
David Gossett
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Originally published June 25, 2008

Keywords: Exxon Shipping Co., punitive awards, Baker, Exxon Valdez, Justice Stevens, Justice Ginsburg, Justice Breyer, maritime law, Clean Water Act, American Petroleum Institute, American Chemistry Council

October Term 2007

Today the Supreme Court issued a decision, described below, of interest to the business community.

Exxon Shipping Co. v. Baker No. 07-219 (previously discussed in the October 29, 2007 Docket Report).

In an important decision that could put the brakes on the run-away punitive awards that have plagued the business community for the last two decades, the Supreme Court held today that the maximum permissible ratio of punitive to compensatory damages under maritime law is ordinarily 1:1. Although nominally limited to punitive damages under federal maritime law, the effect of today's decision is likely to reach far beyond maritime

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