'Money buys you justice'
Cordova rocked by news

JOY LANDALUCE
Joy.cdvtimes@ctcak.net

June 25, 2008 at 5:33PM AKST

The U.S. Supreme Court’s decision on the Exxon Valdez case was far below the Cordova plaintiffs’ expectations.

Disappointment, anger and some resignation greeted the arrival in Cordova of the news Wednesday that the seemingly endless battle over punitive damages had been resolved.

The appeal over $2.5 billion in punitive damages is the final legal case remaining from the March 1989 spill of 11 million gallons of crude oil in Alaska’s Prince William Sound.

U.S. Sens. Lisa Murkowski and Ted Stevens and Rep. Don Young, R-Alaska, noted immediately after the decision that they were “extremely disappointed that the Supreme Court has chosen to reduce the punitive damages amount from $2.5 billion to $507.5 million.”

“This ruling adds insult to injury to the fishermen, communities and Alaska Natives who have been waiting nearly 20 years for proper compensation following the worst environmental disaster in our nation’s history,” they said.

Rochelle van den Broek, executive director of the Cordova District Fishermen United, characterized the result as “bittersweet.”

“The U. S. Supreme Court decision marks the end of almost 20 years of deferred justice in the Exxon Valdez oil spill case,” van den Broek said.“We were collectively hopeful that the ruling would demonstrate that Exxon Mobil is not above the law, and corporate negligence particularly on this extreme level is a crime worthy of punishment — however the reduction is a slap in the face for the 32,000 plaintiffs that have waited 20 years for this day to arrive.”

“Based on Exxon’s profit recordings, the original award amount of $2.5 billion would have been equal to less than two weeks of profit for the oil giant,” van den Broek said.

“The reduced amount of $500 million that is now payable by Exxon is certainly not the retribution we were seeking in this case, as we are still living with the damage caused by their reckless management and will continue to do so for decades. A day’s profits for the oil giant is hardly punishment,” she said.

“CDFU is disappointed that the award was overturned, but one positive aspect is that our community can finally start the healing process. Now it is time to move on from this terrible chapter in Cordova’s history and continue working towards rebuilding what has been lost as a result of the spill,” she added.

Van den Broek pledged that the fishermen’s group would “keep fighting for improved precautionary measures with oil transportation in Prince William Sound and the Copper River.”

“I am disappointed that the majority of the Supreme Court vacated the well-reviewed decision of the appellant court,” Cordova Mayor Tim Joyce said.“I believe the Supreme Court has now opened the door for large corporations to act recklessly since they know that the penalty for doing so will not be financially troublesome,” he said.

“What this court has said to corporate America is, ‘If you do harm to the American public we will slap your wrist, but we are not going to take you to the woodshed for a good spanking,’ ” Joyce added.

“The court, by setting a 1:1 ratio, has now let corporations start making calculations on the amount of monetary risk they can take over the cost of prevention,” Joyce said.

“If the risk factor is unknown, such as the amount of potential punitive damages, it forces better decision making and judgments that will error on the side of caution.”

Cordova’s mayor also found some good news:“The Supreme Court did affirm that punitive damages are allowed and reasonable under maritime law. It also affirmed that the Clean Water Act did not dissolve any rights for legal action including punitive damages,” he said.

“I happen to agree with the minority opinion in this case that Congress should be setting tort limits and not the court. Once again, as we have seen in the past the court system is creating laws instead of interpreting laws.”

Rep. Bill Thomas, R-Haines, wanted Exxon plaintiffs to know that he is extremely disappointed in the Supreme Court’s decision.He said he would contact the governor on Wednesday to discuss the possibility of forgiving any state loans that any fishermen have defaulted on due to the Exxon disaster.

Cordovans vented their emotions on hearing the news from Washington, D.C., during interviews at the Cordova Café, on Main Street, at the Front Door Store and the Ilanka Cultural Center, the CDFU office and the Net Locker, as well as via e-mail.

“Money buys you justice,” Chenega Native Joe Kompkoff said.Fisherman Bob Bouknight wanted to send a message to the folks in Bristol Bay.“Note what Exxon has done to us.

Be careful with the Pebble Mine, they will do the same to you,” Bouknight said.

Fisherman Mike Maxwell felt that the decision was just plain wrong.

“Take a look at our country — this is a slam to the blue-collar worker,” Maxwell said. “It is all about the rich and big corporations. It was just plain wrong to reduce the amount again.”

Prince William Soundkeeper executive director Jennifer Gibbins saw this as a huge win for corporate America.

“From a community standpoint, the decision is heartbreaking. From a legal standpoint, the future implications are very concerning,” Gibbins said.

“It appears that the court was deadlocked on the central question of whether or not a corporation can be held liable for the reckless conduct of a captain at sea,” said Gibbins, a leader of the Web-based “The Whole Truth” campaign, designed to raise awareness of Alaska’s lingering post-spill problems.

“In this specific case, Justice (Samuel A.) Alito (Jr.) had to recuse himself due to the fact that he owns Exxon stock. If this question were to come to the court through another case where all justices were sitting on the bench, there is the concerning possibility that a resulting decision might not protect the right of citizens over corporate bottom line interests,” she said.

“Good business is important to the livelihood of every community. However, the possibility of punishment through damages is an important tool in protecting the right of citizens when business fails to act responsibly on its own.

“So, in some respects this decision provides utterly disappointing closure and in other respects, looking to the future, the specific issue has not been addressed.”

Riki Ott, author of “$Sound Truth/Corporate Myth” agreed that corporate America was dancing in the street.“No liability, no problem,” Ott said. “This is sending the wrong message to corporate America. Congress can overturn this decision.”

Patience Faulkner Andersen, president of the Prince William Sound Regional Citizens Advisory Council, said that she has spoken to a dozen people who are thankful that the court supported Sound fisherman and now there is closure.

“I was initially numbed and shocked,” Andersen said. “We did receive punitive damages, which is a precedent. Now there is closure with a one-to-one punitive compensation, which we will spend very wisely.”

“I think that the reduction in the punitive damages is terrible,” Leona Olson said, interviewed at the Ilanka Cultural Center.

Barbara Olson, her sister, also remembered the plaintiffs that died unsettled, estimated at 20 percent of the total.

“Look at how many people have passed away,” Olson said.

Subsistence claim recipient Virginia Lacey stated that she was going to be happy with what she got.

“I never expected anything,” Lacey said, reflecting a fatalistic outlook.

Ilanka Cultural Center art director Mary Babic was glad it was over.“I am very disappointed in the decision and the reduction of the punitive damages,” Babic said.

Fisherman Gary Thorne was bitter, as he recalled seeing the herring fishery disappear.

“They took away part of my livelihood. This is just another slap in the face,” Thorne said. “It doesn’t matter who was driving the boat, it was their boat and it was their oil. The herring have vanished.”

“After all these years, I think it sucks,” Cordovan Tudy Johannessen said of the decision.

“It’s over, life goes on,” said fisherman Jim Johnson, born in Cordova.Native Village of Eyak Tribal Council member Jack Hopkins has been hoping for justice.

“We are used to it,” Hopkins said of the disappointment, part of tough breaks for Alaska’s first people.

Debbie Temmerman at the CDFU office spoke to the sadness of the day.

“It is not fair. I feel sorry for all the plaintiffs,” Temmerman said.Fisherman Lynn Potter stated he was not surprised with the result.“Government of the corporation, for the corporation, by the corporation,” Potter said.

“I will be eating more canned salmon, at least its good canned salmon,” he said, indicating a diet of bread and belt-tightening in wake of an adverse decision.

Cordova native Pam Smith said her initial response was that blatant disregard was shown to the plaintiffs as a whole.

“How would Exxon feel if someone blew up their world,” Smith said. “It is not a money issue, it is a universal law, it applies to everyone.

Still, she concluded, “We need to embrace the pain of this decision, we cannot continue to blame, we need to move forward. Let it go, move forward.”

Pip Fillingham, co-owner of Copper River Seafoods, said he had barely had time to react to the news.

“I am so busy with the present,” Fillingham said. “A lot of fish are coming in from the Sound. It is a very positive thing on a very negative day.”

“It is going to be squat,” said Sue Laird, co-owner of Prime Select Seafood, of the checks coming from Exxon.

Prime Select Seafood marketing assistant Kate Boehm stated this is an insult for the whole country.

“A complete and utter travesty,” Boehm said. “The Supreme Court is owned by Big Oil. Justice in our country no longer exists.”

U.S. Senate candidate Mark Begich said he was also angered by the ruling.

“The thousands of Alaskans whose lives were devastated by this disaster are hurt, once again, by this ruling,” the Democratic mayor of Anchorage said.

“What we’re seeing today is another example of how Washington is out of touch with real people. The justices have sided with corporate America rather than with Alaska families who have suffered for nearly 20 years.”

Begich added that while the livelihoods of thousands of Alaska fishermen and others were destroyed by the spill, Sen. Ted Stevens has continued to work to serve the interests of big business, rather than put pressure on Exxon to settle the lawsuit or drop its appeals.

“Sen. Stevens continues to show he works hard for special interests, but where has he been when it comes to doing what’s right for Alaskans?” Begich said.

With Exxon’s net income last year of more than $40 billion, Begich called on the oil company to pay up within 30 days.

“No more delays. Exxon needs to write those checks today,” he said.

The 32,677 plaintiffs in the case have been waiting for their compensation since 1994, when a jury in Anchorage returned a $5 billion punitive damages award against Exxon Mobil Corp. for its role in the spill.

The company has been appealing the verdict since then. In 2006, the 9th U.S. Circuit Court of Appeals cut the award to $2.5 billion. Exxon appealed that decision to the Supreme Court, which heard oral arguments in the case on Feb. 27.

Wall Street is expecting the oil giant to report $121 billion in revenue for the quarter, about 40 percent higher than a year ago. Wall Street analysts now expect Exxon’s revenue to top $550 billion in both 2008 and 2009. 

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Joy Landaluce can be reached at (907) 424-7181.