Sorkin writes that jury-awarded damages could hit the hundreds of billions of dollars—enough to capsize BP. “Beyond Petroleum,” anyone? But he’s good to remind us of the Supreme Court’s Exxon Valdez ruling:
That’s not to say that BP won’t fight a huge judgment against it. After the Exxon Valdez spill, Exxon fought a $5 billion fine for punitive damages for two decades. It won. The fine was cut down to $4 billion, then to $2.5 billion. The case eventually made it to the Supreme Court, which found that Exxon’s actions were “worse than negligent but less than malicious,” and vacated the fine. The judgment limited punitive damages to the compensatory damages, which were calculated as $507.5 million.
The Court has only gotten more corporate-friendly since then.