Limited Punitive Damages Under Exxon Valdez Case
For the first time in U.S. jurisprudence, the Supreme Court Supreme Court has approved an award of punitive damages under maritime law.
The Supreme Court has established that as a general rule, punitive damages in general maritime law cases should be in the range of 0.65:1, with a maximum of 1:1. What will the impact be on other cases involving punitive damages and statutory causes of action under maritime law?
Interestingly, the Supreme Court was divided on the important issue of whether under maritime law, a ship owner may be vicariously liable for the acts of a managerial employee such as a vessel’s master. The Supreme Court’s opinion leaves the decision of the Ninth Circuit that there is such liability intact, but does not overrule contrary decisions in other circuits.
The Supreme Court's opinion may be read in full at:
http://www.supremecourtus.gov/opinions/07slipopinion.html
