In a landmark ruling sure to have lasting implications for corporate law, the Supreme Court has decided in favor of setting limits to punitive damages in relation to compensatory damages by reducing the amount of Exxon’s fines for the Valdez spill from what was $5 billion to $500 million. Punitive damages, ordered in addition to compensatory damages which help make a situation right financially, are a favored method of punishing large corporations of particularly egregious behavior and were ordered against Exxon due to the shocking nature of the circumstances surrounding the spill. more »