EXXON AWARD SHOWS VALUE OF JURY TRIALS
Dec 28, 2000
Montgomery Advertiser
The recent $3 billion punitive damage award against Exxon dramatically
demonstrates the need for jury trials. It is also a powerful rebuttal
to those trying to defend binding arbitration.
In arbitration, discovery procedures are prohibited and punitive damages
are rarely awarded. But it was discovery-produced company documents that
convinced the jury that Exxon had defrauded Alabama. And it is the huge
punitive damage award that will hurt Exxon and deter them from future
misconduct. Had the case been arbitrated, the documents would not have
surfaced and punitive damages would not have been awarded.
According to the documents, Exxon calculated that even if it were caught
underpaying Alabama, it would only have to repay what it owed. It also
counted on being undetected by Alabama's notoriously weak regulatory agencies.
Exxon's twisted logic is what drives many businesses to conclude that
they have nothing to lose by cheating Alabamians, and the widespread use
of binding arbitration simply makes their job easier. Only a jury trial
and the prospect of punitive damages can deter them.
Some special interests deride trial lawyers, but it was a trial lawyer
who won the case against Exxon. And if Alabama can have its day in court
so should its citizens.
Bill Chappell