PROUD - THE ADVISOR
Mar 1, 2001
By David Bronner - Director, Alabama Retirement System
From the Advisor - Monthly Newsletter to the Retirement System of Alabama
The jury’s decision last December to award Alabama $3.5 billion
in a civil judgment against Exxon made me proud of the Alabamians who
took the initiative to attack those who try to take advantage of our great
state. Alabamians are lucky and blessed to have citizens who will take
the lead to accomplish such actions.
The royalty dispute had its beginnings when a conscientious state employee,
Conservation Department attorney Bob Macrory, drew up the lease agreement
after serious research and assistance from other oil-producing states.
Then, five years ago, former Governor Fob James and Conservation Commissioner
Jim Martin hire auditors to scrutinize the Exxon oil payments to the state.
However, the Exxon judgment would never have happened without Governor
Don Siegelman and Attorney General Bill Pryor’s leadership and support.
Governor Siegelman employed the Mobile law firm of Cunningham, Bounds,
Yance, Crowder and Brown to do the heavy lifting. This gave Attorney John
T. Crowder, my law school classmate, the high-risk, high-reward opportunity
to fight the Goliath of the oil industry as Exxon’s $17.7 billion
in net income for 2000 proves.
After two years, the firm found not one, not two, but nine “smoking
guns.” When the Chairman of Exxon thought Alabamians were too dumb
(he said “inexperienced”) to catch a thief, he greatly underestimated
the talent and intelligence of the Alabamians involved. The chairman even
went so far as to state that even if a judgment were place against Exxon,
it would only cost them a little interest. The jury certainly proved Exxon
wrong with their $3.5 billion verdict.
Clearly, Exxon ignored what was legal, ethical and the right thing to
do when the verdict was so large and Alabama was only claiming $87.7 million
in compensatory damages. This case is not a simple contract dispute but
regards a big corporate thief.
Jury awards are often reduced on appeal by the judge or appellate courts,
yet this judgment should withstand any appeals to state or federal courts.
This case is a warning to businessmen that they have nowhere to hide when
abusing the taxpayers and citizens of this great country.
As I wrote last month, there are some “good politicians in Alabama.