Exxon Dodges $3.5B Bullet In Royalty Dispute

Law360, New York (November 2, 2007, 12:00 AM EDT) -- The Supreme Court of Alabama has reversed a jury's 2003 decision to make Exxon Mobil Corp. pay $3.5 billion in punitive damages in a dispute centering on royalties from offshore natural gas wells, holding that the question of whether Exxon had engaged in fraud never should have gone to a jury.

The state supreme court's decision, which came down Thursday, reversed the judgment in favor of Alabama on the fraud claim, but it also affirmed a $51.9 million compensatory damages award against Exxon.

The ruling was...
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