The Wall Street Journal (2/28, Tracy, Subscription Publication, 2.29M) reports that in a victory for Exxon Mobil Corp., the Maryland Court of Appeals has reversed more than $1 billion in punitive damages stemming from a February 2006 incident in which 26,000 gallons of gasoline leaked from underground storage tanks owned by the company in Jacksonville, Maryland. The gasoline flowed into a water aquifer that supplied drinking water to many residents and dozens of residents and businesses sued claiming they suffered due to dear of contracting cancer and lower property values. In 2011, a jury at the Circuit Court for Baltimore County awarded the plaintiffs $500 million in compensatory damages and $1 billion in punitive damages.

The AP (2/27) reports that the court “said that the Irving, Texas-based company could have done a better job communicating with residents during cleanup from the spill. But the court said plaintiffs didn't show clear and convincing evidence that Exxon intended to mislead anyone or that they were harmed by relying on any statements the company made.” The court also said “some residents were awarded money for emotional distress but didn't provide evidence their wells were contaminated. A few had contaminated wells but didn't show any injury linked to contaminated water. Some residents were improperly awarded money based on the fear that their property values would decline. Others got awards even though wells on their property were not found to be contaminated. The court also overturned jury awards in a case that involved about 90 households.”