A divided U.S. Supreme Court yesterday reduced the $2.5 billion punitive damages award in the 1989 Exxon Valdez oil spill disaster to $500 million. In a 5-3 ruling the justices decided that punitive damages must be “reasonably predictable” and may not exceed what Exxon Mobil has already paid to compensate plaintiffs for economic losses. For more on this story, check out Insurance Journal’s June 25 online article by reporter James Vicini. Further I.I.I. information on the liability system is available online.