Q: What is the EQSF? Is the EQSF affiliated with Exxon Corporation?
A: The "EQSF" is the Exxon Qualified Settlement Fund. It was established to distribute any settlement monies received by All Plaintiffs from the Exxon Valdez Oil Spill litigation. The EQSF is NOT affiliated with Exxon Corporation. Judge Holland approved All Plaintiffs' request to establish the EQSF as a means of distributing to plaintiffs monies recovered in the litigation from Exxon. Judge Holland appointed plaintiffs’ attorney Lynn Lincoln Sarko, of the Keller Rohrback L.L.P. law firm of Seattle, as the Administrator of the EQSF.
Q: What is the amount of the punitive damages award?
A: $507.5 million, as ordered by the United States Supreme Court.
Q: Did Exxon pay to plaintiffs all of the $507.5 million punitive damages awarded by the Supreme Court?
A: No. Exxon held back $70 million that it claims plaintiffs must pay to it as “costs”. In addition, Exxon withheld approximately $54 million owed to it pursuant to the “Seattle Seven” litigation. Thus, plaintiffs received from Exxon a total of approximately $383 million.
Q: When will the issues of interest and costs be decided?
A: Briefing is complete. Oral argument before the Ninth Circuit is scheduled for December 15, 2008. The Ninth Circuit will issue a written opinion sometime in the months to follow. There is no deadline for the Ninth Circuit to issue its decision on interest and costs. Links to the Ninth Circuit briefs can be found in the “News” section of this website.
Q: If the plaintiffs recover some or all of the interest and costs being litigated in the Ninth Circuit, will that money be distributed to plaintiffs?
A: Yes. Any additional monies recovered from Exxon will be distributed to claimants with a valid claim. Depending on when and if such recoveries are made from Exxon, those additional recoveries will be distributed to claimants in another distribution (if they have already received their distribution of punitive damages) or along with their punitive damages distribution.
Q: How much money will I receive from the punitive damage award?
A: Exact amounts are not calculated until we prepare a request for distribution to submit to the court. Payments are not issued until we receive court approval.. Individual shares of punitive damages are based on the shares allocated to the more than 50 claim categories, and each individual's final percent share of that particular claim category.
Q: How were shares of punitive damages determined? Can those shares be changed?
A: Shares are calculated within each claim category pursuant to the Plans of Distribution approved by Judge Holland. The Plans of Distribution are final orders that cannot be changed. As claims are processed, each claimant receives a final percent share letter explaining how the claimant's share was calculated and setting forth rights of appeal. Once those rights of appeal have been exercised or expire, final percent shares cannot be changed.
Q: When will I receive my share of the punitive damages award?
A: We anticipate seeking court approval for distributions of punitive damages on a rolling basis. The first distribution request was for claimants in 13 claim categories whose claims were not affected by liens, levies, or assignments. As the Administrator said in his November 26, 2008 press release:
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Plaintiffs' counsel in the Exxon Valdez Litigation announced today that the process of distributing punitive damages money to claimants who have no outstanding liens in 13 claim categories (oiled fisheries, Native subsistence , and the Prince William Sound Fund) consistent with the Judge Russell Holland's November 24 order is now underway, and should be completed by mid-December. "Barring some unforeseen event," we intend to complete this distribution round by December 15," said Lynn Sarko, Exxon Qualified Settlement Fund Administrator. The Fund is the legal entity that is charged with distributing monies from the Exxon Valdez oil spill litigation to claimants.
For those claimants who have already signed up to receive funds by direct bank deposit, the next round of payments is expected to be made on or about Friday, December 5.
For those who will receive distributions by check, they should be mailed no later than Monday, December 15.
Though the cutoff date has passed for claimants to request "direct deposit" for the current round of distributions, plaintiffs' counsel encourage all claimants to request direct deposit for future rounds as it results in quicker payments, and is less costly. About one quarter of the claimants have already applied to participate in the direct deposit program.
"Claimants who are listed in our October 31 application to Judge Holland now have an accurate estimate of the amount they will soon receive, and will be able to do appropriate year end financial and tax planning," said Sarko. Because Judge Holland has authorized an attorney fee of 22.4%, claimants should receive 77.6% of the gross amounts that are listed in court documents. The documents listing the gross distribution amounts for each claimant can be viewed on the Anchorage Daily News web site, and on the EVOS web site, www.exspill.com. Thus, someone whose claim is listed at $10,000 should expect a check for $7,760.
Efforts will be made in early 2009 to distribute punitive damages money to claimants in the 13 categories who have active liens, and to claimants in the remaining 39 claim categories.
"We tried to distribute as much money as possible to the largest number of claimants in 2008," said Sarko. "We are very pleased that Judge Holland has authorized us to begin the punitive damage distributions. We understand that many claimants are in desperate need of these funds in these difficult economic times."
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Q: What is “Exhibit C” and why am I not listed?
A: “Exhibit C” is the list of people in the 13 claim categories for which the first punitive damage distribution application was filed with the Court and whose claims are not encumbered by a lien, levy, or assignment. You may also have not been included on Exhibit C if you have a bad address in our system, if you requested voluntary tax withholding, if do not have a sufficient W-9 form on file, or if you are missing estate documentation. If you have an approved claim in one of those 13 claim categories, but your name does not appear on Exhibit C, your claim will be paid pursuant to whatever lien, levy, or assignment is affecting your claim when the Administrator applies to the Court to make payments to all such claimants in early 2009. If you have a claim in one of the other 39 claim categories, your claim will be paid when the Administrator applies to the Court to make payments to all claimants in those 39 claim categories, which he will do on a rolling basis in early 2009. Applications to the Court to make punitive damage distributions will be posted in the “News” section of this website as they are filed with the Court.
Q: How will the punitive damage awards be distributed?
A: The EQSF will issue checks, unless a claimant has elected to receive his or her award by direct deposit to a checking or savings account. To learn more about the EQSF's direct deposit program, click here.
Q: Why have I not received confirmation of my direct deposit status?
A: Direct deposit forms are processed on a rolling basis as we receive them. Please note, however, that we “freeze” the processing of new direct deposit forms sufficiently in advance of a payment distribution to ensure that we have enough time to complete the process of testing each direct deposit account. Thus, it is important that claimants not wait until the last minute to send in their direct deposit forms, as we cannot guarantee that we will have sufficient time to complete and test new direct deposit accounts in advance of issuing payments. Claimants who have submitted a direct deposit request that cannot be processed and tested in time to make a direct deposit distribution will, instead, receive their claim payment via a mailed, paper check.
Q: Are punitive damages taxable?
A: Yes. The EQSF cannot give tax advice. However, the EQSF has been advised that the entire amount of your punitive damage award must be reported as taxable to the IRS. You should check with your accountant or tax adviser.
Q: Why have I not received any recent mail from the EQSF?
A: Either we have had no reason to mail anything to you, or your mailing address is incorrect. If you have recently moved or changed where you receive your mail, please contact the EQSF to update your mailing.
Q: I received a check for zero dollars. Why? Does that mean I will not receive any more money?
A: Typically, checks for zero dollars are issued when a claimant has been overpaid from a prior claims distribution and/or is subject to a lien. Assuming All Plaintiffs collect enough in punitive damages to satisfy your prior overpayment or lien, you should receive an additional award.
Q: Is it too late to file a claim?
A: Yes. The deadline for filing claims in each of the more than 50 claim categories has expired.
Q: What will happen to my claims if I die?
A: In general, your claims should pass to your estate. For more information on estates, click here. You are strongly encouraged to consult with an estate planning lawyer of your choice.
Q: Does the EQSF require documentation to record a name change due to marriage or divorce?
A: Yes, for information on how to change your name, click here.