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Valdez rehearing denied
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January 11, 2002: 7:17 p.m. ET
Appeals court denies rehearing of Exxon Valdez oil spill case.
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NEW YORK (CNN/Money) - A federal appeals court denied a motion to rehear the 1989 Exxon Valdez oil spill case and the case will return to Alaska for a reduction of the $5 billion punitive damages award imposed on Exxon in 1994.
Exxon Mobil Corp. said Friday it was advised by the Ninth U.S. Circuit Court of Appeals that the court denied a plaintiff's motion to rehear the case before the full Ninth Circuit Court.
On Nov. 7, the three-judge appeals court panel ruled that while some damages were warranted, the award of $5 billion was too much.
The case will now be returned to federal court in Anchorage, Alaska, with orders to reduce the award to "an amount consistent with constitutional limits," ExxonMobil (XOM: Research, Estimates) said.
Plaintiffs in the case include Alaska property owners, fisherman, citizens, and others hurt by the nation's worst oil spill.
ExxonMobil said it has already spent $2.2 billion for spill cleanup and voluntarily began paying damage claims immediately after the accident.
Shares of ExxonMobil fell 89 cents to $38.50 on the New York Stock Exchange Friday. 
-- from staff and wire reports
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