Shell Oil Company, et al. v. Hebble, et al.

Case Updates

NCLC urged the Supreme Court to decide whether a punitive damages award that was 71 times larger than the compensatory damages violates the Due Process Clause. In 2008, an Oklahoma jury levied $53 million in punitive damages against Shell for allegedly violating a fiduciary duty owed to trustees of royalty payments on oil and gas leases in the state. In its brief, NCLC argued that the lower court disregarded instructions from the Supreme Court regarding the appropriate size for a punitive damages award. NCLC noted that the case provides an important opportunity for the Supreme Court to clarify whether certain costs, such as attorneys' fees and interest, should be factored into compensatory awards.