October 11, 2005 – Supreme Court Rejects Appeal for Lost Profits for Oil Company
October 11, 2005
Exxon Mobil and Saudi Basic Industries Corp. (SABIC), two oil companies, entered into a joint venture and formed Yanbu Petrochemical Co. and Exxon Chemical Arabia. Exxon Mobil brought suit against SABIC for allegedly engaging in secret profit markups. A Delaware court awarded Exxon Mobil $92.8 million in damages, representing the amount it was overcharged in the joint venture, and the court awarded an additional $324 million, representing lost profits. SABIC appealed to the high court to challenge the lost profits figure, arguing that the Delaware courts failed to properly consider a statement from the Saudi Arabian government on how its laws should have been interpreted.