Exxon verdict of $3.6 billion to be reviewed

A $3.6 billion verdict won by the state against Exxon Mobil Corp. goes before the Alabama Supreme Court on appeal Tuesday with the company arguing the judgment – bigger than the state’s General Fund budget – is unconstitutionally excessive.

The verdict, which could swell to $4.7 billion when interest and deferred payments are added, was the largest returned in America in 2003 and is a record in Alabama.

The state sued Exxon Mobil claiming it defrauded Alabama out of millions in offshore natural gas royalties.

But Exxon Mobil attorney David Boyd, of Montgomery, calls the verdict “astronomical” and contends the jury that heard the case was improperly influenced by news reports of the state’s budget woes at the time.

The interest in the case is so great that Gov. Bob Riley plans to attend the arguments before the Supreme Court Tuesday, said his communications director, Jeff Emerson.

After the Supreme Court hears arguments Tuesday, it is under no deadline to rule, but attorneys said it usually takes four to six months.

In 2003, a Montgomery jury agreed with the state’s arguments that Exxon Mobil intentionally underpaid the state in royalties from natural gas wells drilled in state-owned waters along the Alabama coast.•Mutual funds manager Janus Capital Group Inc. said Monday Dave Martin, president and chief financial officer, has resigned effective March 2.

In addition, General Counsel John Bluher will leave his position at the same time but will continue as a consultant for a few months. The company said the resignations are unrelated.

Greg Frost, controller and senior vice president, will replace Martin, who is leaving the Denver area for an unspecified career opportunity. Frost has been with Janus for 10 years. Kelley Howes, a senior vice president and general counsel for subsidiary Janus Capital Management, will succeed Bluher.

•The U.S. Navy on Monday said it awarded a $7.6 million contract to a subsidiary of Boeing Co.

The St. Louis, Mo.-based McDonnell Douglas Corp. will restart production lines for the T-45 Goshawk aircraft. The company will also perform a technical assessment to identify areas to reduce post-production costs of parts.

The company will perform the work in St. Louis, Mo., and Manchester, England, through December 2007.

Shares of Boeing dropped 5 cents to $90.67 in aftermarket trading on the New York Stock Exchange, after gaining 67 cents to finish at $90.72.