In Re the Exxon Valdez, Sea Hawk Seafoods, Inc. v. Exxon Corporation and Exxon Shipping Company, and United States of America, Intervenor-Appellee

Plaintiff Sea Hawk Seafoods, Inc., operates a seafood processing business on Prince William Sound in Valdez, Alaska. Plaintiff sued Defendants, Exxon/Mobil Corp. and Exxon Shipping Co., under Alaska state law for business losses resulting from the Exxon Valdez oil spill. The district court dismissed Plaintiffs claims as preempted by federal admiralty law. We reversed the dismissal of Plaintiffs state law claims. Baker v. Hazelwood (In re Exxon Valdez), 270 F.3d 1215, 1253 (9th Cir.2001). On remand, the parties settled all remaining issues except for one: a prejudgment interest rate. The district court determined prejudgment interest rates under federal law. On de novo review, McCalla v. Royal MacCabees Life Ins. Co., 369 F.3d 1128, 1129 (9th Cir.2004), we reverse. As we explain below, state law supplies the rate of prejudgment interest.

This case arises out of the Exxon Valdez oil spill. On March 24, 1989, Defendants’ oil tanker ran into Bligh Reef off Valdez, Alaska, and discharged 11 million gallons of oil into Prince William Sound. In re Exxon Valdez, 270 F.3d at 1223 . On March 81, 1989, Plaintiff sued Defendants in Alaska state court for damages to its business from the oil…