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7 Sep 2018

Sara Randazzo, Wall Street Journal

Tribunal Condemns Ecuador’s $9.5 Billion Ruling Against Chevron

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An international tribunal found the Republic of Ecuador violated a treaty with the U.S. by allowing its court system to issue a $9.5 billion judgment against Chevron Corp. in an environmental case.  The Friday ruling by the international arbitration court in The Hague further bolsters Chevron’s campaign to invalidate the massive 2011 Ecuadorean judgment, which sought to hold the energy giant responsible for environmental damage in an Amazonian village.  The tribunal...concluded...that the Ecuadorean case was tainted by fraud and corruption and that the $9.5 billion judgment can’t be enforced...Ecuador Attorney General Inigo Salvador Crespo said an international arbitration against the country should not have been used to interfere with the dispute between Chevron and the indigenous plaintiffs...The tribunal noted in its analysis that it couldn’t prevent individual plaintiffs from continuing to pursue their claims...[T]he tribunal found that by allowing the judgment to stand, Ecuador “wrongfully committed a denial of justice” under international law.  The panel said the ruling wasn’t an indictment on the entirety of the Ecuadorean legal system, but focused on the corruption of a single judge...