Texaco/Chevron lawsuits (re Ecuador)
Para la versión en español de este perfil de las demandas judiciales contra Texaco/Chevron por actividades en Ecuador, haga clic acá.
- US lawsuits
- Proceedings in Ecuador
- International arbitration proceedings
- US legal proceedings following Ecuadorian judgment
- Proceedings in Canada
- Proceedings in other countries
- International Criminal Court proceedings
United States lawsuits
In 1993, a group of Ecuadorian citizens of the Oriente region filed a class action lawsuit in US federal court against Texaco (Aguinda v. Texaco), and in 1994 a group of Peruvian citizens living downstream from the Oriente region also filed a class action lawsuit against Texaco in US federal court (Jota v. Texaco). Both complaints alleged that between 1964 and 1992 Texaco’s oil operations polluted the rainforests and rivers in Ecuador and Peru, resulting in environmental damage and damage to the health of those who live in the region. Both lawsuits were dismissed by the US federal court in 2002 on forum non conveniens grounds (i.e., the court stated that Ecuador was a more appropriate venue for litigating these claims). In connection with the dismissal, Texaco agreed that courts in Ecuador and/or Peru would have jurisdiction over the plaintiffs' claims.
Proceedings in Ecuador
In 2003, a class action lawsuit was brought against Texaco (acquired by Chevron in 2001) in Ecuador alleging severe environmental contamination of the land where Texaco conducted its oil operation activities. The plaintiffs alleged that this contamination has led to increased rates of cancer as well as other serious health problems for the residents of the region. Judicial inspections of the allegedly contaminated sites commenced in August 2004. In early 2008, an independent expert recommended to the court that Chevron should pay $7-16 billion in compensation for the pollution. This expert increased his estimate of damages to $27 billion in November 2008. In 2008, Chevron reportedly lobbied the US Government to end trade preferences with Ecuador over this lawsuit. Following allegations of judicial misconduct, the original trial judge recused himself from the case and a new judge was appointed. Following a successful petition in US court to receive unused footage from the documentary "Crude", Chevron filed a petition with the court in August 2010 seeking to dismiss the lawsuit based on the company's assertion that certain parts of this footage show alleged fraud on the part of the plaintiffs. In September 2010, the plaintiffs submitted a new assessment of damages for the claims stating that the cost would be between $90 and $113 billion. In the same month, the judge concluded the evidentiary phase of the lawsuit. On 14 February 2011, the Ecuadorian judge issued a ruling against Chevron in the lawsuit. Chevron was ordered to pay $8.6 billion in damages and clean up costs, with the damages increasing to $18 billion if Chevron does not issue a public apology. Chevron indicated that it believes the ruling is "illegitimate" and "unenforceable", and it filed an appeal. On 3 January 2012 a panel of three judges from the Provincial Court of Justice of Sucumbios upheld the February 2011 ruling against Chevron. On 20 January 2012, Chevron appealed the decision with Ecuador's National Court of Justice. In March 2012, Chevron asked the Provincial Court of Justice for the fourth time to block the Ecuadorian Government from enforcing the $18 billion judgment against it. On 28 March 2012, the court ruled that Chevron was not entitled to use an order from the international arbitration tribunal, which asked Ecuador's Government to suspend the litigation, to block the plaintiffs from enforcing the judgment. In an effort to enforce the judgment, the Ecuadorian plaintiffs filed a lawsuit in Canada in May 2012 and one in Brazil in June 2012 targetting Chevron's assets in those countries. On 6 August 2012, the Ecuadorian court ruled that Chevron had until the end of the day to pay the $19 billion judgment. The award was increased in July 2012, after Judge Ortiz calculated various mandatory costs required by Ecuadorian law. In October 2012, the Ecuadorian court issued an order permitting the plaintiffs to seize about $200 million of Chevron's assets located in the country, in an effort to collect on the judgment against the company. On 12 November 2013, Ecuador Supreme Court upheld the August 2012 ruling against Texaco/Chevron for environmental damage but halved damages to $9.51 billion. On 27 June 2018, Chevron challenged the 2012 ruling of the Ecuador´s National Court of Justice in the Constitutional Court of Ecuador. On 10 July 2018, the Court upheld the $9.5 billion judgement against the company.
In September 2014, Chevron reportedly filed a claim against Woodsford Litigation Funding, which had financed lawyers working on enforcing the $9.5 billion Ecuadorian judgement against Chevron. Chevron claims the judgement was achieved by fraud and bribery.
International arbitration proceedings
In December 2006, and again in September 2009, Chevron filed an international arbitration claim before the Permanent Court of Arbitration at the Hague, alleging that the Government of Ecuador violated an US-Ecuador bilateral investment treaty. Chevron claimed that the Government of Ecuador violated international law by unduly influencing the judiciary and thereby compromising the judiciary's independence. In March 2010, the arbitration panel ruled that Ecuador's government had violated the bilateral investment treaty and international law by delaying rulings on the commercial dispute currently pending in Ecuador's courts. The Government of Ecuador and the plaintiffs in the Ecuadorian lawsuit filed a lawsuit in US federal court seeking an injunction barring Chevron from proceeding with arbitration under the bilateral investment treaty. The parties argued that due process rights in Ecuador would be denied should Chevron proceed with its arbitration.
In March 2010, the US court ruled that Chevron may pursue international arbitration in this case. The plaintiffs and Government of Ecuador have appealed this ruling. In an effort to prove its case, Chevron has sued in ten different US federal courts to try and obtain discovery documents from various consultants the plaintiffs engaged in the assessment of damages.
In February 2011, the international arbitration panel issued an Interim Measures Order in favour of Chevron ordering Ecuador to take all measures to suspend enforcement of the Ecuadorian judgment. In August 2011, the international arbitration tribunal awarded Chevron $96 million.
In February 2012, the arbitration panel met to review Ecuador's compliance with the Interim Measures Order. In February 2013, the arbitration tribunal ruled that Ecuador had not complied with the Interim Measures Order.
In March 2015, the arbitration tribunal held that the settlement between Chevron and Ecuador did not preclude residents from suing over the pollution in the future. The tribunal has yet to consider whether the issuing of the Ecuadorian judgment was in violation of the investment agreement with Texaco.
In January 2016, the international arbitration tribunal ruled in favour of Chevron over Ecuador being bound by the US-Ecuador investment agreement. Ecuador said it will appeal the decision.
In June 2016, The US Supreme Court declined to hear Ecuador's challenge to Chevron's arbitration award.
In July 2016, Ecuador indicated that it had executed the arbitrary decision and paid the $112 million ($96 million award plus interrests) compensation to Chevron.
On 30 August 2018, the Permanent Court of Arbitration in the Hague held Ecuador liable for "denying justice" to Chevron and violating the company's fundamental procedural rights, including the rights of defence, by allowing its courts to issue a $9.5 billion judgement against Chevron. The arbitration tribunal ruled that no part of the said judgement should be recognized or enforced by any State.
US legal proceedings following Ecuadorian judgment
Chevron filed a racketeering lawsuit against the plaintiffs' lawyers and representatives in US federal court on 1 February 2011. This lawsuit alleges that the plaintiffs' lawyers and representatives have conspired to extort up to $113 billion from Chevron through the Ecuadorian legal proceedings. In addition, Chevron obtained a temporary restraining order from a US federal judge, Lewis Kaplan, on 9 February 2011 enjoining the plaintiffs from attempting to enforce a judgment in the Ecuadorian legal proceedings in the United States. This temporary restraining order was extended in March 2011 and later appealed by the plaintiffs. Meanwhile, a US law firm has filed its own lawsuit against Chevron and Chevron's US legal counsel claiming that they have illegally interfered with its representation of the claimants in the legal proceedings.
On 19 September 2011, the US federal appeals court lifted the lower court’s order preventing enforcement of the Ecuadorian judgment. The court also ordered a stay of the racketeering case that Chevron filed against the plaintiffs. On 29 November 2011, Chevron filed a pre-trial motion to seize assets of the Ecuadorian plaintiffs in the racketeering lawsuit. In January 2012, US federal judge rejected Chevron’s request, stating it could be renewed at a later date.
On 5 January 2012, Chevron asked the US federal appeals court to restore the injunction enjoining the plaintiffs from enforcing the Ecuadorian judgment. On 19 January 2012, the court rejected Chevron’s request. On 26 January 2012, explaining its previous decision, the court of appeals ruled that Judge Kaplan lacked authority to block the enforcement of the $18 billion judgment. On 15 May 2012, the district judge overseeing the racketeering lawsuit allowed for the racketeering claims to continue, while dismissing claims of fraud. In October 2012 the US Supreme Court refused to hear Chevron's appeal of the lower court's decision ruling that Judge Kaplan lacked authority to issue the injunction blocking enforcement of the Ecuadorian judgment.
In July-August 2013, US federal courts upheld subpoenas served by Chevron on Microsoft, Google and Yahoo! demanding private user information about environmental advocates, journalists, lawyers and others. Chevron sought this as part of its fraud lawsuit against certain Ecuadorian oil pollution plaintiffs and their lawyers.
In March 2014, Judge Kaplan ruled in favour of Chevron, and found that the lawyers for the Ecuadorian community had used fabricated evidence, made bribes and ghost-wrote court documents. The plaintiffs were therefore barred from collecting the $9.51 billion judgment because the "decision was obtained by corrupt means.” The plaintiffs appealed arguing that the requirement that a US court recognizes a ruling of a foreign jurisdiction barred Chevron from challenging the judgement.
On 8 August 2016, a US court of appeals agreed with the lower court’s ruling that the Ecuadorian community cannot collect the $9.5 billion Ecuadorian judgement on the basis that judgment was obtained by corrupt means. In April 2017, the lawyers for the Ecuadorian asked the US Supreme Court to overturn a lower court decision allowing Chevron to use the US Racketeer Influenced and Corrupt Organizations Act to try to block a foreign court judgement. On 19 June 2017, the US Supreme Court declined to hear the petition. This means that the lower court decision blocking the enforcement of the Ecuadorian award stands.
In an effort to enforce the $9.51 billion Ecuadorian judgement, the Ecuadorian villagers filed a lawsuit in Canada in May 2012 targeting Chevron subsidiary's assets in this country. In September 2015, the Canadian Supreme Court confirmed jurisdiction of the Canadian courts to hear the case. In January 2017, the Ontario Superior Court decided that Chevron’s Canada assets and shares could not be used to satisfy the claim, as it is a separate legal entity. However, the judge agreed to toss out some of Chevron's defence arguments concerning the Ecuadorian judgement. The plaintiffs filed an appeal.
In September 2017, the Canadian Court satisfied Chevron's request to order the Ecuadorian plaintiffs to post almost $1 million as security for costs of further proceedings. The court of appeal reversed this order ruling the case a matter of public interest litigation. Chevron was obliged to cover the costs incurred by the Ecuadorians of challenging the security order.
On 17 and 18 April 2018, the Ontario Court of Appeal heard Ecuadorian villagers' appeal asking to enforce $9.5 billion judgement against Chevron using the assets of its subsidiary in Canada. On 23 May 2018, the court upheld the January 2017 decision of the Ontario Superior Court, ruling that Chevron Canada cannot be held liable instead of the parent company. The plaintiffs appealed the decision to the Supreme Court. On 4 April 2019, the Canadian Supreme Court rejected the request to review the lower court decision.
Proceedings in other countries
In October 2017, attempts to enforce the case in Argentina were rejected for a lack of jurisdiction and connection to Argentina. In November, Brazil's Superior Court of Justice refused to enforce the decision on the same grounds. On 5 July 2018, the Argentine Appeals Court Rejects Ecuadorian Judgment against Chevron.
International Criminal Court proceedings
In October 2014, Ecuadorian communities made a complaint to International Criminal Court against Chevron CEO John Watson. The complaint alleged that decisions by Chevron and its high ranking officers to pollute the rainforest, and subsequently to evade remediation, constituted a crime against humanity. According to the letter received by the Chevron's lawyer in March 2015 from the ICC Office of the Prosecutor, the allegations described in the communication to the ICC by the Lago Agrio plaintiffs were outside the Court's jurisdiction. The alleged crimes, according to the ICC Prosecutor, did not appear to amount to the international crimes under the Court's jurisdiction, based on the available information. In addition, although the ICC recently declared its intent to address environmental abuses, the Court may only hear cases occurred after 1 July 2002, whereas the alleged abuse happened in the 1990s.
- "The Permanent Court of Arbitration in The Hague Rules Against Ecuador, Favors Chevron", TeleSur, 7 Sep 2018
- "Top Ecuador court upholds $9 billion ruling against Chevron", ABC News USA, 11 Jul 2018
- "Chevron Ecuador Update: Argentine Court Rejects Fraudulent Ecuadorian Judgment Against Chevron", , Oakland News Now, 5 July 2018
- "Supreme Court May Weigh Big Weapon for U.S. Companies Sued Abroad", Paul Barrett, Bloomberg Business Week, 16 May 2017
- "ICC Won’t Prosecute Chevron", Lachlan Markay, Washington Free Beacon, 2 Apr 2015
- "Ecuador court deals Chevron fresh blow in pollution case", Reuters, 16 Oct 2012
- "Chevron fails to squelch $19 billion Ecuador verdict", Paul Barrett Bloomberg Businessweek, 9 Oct 2012
- "Chevron Faces Midnight Deadline in $19 Billion Ecuador Judgment", Environment News Service, 6 Aug 2012
- "Ecuador plaintiffs target Chevron's assets in Brazil", Eduardo Garcia, Reuters, 28 Jun 2012
- "Ecuador plainitffs file lawsuit in Canada against Chevron", Eduardo Garcia, Reuters, 30 May 2012
- "Chevron Gets Some Claims Dismissed From Ecuador Lawsuit (Update 2)", Patricia Hurtado, Bob Van Voris, Bloomberg 15 May 2012
- "Ecuadorian panel again squashes Chevron motion to block judgment", Jessica M. Karmasek, Legal Newsline, 2 Apr 2012
- "Ecuadoreans Blast 'Secret' Hague Tribunal Convened for Chevron", Adam Klasfeld, Courthouse News Service, 10 Feb 2012
- "Circuit Faults Use of State Law to Block Chevron Judgment", Mark Hamblett, New York Law Journal, 27 Jan 2012
- "Ecuador Update: One Door Shuts, Another Opens, and Chevron Lists Its Law Firms—All 39 of Them", Michael D. Goldhaber, Am Law Daily, 24 Jan 2012
- "Chevron Appeals Ruling In Ecuadorian Court", Dow Jones Newswires, 20 Jan 2012
- "So much for Plan B: Kaplan denies Chevron attachment motion", Alison Frankel, Reuters, 6 Jan 2012
- "Reversal of Fortune", Patrick Radden Keefe, New Yorker, 9 Jan 2012 [subscription only]
- "Chevron to fight Ecuador ruling", Naomi Mapstone, Financial Times, 6 Jan 2012
- "Chevron Bid to Dismiss $18 Billion Judgment Rejected in Ecuador Court", Karen Gullo & Mark Chediak, Bloomberg, 4 Jan 2012
- [Español] "Corte de Ecuador ratifica fallo contra petrolera Chevron", Reuters, 3 Jan 2012
- "U.S. court rules against Chevron in Ecuador case", David R. Baker, San Francisco Chronicle, 20 Sep 2011
- [Español] "Corte de EEUU apoya a Ecuador en cuantioso juicio contra Chevron", AP, 19 Sep 2011
- "Ecuador: finally, the polluter is commanded to pay", Independent, 16 Feb 2011
- "Chevron Fined $8.6 Billion in Epic Environmental Case", Frank Bajak & Gonzalo Solano, Associated Press, 15 Feb 2011
- "Federal Judge Blocks Enforcement of Likely Judgment Against Chevron", Mark Hamblett, New York Law Journal, 9 Feb 2011
- "Law firm fires back at Chevron in Ecuador case", Dan Levine, Reuters, 8 Feb 2011
- "Year 18 of Ecuador vs. Chevron Pollution Dispute", Michael D. Goldhaber, American Lawyer, 23 Sep 2010
- "Chevron keeps up pressure in Ecuador suit", David R. Baker, San Francisco Chronicle, 7 Sep 2010
- "Chevron wins an Ecuador claim, awaits major ruling", Braden Reddall, Reuters, 30 Mar 2010
-"Texaco Toxic Past Haunts Chevron as Judgment Looms", Michael Smith & Karen Gullo, Bloomberg, 30 Dec 2008
- "Chevron Estimate for Amazon Damages Rises by $11 Billion", Karen Gullo, Bloomberg, 27 Nov 2008
- "A $16 Billion Problem", Michael Isikoff, Newsweek, 26 Jul 2008
- [Español] "Nueve ecuatorianos demandan a Texaco", Olga Imbaquingo, Diario el Comercio [Ecuador], 26 abril 2006
- "Amazon Indians Say Texaco Left Damage", Gonzalo Solano, Associated Press, 20 Oct 2005
- “Chevron Trial Opens”, Alan Zibel, Oakland Tribune, 21 Oct 2003
- "Brazil's High Court Rejects Attempt to Enforce Fraudulent Ecuadorian Judgment Against Chevron", 30 Nov 2017
- "Argentine Court Rejects Attempt to Enforce Fraudulent Ecuadorian Judgment Against Chevron", 1 Nov 2017
- "Canadian Court Rejects Attempt to Enforce Fraudulent Ecuadorian Judgment Against Chevron Subsidiary", 20 Jan 2017
- "Chevron response to U.S. Court of Appeals decision", 22 Aug 2016
- "U.S. Appeals Court Affirms RICO Judgment Against Lawyer Behind Fraudulent Ecuador Lawsuit", 8 Aug 2016
- "Chevron Statement on United States Second Circuit Court of Appeals Order", 19 Sep 2011
- The Amazon Post
- "Ecuador Lawsuit - Facts about Chevron and Texaco in Ecuador"
- "Ecuador Lawsuit - Press Releases"
- "History of Texaco and Chevron in Ecuador" [includes links to US court decisions, certain filings by Texaco and status of Ecuadorian proceedings]
- [Español] "Texaco en Ecuador" [incluye enlaces a decisiones judiciales en los EEUU, varios documentos de Texaco y el estado actual de los procedimientos en Ecuador – material sólo en inglés]
Amazon Defense Coalition [NGO supporting plaintiffs]:
- "Step Towards Justice in Chevron Ecuador Contamination Case"
- "Chevron's $27 Billion Catastrophe"
- "Press Releases"
- "Key Documents & Court Filings from Aguinda Legal Team"
- "Communication to Office of the Prosecutor, ICC", Pablo Fajardo Mendoza & Eduardo Bernabé Toledo
- Earthrights International [filed brief in support of plaintiffs in the US proceedings]: "Amicus Brief in Jota v. Texaco and Aguida v. Texaco"
- Yaiguaje v. Chevron Corporation, Court of Appeal for Ontario, 23 May 2018
- Chevron Corporation and Texaco Petroleum Corporation v. The Republic of Ecuador, Second Partial Award on Track II, The Permanent Court of Arbitration, 30 Aug 2018
- Letter from the Office of the Prosecutor to R. Doak Bishop, Chevron's lawyer, International Criminal Court, 16 March 2015
- [Español] Fallo de la Corte Provincial de Justicia de Sucumbíos en el caso Maria Aguida y Otros, Corte Provincial de Justicia de Sucumbíos, 15 octubre 2012
- [Español] Fallo de la Corte Provincial de Justicia de Sucumbíos en el caso Maria Aguida y Otros contra Chevron Corporation, Corte Provincial de Justicia de Sucumbíos, 28 marzo 2012
- Chevron Corporation v Camacho Naranjo, et al- Order, US Court of Appeal for the Second Circuit, 19 Jan 2012
- [Español] Juez ponente: Dr. Milton Toral Zevallos - Corte provincial de justicia de Sucumbíos, Sala única de la corte provincial de justicia de Sucumbíos, 3 de enero 2012
- Provincial Court of Justice of Sucumbios, 3 Jan 2012 [English translation of appeals court decision]
- Chevron Corporation v Steven Donziger et al - Memorandum Opinion, US District Court Southern District of New York, 6 Jan 2012
- Chevron's appeal to Chief Judge of Sucumbios Provincial Court, 21 Mar 2011
- Chevron Corporation v. Camacho Naranjo, et al. - Summary Order, US Court of Appeals for the Second Circuit, 19 Sep 2011
- [Español] Juez ponente: AB. Nicolas Zambrano Lozada - Corte Provincial de Justicia Sucumbíos, Corte Provincial de Justicia Sucumbíos [Ecuador], 14 de febrero de 2011 [Fallo completo en el caso por daños ambientales contra Chevron]
- Provincial Court of Sucumbios - Judgment of Case No. 2003-0002, 14 Feb 2011 [English translation of decision issued by the Provincial Court of Sucumbios, Ecuador]
All components of this story
Author: Amazon Watch (USA)
Amazon Watch is extremely disappointed by the decision of the 2nd Circuit Appeals court to uphold Chevron's RICO SLAPP suit filed in retaliation for the unprecedented victory of contaminated Ecuadorian communities over Chevron in Ecuador. Since the $9.5 billion verdict...Chevron has reneged on its responsibility and sought every opportunity to escape justice...We are shocked that the Appeals Court is completely unconcerned that the factual findings of the lower court rely on the hearsay testimony of a corrupted witness who admits receiving payment in exchange for his testimony. It is a complete miscarriage of justice. By upholding Judge Kaplan's severely flawed and biased decision, the justices of the Second Circuit Court of Appeals impugnes the entire Ecuadorian judiciary based on the often contradictory testimony of a single compromised witness...It is well established that Chevron...deliberately dumped 18 billion gallons of toxic wastewater into the Amazon rainforest, resulting in an environmental disaster and a severe health crisis for tens of thousands of people...It is extremely disturbing that...the U.S. judicial system has...played a role in aiding a U.S. company found liable for one of the worst environmental disasters in history based on overwhelming evidence.
- Related stories: Texaco/Chevron lawsuits (re Ecuador) US court rules in favour of Chevron & denies $9.5 billion judgement to Amazonian residents for environmental damage
- Related in-depth areas: Latest Legal News
- Related companies: Chevron Texaco (part of Chevron)
Author: Daniel Fisher, Forbes (USA)
A federal appeals court in New York left intact crippling sanctions against attorney Steven Donziger ordering him to turn over to Chevron any proceeds from a $9.5 billion judgment he won in an Ecuadorean court in a process tainted by evidence of fraud and corruption. The Second Circuit Court of Appeals...found Donziger and his team had secretly written the judgment and offered an Ecuadorean judge $500,000 to sign it. As punishment, Kaplan issued an injunction against Donziger and two Ecuadorean co-defendants prohibiting them from attempting to enforce the judgment in any U.S. court and creating a constructive trust for Chevron’s benefit to hold any proceeds they obtain elsewhere in the world...Chevron sued Donziger under the Racketeering Influenced and Corrupt Organizations law, using a trove of evidence...to show how he’d orchestrated a scheme to construct evidence implicating Texaco/Chevron and hide the liability of Ecuador’s state-owned PetroEcuador...Evidence in the case revealed Donziger had a strong financial incentive to pin all the blame on Chevron: He had a secret agreement with the Ecuadorean oil company to repay any part of a judgment Chevron later recovered from PetroEcuador...
Chevron a gagné…une importante manche dans la saga judiciaire l'opposant aux autorités équatoriennes, qui l'accusent d'être responsable d'un des pires désastres environnementaux de la planète.
Une cour d'appel de New York a confirmé un jugement d'un tribunal américain datant de mars 2014 rejetant une amende de 9,5 milliards de dollars infligée à la major pétrolière par un tribunal équatorien en 2011…
C'est un gros soulagement pour le groupe américain poursuivi par 30.000 indigènes de la région amazonienne, qui voulaient faire saisir ses actifs aux Etats-Unis afin de récupérer les 9,5 milliards de dollars imposés par la justice équatorienne…
La cour équatorienne de la province de Sucumbios avait condamné Chevron à une lourde amende, contestée victorieusement par le groupe au motif que le juge chargé de l'affaire aurait été corrompu par les plaignants…
"Chevron se réjouit que la vérité ait prévalu sur la fraude et la corruption", a réagi lundi le groupe.
Se disant "choqués", les plaignants…ont dit être en train "d'examiner de près" la décision de la cour d'appel…
Ecuador pays Chevron arbitration court award of $112 million over dispute related to development of oil fields
"Ecuador pays $112 million award to Chevron - central bank", 23 Jul 2016
Ecuador has paid $112 million to energy company Chevron Corp over a four-decade-old contract dispute, even though it remains in disagreement, the head of the central bank has said. A Hague arbitration court awarded the U.S. company $96 million in 2011 in a dispute stemming from a 1973 deal that called for Texaco, later acquired by Chevron, to develop fields in exchange for selling oil to Ecuador at below-market rates. Various appeals by Ecuador against the ruling failed...[T]hat amount represented the award plus interest. "We don't agree with how these international mechanisms work ... however, we are respectful and we fulfill our international obligations," Martinez added. The payment comes as leftist President Rafael Correa's government faces a cash crunch due to tumbling crude revenues in the Andean oil producer that is OPEC's smallest member...
- Related stories: Hague tribunal rules for Ecuador in investment arbitration with Chevron; govt.’s settlement with firm did not preclude oil pollution case by Ecuadorian plaintiffs Texaco/Chevron lawsuits (re Ecuador)
- Related in-depth areas: Latest Legal News
- Related companies: Chevron Texaco (part of Chevron)
Author: Simon Billenness, CSR Strategy Group
Chevron shareholders remain wary of the risks from an $11 billion judgment against the company in Ecuador. They also continue to be critical of Chevron management’s mishandling of the case.
At Chevron’s annual shareholder meeting in May…[s]hareholders voted 378,540,311 shares in support of a resolution that cited management’s mishandling of the case in Ecuador and called for tighter shareholder oversight…
Proponents believe that Chevron’s management has materially mishandled legal matters brought against the company by communities in Ecuador – in ways that increased liabilities for the matter, currently amounting to $9.5 billion. Moreover, proponents are concerned about the adequacy of the company’s disclosure of those risks to shareholders. Finally, proponents are deeply troubled that the company has harassed longstanding shareholders who questioned the company’s approach to these issues….
…It is our belief that instead of negotiating an expedient, fair, and comprehensive settlement with the affected communities in Ecuador, Chevron management pursued a costly, risky, and ultimately unsuccessful legal strategy that involved material missteps…
Author: Theodore J. Boutrous, Jr., Gibson, Dunn & Crutcher LLP
…There is a growing trend of…cases being filed against corporations, claiming to be in defense of the environment or human rights, which are ultimately exposed as fraudulent and fabricated. Often, corporations settle these types of cases to avoid reputational damage or costly litigation…
Increasingly, however, corporations are challenging these baseless actions, and the organizations behind the frivolous lawsuits are not happy about it.
Last week, Katie Redford, the co-founder and director of EarthRights International, published a column to this site lamenting the fact that corporations are standing up for themselves. She even goes so far as to blame my law firm for leading this charge, citing cases we have handled for Dole and Chevron as examples of what she labels “retaliatory litigation” in an effort to silence environmentalists.
By highlighting these two cases, Ms. Redford demonstrates exactly why it is not only important, but vital, that American corporations fight fraudulent lawsuits if they have facts on their side…
- Related stories: "The New Corporate Playbook" for fighting environmentalists, by Katie Redford (EarthRights) - with corporate lawyer's response Chevron’s shareholders support resolution citing management’s mishandling of lawsuit over oil pollution in Ecuador Texaco/Chevron lawsuits (re Ecuador) Show moreShow less
- Related in-depth areas: Latest Legal News Latest news on human rights defenders
- Related companies: Chevron Dole Gibson, Dunn & Crutcher Texaco (part of Chevron)
"The New Corporate Playbook" for how business fights environmentalists - Katie Redford of EarthRights
Author: Katie Redford, EarthRights International (USA)
"The New Corporate Playbook, Or What To Do When Environmentalists Stand In Your Way", 29 June 2016
The list of those killed for protecting the earth and its people is far too long... When egregious murders like these occur,...we react with outrage and we demand accountability... But what happens when those very governments, courts, and legal systems that we turn to are turned against us by the very same powerful elites that we aim to hold accountable? In the U.S. ... [companies] are counter-attacking, mounting a sophisticated and well-funded campaign to target, sue, surveil, and harass the activists, lawyers, and NGOs that expose their harms... Here is what we see:
Attacks on funding sources, partners and clients...
Corporate espionage and surveillance...
Using Congress and the media to do their dirty work...
[refers to Chevron, ExxonMobil, Gibson Dunn & Crutcher, Dole, Patton Boggs, Resolute Forest Products]
- Related stories: "The New Corporate Playbook" for fighting environmentalists, by Katie Redford (EarthRights) - with corporate lawyer's response Texaco/Chevron lawsuits (re Ecuador)
- Related in-depth areas: Latest Legal News Latest news on human rights defenders
- Related companies: Chevron Dole ExxonMobil Gibson, Dunn & Crutcher
Author: Lawrence Hurley, Reuters
The U.S. Supreme Court on Monday let stand a $96 million international arbitration award issued in 2011 in favor of energy company Chevron Corp in a dispute over the development of oil fields in Ecuador.
The justices declined to hear the South American country's challenge to an August 2015 ruling by the U.S. Court of Appeals for the District of Columbia Circuit upholding the award in Chevron’s favor issued by The Hague's Permanent Court of Arbitration in the Netherlands.
With interest, the arbitration award stands at approximately $106 million, Chevron said. Chevron spokesman Morgan Crinklaw said in a statement the company was pleased that the Supreme Court rejected the appeal and that Ecuador "will be held accountable."…
Chevron initiated an arbitration proceeding at The Hague in 2006, claiming Ecuador's courts failed to resolve the lawsuits in a timely manner, violating a treaty between Ecuador and the United States. A panel awarded Chevron $96 million plus interest, which was subsequently upheld by the Dutch court system.
Chevron then filed a federal lawsuit in Washington, seeking a judgment confirming the panel's decision in order to collect the award…
Canadian courts review series of claims filed against Canadian mining companies for human rights abuses abroad
Author: Nelson Bennett, Business Vancouver (Canada)
"Wave of foreign lawsuits against local miners hits Canadian courts", 19 Apr 2016
In the coming months, the [British Columbia] BC Supreme Court is expected to decide whether a civil claim against a B.C. company with a mine in Eritrea can be heard in Canada. Three former Eritrean mine workers claim Nevsun Resources Ltd...was complicit in the Eritrean government’s use of conscripted labour and other human rights abuses at the company’s Bisha mine...The Nevsun claim is one of three that have been launched against Canadian mining companies since 2014...The...claims are part of a recent trend of Canadian mining companies operating abroad being taken to court in Canada by litigants who claim they cannot get justice in their own countries...According to...[Canadian Centre for International Justice] CCIJ, Canadian mining companies have operated for too many years with impunity in countries with lax environmental and human rights standards...The recent claims...have prompted renewed calls from Liberal MP John McKay for a Canadian ombudsperson that would investigate complaints about Canadian extraction companies operating abroad.....
- Related stories: Hudbay Minerals lawsuits (re Guatemala) Nevsun lawsuit (re Bisha mine, Eritrea) Tahoe Resources lawsuit (re Guatemala) Texaco/Chevron lawsuits (re Ecuador) Show moreShow less
- Related in-depth areas: Latest Legal News
- Related companies: Chevron Hudbay Minerals Nevsun Skye Resources (part of HudBay) Tahoe Resources (part of Pan American Silver)
Author: TeleSur (Venezuela)
The Ecuadorean government signaled Monday that will appeal a decision by the District Court of The Hague that ruled in favor of the Chevron oil company in a long-standing dispute over contamination in the Ecuadorean Amazon.
A panel from the District Court of the Hague in the Netherlands recently ruled that an arbitration tribunal, convened under the authority of the U.S.-Ecuador Bilateral Investment Treaty, did have jurisdiction in the case and affirmed the legitimacy several interim awards favoring the Chevron oil company.
Ecuadorean Attorney General Diego Garcia said the court erred in agreeing with Chevron that Ecuador was bound to the terms of the bilateral investment treaty and its arbitration mechanism.
The investment treaty between Ecuador and the United States came into effect in 1997, a full five years after Chevron ended its operations in the country. By ruling the arbitration tribunal had jurisdiction, the District Court of The Hague is attempting to apply the treaty retroactively...