HomeAmazoniaChevron wins US case against $9.5 billion Ecuador fine

Chevron wins US case against $9.5 billion Ecuador fine

NEW YORK – A U.S. judge Tuesday upheld Chevron’s allegations that an Ecuadoran court decision ordering it to pay $9.5 billion for oil pollution in the Amazon jungle was fraudulently obtained.

U.S. District Judge Lewis Kaplan concluded that plaintiffs in the 2011 case and their lawyers committed a host of corrupt actions, including ghostwriting the original judgment, submitting fraudulent evidence and bribery.

In barring enforcement of the original fine in U.S. courts, the decision handed Chevron a big win in its long fight with Ecuador.

But it was a setback to the indigenous people from Ecuador’s oil-rich Lago Agrio in the eastern Ecuador region of Oriente, who have long sought compensation for pollution by U.S. oil company Texaco between the 1970s and early 1990s.

Recommended: Unprecedented oil drilling by Ecuador brings new tensions to country’s Amazon lowlands

They allege that Texaco, which was bought by Chevron in 2001, dumped oilfield waste that polluted large swathes of the jungle region, causing widespread sickness and a surge in deaths from cancer.

Chevron has insisted it cannot be held responsible, and argued that corruption underpinned the massive fine ordered by the Ecuador court.

Kaplan said Steven Donziger, the New York lawyer who has represented the Ecuadoran plaintiffs since the 1990s, and his allies secretly paid off the authors of an ostensibly independent report on the pollution damages that was requested by the court.

In addition, he said, “Ultimately the [Donziger team] wrote the Lago Agrio court’s judgment themselves and promised $500,000 to the Ecuadoran judge to rule in their favor and sign their judgment,” Kaplan said.

“If ever there was a case warranting equitable relief with respect to a judgment procured by fraud, this is it,” Kaplan wrote.

Chevron called the ruling “a resounding victory for Chevron and our shareholders.”

“It confirms that the Ecuadoran judgment against Chevron is a fraud and the product of a criminal enterprise.”

Kaplan concluded that Chevron “might bear some responsibility” for pollution in Ecuador.

‘Bribery admission’

Witnesses in the case included a former Ecuadoran judge who admitted to accepting bribes.

Representatives of the plaintiffs and Donziger vowed to appeal.

“Today’s decision should be extremely troubling for anybody who cares about the rule of law,” said Deepak Gupta, who will represent Donziger in the appeal.

“This court has taken the extraordinary and unprecedented step of appointing itself a worldwide fact-finding commission.”

Han Shan, a spokesman for Ecuadoran villagers, said they would continue to press to enforce the Ecuadoran ruling in other countries where Chevron does business. Chevron has no significant assets in Ecuador.

“The affected communities long ago gave up hope that a U.S. court would provide them relief from Chevron’s contamination, which has taken their loved ones, poisoned their lands, and imperiled their cultures,” he said.

Kaplan’s ruling bars the Ecuadoran plaintiffs from enforcing Ecuador’s ruling in a U.S. court, and said his decision bars Donziger and some allies in the case “from profiting in any way from the egregious fraud that occurred here.”

But Kaplan said that his decision does not prevent enforcement of the Lago Agrio judgment in other countries.

Lago Agrio plaintiffs plan to press on with suits against Chevron in Argentina, Brazil, Canada and possibly other jurisdictions.

“Nothing in Judge Kaplan’s ruling will prevent my clients from pursuing the judgment’s enforcement in other countries. The villagers deserve justice, and I am confident they will get it despite Chevron’s efforts to undermine the rule of law,” Donziger said.

Chevron plans to have the 500-page ruling translated into languages used in other countries where the Ecuadorans can sue the company.

“Foreign courts will find those factual findings compelling,” said Randy Mastro, an attorney representing the company.

Dow component Chevron’s shares gained 0.4 percent at $115.32.

Trending Now

Costa Rica’s First Female Extradition Suspect Faces Legal Battle Over Transfer to United States

Appeal pauses extradition of La Güera, the first Costa Rican woman ordered sent to the US on cocaine charges.

A Proposed 15% Tax Would Reach Costa Rica Residents’ Foreign Dividends and Interest

Costa Rica residents who earn interest, dividends, rent or capital gains outside the country would pay a 15% tax on that income under a...

National Geographic Names Costa Rica Central America’s Ultimate Nature Escape

National Geographic's new guide calls Costa Rica Central America's ultimate nature escape and maps six regions for travelers, as US arrivals slip.

Pope Leo XIV Departs for First Latin America Journey to Uruguay Argentina and Peru

Pope Leo XIV leaves Rome on Friday, November 6, 2026, for a twelve-day apostolic journey to Uruguay, Argentina and Peru. The Holy See Press...

Costa Rica Researchers Study Pollution Exposure in Ostional Sea Turtles

Researchers are examining olive ridley sea turtles at Ostional for exposure to antibiotic-resistance genes as part of a broader investigation into marine pollution. Details...

Costa Rica Heads to Ecuador and Argentina Without Keylor Navas

Bryan Ruiz will take Costa Rica into its toughest test of the year without Keylor Navas. The veteran goalkeeper was left out of the...

5,000 Shareholders, No Dividends and a Court Order for Hospital CIMA’s Top Executive

A civil court in San José has ordered Clifton Neal Orme, the legal representative of Hospital CIMA, to appear in person and testify in...

Peru’s Ignacio Buse Stuns Medvedev in Landmark Paris Masters Victory

Peru’s Ignacio Buse delivered one of the biggest upsets of the Paris Masters on Wednesday, defeating world No. 5 Daniil Medvedev 6-4, 6-4 to...

Two Bull Sharks Found Dead in a Guanacaste Estuary They Had Never Been Known to Enter

Two bull sharks, rays and fish were found dead in a sand-blocked estuary at Playa Langosta near Tamarindo. Environmental authorities are investigating the cause.
Loading…

Latest News from Costa Rica

Costa Rica Coffee Maker Chorreador
Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel