No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

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 Businesses Warn Strong Colón Is Threatening Jobs

Costa Rica’s unemployment rate remains low by recent standards, but a closer look at the labor market shows fewer people participating in the workforce...

More Than 50 Earthquakes Shake Area Around Costa Rica’s Irazú Volcano

More than 50 small earthquakes struck the area around Irazú Volcano this morning, but seismologists say the activity points to movement along a shallow...

Video of Orcas Spotted Near Costa Rica’s Cocos Island in Rare Encounter

A group of orcas has been spotted near Costa Rica’s Cocos Island, giving park rangers a rare look at one of the ocean’s most...

Costa Rica’s Rebeca Grynspan retakes lead in race to head the UN

Costa Rican economist Rebeca Grynspan moved back to the front of the race to become the next secretary-general of the United Nations on Friday....

Why Experts Say Costa Rica Is the Best Wellness Trip After 50

Costa Rica keeps turning up at the top of lists aimed at older travelers and retirees. The latest comes from Travel + Leisure, which...

Costa Rican Influencer Julián Valverde Released by ICE Without Bond

Costa Rican content creator Julián Valverde was released from U.S. Immigration and Customs Enforcement custody in Florida on Sunday, Sept. 20, after five days...

Dental tourism, because Medicare doesn’t cover for dental treatment

C. Everett Koop, known for his tenure as U.S. surgeon general during the Reagan administration, was renowned for his pediatric surgery and attention to...

Central America Drought Kills Cattle and Threatens Food Supply

Animals are dropping dead amid the worst drought in living memory for many Central Americans, who are dealing with the unforgiving effects of the...

Thousands rally across Costa Rica in defense of the courts as President Fernández pushes judicial overhaul

Thousands of Costa Ricans protested last night against what they see as a threat to the country's democracy from President Laura Fernández, driven by...
🌴 The Weekly Pura Vida

Costa Rica, Once a Week

The week's top stories, weather & insider tips — delivered every Sunday. One email, zero clutter.

🔒 Free. No spam. Unsubscribe anytime.

Loading…

Latest News from Costa Rica

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