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 Cold Push of the Season Brings Stronger Winds and Rain

Costa Rica is beginning to feel the effects of the first cold push of the season, bringing stronger winds to Guanacaste and the Central...

Argentine Juan Martin del Potro Returns to Tennis Hall of Fame Ballot for 2027

Juan Martin del Potro has another chance to enter the International Tennis Hall of Fame, and fans have until Sunday, October 25, to help...

Costa Rica Gives SINPE Móvil Businesses 12 Months to Register Payment Numbers or Face Fines

If you get paid through SINPE Móvil for a business, a rental or freelance work in Costa Rica, you will soon have to tell...

Canadian Woman Dies at Costa Rica Cosmetic Surgery Clinic, OIJ Investigates

Costa Rican authorities are investigating the death of a 57-year-old Canadian woman at a cosmetic surgery clinic in San José. The woman had reportedly returned for a follow-up appointment after undergoing a procedure earlier in October.

Atenas launches Gallery Nights: a different artist every month, with the Central Valley as a backdrop

The series opens in November with Terry Eldridge, followed by John Taylor in December and Joanna Woskowicz in January Starting in November, Atenas will have...

Costa Rica’s President Says US Government Already Operates on Costa Rican Soil

President Laura Fernández said U.S. government agencies already carry out operations on Costa Rican territory, describing them as the continuation of existing security arrangements...

Costa Rica’s Rebeca Grynspan Leads UN Race but Faces Two Potential Vetoes

Costa Rican diplomat Rebeca Grynspan remains the leading candidate to become the next secretary-general of the United Nations, but a new round of voting...

Costa Rica’s Cahuita Tourism Businesses Struggle After Major Drug Raids

Tourism businesses in Cahuita, one of our best-known Caribbean destinations, are struggling with fewer visitors, declining sales and concerns about the town's reputation following...

Costa Rica Opens Bidding for $770 Million San José–San Ramón Highway Expansion

Costa Rica has opened international bidding for a $770 million expansion of the San José–San Ramón highway. The project includes additional lanes, new bridges, upgraded interchanges and proposed tolls, with construction expected to begin in 2027.
Loading…

Latest News from Costa Rica

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