Politics, Business & Culture in the Americas

U.S. Court Sides with Chevron in Ecuador Case

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A U.S. federal judge ruled in favor of Chevron Corp. yesterday, dealing a blow to the 30,000 Amazonian villagers who successfully sued the California-based oil company for $9.5 billion over environmental damage in 2011.

In his ruling, U.S. District Judge Lewis A. Kaplan wrote that U.S. courts could not be used to collect the $9.5 billion sum, citing wrongful conduct on the part of the prosecution. The court found that New York City lawyer Steven Donziger and Ecuadorian lawyers corrupted the case in Ecuador by submitting fraudulent evidence and bribing an Ecuadorian judge with $500,000 to rule in their favor.

Donziger responded that his team would quickly appeal the decision, while Chevron called the ruling a “resounding victory for Chevron and our stockholders.”

In 2011, a judge in Ecuador awarded $18 billion to five Amazonian tribes suing Chevron for environmental damage caused by Texaco—which was later bought by Chevron—between 1972 and 1990 in the Lago Agrio region. Ecuador’s highest court upheld the judgment, but reduced the amount to $9.5 billion.

Chevron claims that a 1998 agreement it signed with Texaco absolves it of liability for any the 18 billion gallons of toxic waste and 17 million gallons of crude oil spilled into the rainforest.

The Ecuadorian Embassy in Washington, which is not involved in the case, issued a statement saying that yesterday’s ruling “does not exonerate Chevron from its own legal and moral responsibilities resulting from its decades of contamination of the rainforest that has endangered the lives, culture, and environment of countless poor, indigenous people.”

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Tags: Chevron, Corporate social responsibility, Ecuador
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