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Ecuador ruling in Chevron case could strain ties

By Erik Wasson - 01/04/12 12:21 PM ET

An Ecuadorian appeals court ruling against Chevron on Tuesday could strain ties with the United States and lead to renewed calls to have Congress revoke the country’s trade privileges.

The Provincial Court of Justice of Sucumbios upheld a February court ruling that Chevron owes local residents $18 billion over environmental damage caused by Texaco before Chevron acquired the company. Chevron can appeal the ruling to Ecuador’s supreme court.

The massive judgment would equal roughly half of Chevron’s yearly global profits. The plaintiffs say the ruling affirms that Chevron used junk science and intimidation in trying to avoid responsibility for environmental damage that caused cancer.

Chevron argues that it is not liable for damage in the Lago Agrio region due to pre-existing agreements between Ecuador's government and Texaco, but the plaintiffs and courts have found those agreements do not apply to lawsuits by Amazon residents. The oil company said in a statement that it continues “to seek recourse through legal proceedings outside of Ecuador,” including under the U.S.-Ecuador Bilateral Investment Treaty and in U.S. federal court.

The case was the subject of “Crude,” a feature film, and at one point involved video evidence recorded by a Chevron operative alleging that a lower court judge was biased from the start.

“The Lago Agrio judgment was procured through a corrupt and fraudulent scheme, much of which was captured on film and memorialized in the plaintiffs' representatives' own emails and correspondence. Their misconduct includes fabricating expert reports, manufacturing evidence, bribing and colluding with court officials, waging a campaign of intimidation against judges and even ghostwriting parts of the verdict itself,” Chevron said. "Chevron does not believe that the Ecuador ruling is enforceable in any court that observes the rule of law. The company will continue to seek to hold accountable the perpetrators of this fraud."

"The decision by an independent appellate court is yet further confirmation of Chevron's extraordinary greed and criminal misconduct in Ecuador. The decision is based on overwhelming scientific evidence presented at trial that proved Chevron deliberately dumped billions of gallons of toxic waste that poisoned the water supply of the Amazon rainforest, decimating indigenous groups and causing an outbreak of cancers and other diseases that continue to threaten thousands of innocent lives,” the plaintiffs said in a statement.

Over the years Chevron has pushed to have various administrations and Congress suspend Ecuador’s trade benefits under the Andean Trade Preference and Drug Eradication Act.


Source:
http://thehill.com/blogs/on-the-money/1005-trade/202315-ecuador-ruling-in-chevron-case-could-strain-ties

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