Chevron Appeals Ruling In Ecuadorian Court
Chevron Corporation (CVX) has filed an appeal seeking the review
of a judgment issued against it early this month in an Ecuadorian
Chevron is accused of oil contamination in Ecuador's Amazon
region. The company denies the allegations.
In a statement, the company said Friday that the appeal, called
a petition for cassation, "details multiple legal grounds for
reversal of the January appellate court decision."
According to the company, the appeal seeks a review by the
Ecuador's National Court of Justice.
On Jan. 3, an Ecuadorian court ratified a multi-billion dollar
ruling issued last year against Chevron, holding the company
responsible for environmental and punitive damages stemming from
oil operations in Ecuador's Amazon region.
An appeals judge upheld the original ruling, issued in February
2011, "in all its aspects."
The original decision ordered Chevron to pay a $9.5 billion in
remediation costs and plaintiff damages, and an additional $8.6
billion if it refused to apologize for environmental damages, which
the company denies.
Ecuadorian plaintiffs have said that they will seek to collect
the money from the January ruling in foreign countries, and their
strategy to collect the money will include confiscating company
assets and freezing international accounts.
In addition to the appeal filed today, Chevron said that it
continues to seek recourse through legal proceedings outside of
Ecuadorean indigenous groups suing Chevron claim that the
company's Texaco unit polluted the rainforest and rivers, causing
environmental damage and personal injuries as a result of its
operations in Ecuador. Chevron denies the allegations.
Chevron inherited the lawsuit in 2001 when it acquired Texaco
Inc., which had operations in Ecuador from 1964 until 1992.
Chevron has never had exploration and production operations in
The company said Friday that it has asked that the Ecuadorian
appellate court take all steps to suspend enforcement of the
judgment until further order of a tribunal in The Hague, including
suspension of any requirement that Chevron post a bond to prevent
enforcement of the judgment during the cassation appeal.
Last February an arbitration panel in the Permanent Court for
Arbitration in The Hague ordered Ecuador "to take all measures at
its disposal to suspend or cause to be suspended the enforcement or
recognition within and without Ecuador of any judgment against"
Karen Hinton, a plaintiffs' spokeswoman said Friday that the
Chevron "seeks special treatment not afforded any other litigant
under Ecuadorian law. Chevron's request that a bond requirement be
waived would force the Ecuador appellate court to violate laws
protecting the winning side in any litigation from further attempts
by the loser to delay the proceedings and cause further harm."
-By Mercedes Alvaro, Dow Jones Newswires; 5939-9728-653;