Canada rules for Ecuador villagers in Chevron case
The Supreme Court of Canada on Sept. 4 ruled in favor of Ecuadoran villagers seeking to enforce a multi-billion dollar judgment against the Chevron Corporation. In 2011, the 30,000 villagers secured the $17.2 billion judgment in an Ecuador court for environmental damage to rainforest in the Lago Agrio region. Damages were subsequently reduced by an appeals court to $9.5 billion. The new 7-0 ruling means that the Ecuadorans may pursue the judgment against Chevron in Canada through its subsidiary, Chevron Canada Ltd. Chevron has put up a vigorous legal battle to avoid the fine, arguing that, because the damage was perpetrated by Texaco between 1972 and 1990, before it was bought out by Chevron in 2001, and because Texaco signed an agreement with Ecuador to absolve it of responsibility after a $40 million cleanup effort, Chevron should not be required to pay out for its former competitor.
From Jurist, Sept. 5. Used with permission.