En Español

Very usefull links


News links




Dow Jones

Oil price



Views and News





Canadian Court rejects, blocked enforcement of Ecuador judgment on Chevron

The Ontario Superior Court of Justice ruled Chevron Canada Ltd is a separate entity from Chevron Corp, and is thus not a debtor to the Ecuadorian judgment.

Petroleumworld.com 01 23 2017

A Toronto court has rejected a bid by Ecuadorian villagers to enforce a judgment in their home country against Chevron Canada Ltd, ruling the subsidiary is not liable for parent Chevron Corp, the U.S. oil major said on Friday.

A Canadian lawyer for the villagers in the environment-damage lawsuit said the ruling is "not a modern-day view," and that an appeal will be filed.

Residents of Ecuador's Lago Agrio region have been trying to force Chevron to pay for water and soil contamination caused from 1964 to 1992 by Texaco, which Chevron acquired in 2001.

The villagers obtained a $9 billion judgment against Chevron in Ecuador in 2011. But the company has no assets in Ecuador, and the villagers have been suing it in the United States, Canada, Brazil and Argentina to enforce the decision.

While not disputing that pollution occurred, Chevron has alleged the villagers' lawyer, Steven Donziger, and his associates went too far, including arranging for the ghost-writing of a key environmental report and bribing the presiding judge in Ecuador.

A U.S. federal appeals court, which blocked enforcement of the judgment last year, agreed with the company.

On Friday, the Ontario Superior Court of Justice ruled Chevron Canada Ltd is a separate entity from Chevron Corp, and is thus not a debtor to the Ecuadorian judgment, according to a copy of the decision provided by the California-based Chevron.

But Justice Glenn Hainey also ruled partly in favor of the villagers.

Chevron had argued the Ecuadorian judgment is unenforceable in Canada because of what it says is the corrupt manner in which it was obtained. The villagers had asked for that argument to be struck out entirely.

Hainey ruled some parts of Chevron's argument should be struck, while some should be tested through trial.

Karen Hinton, U.S. spokeswoman for the Amazon Defense Coalition that represents the villagers, called the decision a "resounding victory," even if the Chevron Canada subsidiary, which is worth billions, is not up for grabs.

"The part of the decision that knocks out Chevron's subsidiary from the enforcement action still allows the villagers to proceed against Chevron itself," she said.

"The part of the decision to limit Chevron's liability is a temporary setback that will be corrected quickly on appeal."

Story by Ethan Lou; Editing by Alan Crosby and Lisa Shumaker from Reuters.

We invite all our readers to share with us
their views and comments about this article
Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels


Contact: editor@petroleumworld.com,

Editor & Publisher:P.Ohep F. /Producer - Publisher:P.Ohep F./
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2016, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2016, Petroleumworld   / Elio Ohep Fitzgerald- All rights reservedThis site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.