Feb 28 An international tribunal has found
that it has jurisdiction to decide if Ecuador violated a treaty
with the United States requiring it to guarantee a fair trial to
Chevron Corp in an environmental lawsuit that ended in
an $18 billion judgment against the oil company.
A Tuesday posting on Chevron's website that was attributed
to the tribunal read: "The tribunal declares that it has
jurisdiction to proceed to the merits phase of these arbitration
The panel was set up through The Hague's Permanent Court of
Arbitration (PCA), and works under rules established by the
United Nations Commission on International Trade Law.
Ecuador's attorney general has argued that the tribunal has
no jurisdiction because the bilateral trade agreement between
the United States and the Andean country went into effect five
years after Texaco ended operations in Ecuador in 1992.
"We disagree ... but Ecuador will continue to present all
the claims, arguments and proofs, and will make use of all the
necessary resources to demonstrate that the complaints made by
Chevron-Texaco are baseless," Attorney General Diego Garcia said
in a statement.
On February 17, the three-person arbitration panel
reinforced its interim order from February 2011 that Ecuador
should suspend court awarded payments of claims against Texaco,
accused of polluting the rain forest and sickening people living
there. Texaco was taken over in 2001 by Chevron,
which has claimed the trial in Ecuador was unfair.
The plaintiffs awarded $18 billion a year ago have said they
will try to collect in countries where Chevron still has assets,
and the panel's ruling will not affect those plans.
The legal team for the Ecuadoreans, once led by New
York-based lawyer Steven Donziger, has argued that the panel's
interim ruling violates provisions of Ecuador's constitution
prohibiting interference in its courts.
But Chevron has said that it has uncovered in the U.S.
courts evidence of fraud by lawyers for the Ecuadorean
plaintiffs. The company is pursuing a separate racketeering
lawsuit against the Ecuadorean plaintiffs and their attorneys.
"Rather than allow ... plaintiffs' lawyers to cause even
more damage for which Ecuador may ultimately be held
responsible, the Republic should take this opportunity to pursue
a more constructive course," Chevron's general counsel Hewitt
Pate said in a statement.
Anticipating defeat in the marathon pollution trial, Chevron
filed for arbitration in September 2009, a few months after
hiring Pate, a former assistant attorney general at the U.S.
Department of Justice. The litigation has taken place over two
A ruling from the arbitrators could take a while. It took
four years for another tribunal working under the PCA to rule
last August that Ecuador had to pay Chevron $96 million in
connection with commercial claims made by Texaco in the 1990s.
The current panel includes one member named by Chevron,
Horacio Grigera Naon of the American University law college,
another named by Ecuador, Oxford Professor Vaughan Lowe, and
London-based lawyer V.V. Veeder, chosen by Naon and Lowe.