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The following article was published in our article directory on February 16, 2011.
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Chevron Found Responsible For Oil Contamination

Article Category: Business

Author Name: xia zihui

Lawyers for Ecuadoreans who won a 9.5 (b) billion US dollar judgment against Chevron Corporation for decades-old damage to the country's rain forest said on Tuesday they won't try to collect the award until the oil giant completes the appeals process.

Monday's ruling by Ecuadorean Judge Nicolas Zambrano says the award can be doubled within two weeks if Chevron does not apologise.

Zambrano said the compensation had "the purpose of serving as an example, to avoid similar cases, to recognise the victims and to guarantee that similar actions do not occur in the future."

On Tuesday, Ecuador's President Rafael Correa denied any government involvement in the verdict.

"This is a private judicial dispute between the Amazonian community and a transnational corporation in which the government has nothing to do. The justice system is absolutely independent in the Chevron case," he said.

Morgan Crinklaw, Chevron spokesperson, said the company "anticipated" the verdict and added that they would appeal the Ecuadorean decision.

Oil analysts in the U.S. doubt Chevron will pay anywhere near the amount awarded.

The ruling against Chevron was expected.

The oil company was so worried that the plaintiffs would try to persuade multiple countries to seize its assets worldwide that a week ago it convinced a New York judge to ban any attempt to collect on an award for nearly a month.

But whether indigenous groups, who say their hunting and fishing grounds in Amazon River headwaters were decimated by toxic waste water that also raised the cancer rate, can collect the compensation remains to be seen.

Their lawyers say they won't try to collect the compensation until the oil giant completes appeals of the judge's ruling.

Meanwhile, Indigenous community leader Humberto Piaguaje said; "money is not significant to us".

However, he noted the judge had favoured his side after a 17 year battle.

The case has been moving its way through both U.S. and Ecuadorean courts for all of that time.

Chevron has said it has no intention of honouring the award outlined in a 187-page judgment that disappointed some plaintiffs, who brought the lawsuit 17 years ago in New York. It was moved to Ecuador in 2003.

Chevron, which has never operated in Ecuador, found itself immersed in the litigation after acquiring Texaco in 2001. It has maintained that a 1998 agreement Texaco signed with Ecuador after a 40 (m) million US dollar cleanup absolves it of liability.

The plaintiffs say the cleanup was a sham and didn't exempt third-party claims.

The decision Monday came less than a week after U.S. District Judge Lewis A. Kaplan in Manhattan ruled that no Ecuadorean award can be enforced for at least 28 days.

He is scheduled to hear arguments Friday on a request for a permanent order banning collection of the award.

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