Politics, Business & Culture in the Americas

Ecuadorian Lawyers take Chevron to Canadian Courts

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A group of lawyers representing Ecuadorian villagers asked Canada’s Supreme Court on Thursday to try their decades-long case against Chevron in Canadian courts. The lawyers, led by primary attorney Steven Donzinger, are seeking compensation of about $9.5 billion dollars, granted by a judge in Ecuador for environmental damages in the Ecuadorian Amazon.

Whether or not Canadian courts will take on the case relies on a juridical technicality called “corporate veil.” Although Chevron has subsidiaries with billions of dollars in assets in Canada, the corporate veil principal distinguishes subsidiaries from their parent companies and establishes that they are not responsible for the actions of their parents, thus making it difficult for Canadian courts to have claims to the case.

The lawsuit was originally filed against Texaco in 1993 for environmental damages caused between 1964 and 1990 by the company’s disposal of billions of gallons of oil sludge into local tributaries, in what has been called the “worst oil-related pollution problem on the planet.” After a $40 million dollar cleanup, Ecuador and Texaco signed a contract releasing the company from further charges.  Chevron acquired Texaco in 2001, and in 2003, Donzinger filed a suit against Chevron that in 2011 resulted in $19 billion dollars awarded in favor of Ecuadorian villagers. That amount was later reduced to $9.5 billion, which the oil powerhouse has refused to pay.

A New York judge ruled against the Ecuadorians, claiming that the final verdict was attained through corrupt means. As a result, Dozinger has bypassed U.S. courts and appealed to Canada, where an Ontario lower court ruled that it could take the case, despite being overruled by the Ontario Court of Appeals last year.

“[This case] has implications for human rights victims all over Canada and around the world who might want to avail themselves of the Canadian courts over human rights issues,” said Dozinger. If Chevron’s appeal is upheld in Canadian court, Donzinger will seek to have the case tried in Argentina or Brazil.

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