Chevron Lawyers Sanctioned Four Times in Eco-Disaster Case

For the fourth time, Chevron has been sanctioned for improper conduct in both U.S. and Ecuadorian courts. The sanctioned behavior ranges from attempting to overwhelm the Ecuadorian court by filing in a short time frame over a hundred motions -- some of which had been filed and ruled upon already -- to asking abusive questions of one of the plaintiffs' experts in an effort to intimidate him.

Andrea E. Neuman

Questioning by Gibson Dunn Attorney Andrea Neuman Found to Violate Colorado Bar Rule

Denver, Colorado (November 19, 2010) – A U.S. federal court has sanctioned Chevron and its lawyers at Gibson Dunn & Crutcher for abusive questioning during a deposition related to the oil giant’s multi-billion dollar liability in Ecuador for environmental contamination, according to court papers made available today.

The questioning that led to the sanctions was conducted by Andrea Neuman, one of Chevron’s lead lawyers on the Ecuador matter and a partner at Gibson Dunn’s office in Irvine, CA. Neuman is the fourth Chevron lawyer to be sanctioned recently in the Ecuador matter.

Separately, two Chevron employees are under criminal indictment in the South American nation for lying about the results of a purported environmental remediation that Chevron is using as a defense to the civil lawsuit over the contamination, which affects an area the size of Rhode Island.

Dozens of indigenous and farmer communities in Ecuador are suing the oil giant for deliberately dumping billions of gallons of toxic waste into Ecuador’s Amazon region when it operated a large oil concession from 1964 to 1990.

The contamination – which includes more than 900 abandoned toxic waste pits -- has plunged the region into a public health crisis that threatens thousands of people with cancer and other oil-related diseases, according to evidence before the court.

In the brief seeking the sanctions, the Amazon communities accused Neuman of using “blatant intimidation tactics” that “fall below the standards of professional conduct” required by Colorado and Federal rules in Colorado. The questioning occurred when Neuman deposed an American technical expert for the plaintiffs on Oct. 6 in Denver.

In a decision dated November 15, Magistrate Judge Michael E. Hegarty ordered Neuman and her colleagues at Gibson Dunn to refrain from asking questions in depositions involving the witnesses’ knowledge of criminal law statutes. Gibson Dunn is trying to characterize the expert work in Ecuador as fraudulent, a charge the Amazonian communities reject.

“This court in Colorado was willing to stand up to Gibson Dunn’s bullying and abusive tactics,” said Pablo Fajardo, the lead attorney for the plaintiffs in the Ecuador trial. “Chevron is using these tactics as part of its campaign to cover up its own fraud and wrongdoing in Ecuador.”

Just days ago a trial judge in Ecuador increased the fine for two Chevron lawyers found to be obstructing the trial. Alberto Racines and Diego Larrea, both of whom have worked on Chevron's legal team in Ecuador since the trial against Chevron began in 2003, were fined approximately $1,600 by Judge Nicolas Zambrano for repeatedly filing the same motions to delay the seven-year case.

In 2009, a third Chevron lawyer in Ecuador – Patricio Campuzano -- was sanctioned for the same reason. On August 5 – one day after the Ecuador court ordered both parties to submit their own damages assessments – Chevron filed 19 motions to nullify the order or the trial itself in a 30-minute period. Racines and Larrea then cited the failure of the trial judge to quickly rule on each of the motions as a basis to recuse him.

Just last week, Chevron’s Ecuador lawyers filed a long affidavit in court from a U.S. technical expert that was signed in 2004, one year after the trial began in Ecuador. Chevron then asked the judge to appoint a translator though Chevron generally provides its own translations of documents. Chevron, which operated several oil fields in Ecuador from 1964 to 1990, faces damages and clean-up costs of up to $113 billion.

The amount includes compensation for an estimated 10,000 potential deaths from cancer in the coming decades, according to reports submitted to the court by a team of prominent American technical experts. Chevron bought Texaco (which owned the Ecuador operation) in 2001 for $31 billion, apparently without adequately vetting the company for the Ecuador environmental liability, said Fajardo.

The lawsuit against Chevron, originally filed in U.S. federal court in 1993 but moved to Ecuador in 2002 at Chevron's request, accuses the oil giant of poisoning an area of rainforest that is home to five indigenous groups and thousands of farmers. The two Chevron employees under indictment in Ecuador, Rodrigo Perez Pallares and Ricardo Reis Veiga, have a preliminary hearing on their case scheduled for January 5, 2011 in Quito. Both are accused of defrauding Ecuador’s government by signing false documents certifying a sham cleanup in the mid-1990s.

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Chevron Lawyers Sanctioned and Fined for Obstructing Environmental Lawsuit in Ecuador

Last week Judge Nicolas Zambrano ruled that Chevron lawyers Alberto Racines and Diego Larrea tried to obstruct the multi-billion lawsuit the oil giant faces in Ecuador by repeatedly filling the same motions in an apparent effort to stall the case. Another Chevron lawyer Patricio Campuzano was sanctioned for the same reason in 2009. On August 5th, Chevron filled 19 motions to repeal the court’s order to submit new damages assessments and later argued the judge’s failure to rule quickly on those motions was a reason to recuse him. Given Chevron’s charges that previous damage assessments were fraudulent, one would think the company would welcome an opportunity to submit its own. Instead, facing a potential $113 billion liability, Chevron files a bunch of old motions already denied.

Three Chevron Lawyers Sanctioned For Obstructing Ecuador Environmental Trial

Facing $113 Billion in Potential Damages, Chevron Lawyers Seek Any Opportunity to Delay

Amazon Defense Coalition
29 October 2010 – FOR IMMEDIATE RELEASE
Contact: Karen Hinton at 703-798-3109 or Karen@hintoncommunications.com

Lago Agrio, Ecuador (October 29, 2010) -- A trial court has sanctioned and fined three Chevron lawyers for obstructing the trial where Chevron faces a multi-billion dollar judgment for the deliberate dumping of 18 billion gallons of toxic waste, according to court papers made available today.

Alberto Racines and Diego Larrea, both of whom have worked on Chevron’s legal team in Ecuador since the trial against Chevron began in 2003, were fined by Judge Nicolas Zambrano this week for repeatedly filing the same motions in an effort to delay the seven-year Ecuador trial.

The judge ruled that the lawyers had used Chevron’s motions “to obstruct the trial.” In 2009, a third Chevron lawyer – Patricio Campuzano – was sanctioned for the same reason.
On August 5 – one day after the court ordered both parties to submit their own damages assessments -- Chevron filed 19 motions to nullify the order or the trial itself in a 30-minute period. Racines and Larrea then cited the failure of the trial judge to quickly rule on each of the motions as a basis to recuse him.

“The evidence clearly shows Chevron used illegal practices that resulted in the massive destruction of the rainforest in Ecuador and the decimation of indigenous groups and other local residents,” said Pablo Fajardo, who represents dozens of indigenous and farmer communities suing the oil giant for dumping more than 18 billion gallons of toxic waste into the Amazon rainforest.

“To help Chevron evade its obligations, Chevron’s lawyers are trying to sabotage the Ecuadorian legal system in addition to violating their professional obligations,” he added.

Chevron, which operated several oil fields in Ecuador from 1964 to 1990, faces damages and clean-up costs estimated at up to $113 billion. The amount includes compensation for an estimated 10,000 potential deaths from cancer in the coming decades, according to reports submitted by a team of prominent American technical experts.
Chevron is also accused of deliberately discharged highly toxic “water of formation” into the waterways of the forest that thousands of local residents depended on for their drinking water. The “water of formation” has a salt content ten times greater than ocean water.

Chevron bought Texaco (which owned the Ecuador operation) in 2001 for $31 billion, apparently without adequately vetting the company for the Ecuador environmental liability, said Fajardo.

The lawsuit, filed in U.S. federal court in 1993 but moved to Ecuador in 2002 at Chevron’s request, accuses the oil giant of poisoning an area of rainforest the size of Rhode Island that is home to five indigenous groups. More than 900 unlined toxic waste pits built and abandoned by Chevron are spread out through the rainforest where they continue to contaminate groundwater and soils, according to evidence submitted to the court.
Chevron has repeatedly tried to delay the trial by bombarding the court in the Amazon town of Lago Agrio with hundreds of repetitive motions, a practice that has intensified in recent months.

Two Chevron employees currently living in the United States, Ricardo Reis Veiga and Rodrigo Perez Pallares, are under indictment in Ecuador for lying about the results of purported remediation in the mid-1990s. Evidence gathered during the trial shows that toxic waste pits the company claimed to have remediated are contaminated with cancer-causing toxins, sometimes hundreds of times higher than U.S. and Ecuadorian norms designed to protect public health.

Chevron’s misconduct in Ecuador and its abuse of the legal process has drawn increasing criticism.

A prominent Ecuador Bishop, Gonzalez Lopez Maranon, blasted the oil giant for failing to accept responsibility for the “pollution and death” Texaco caused in the country. The full text of his letter in English and Spanish, which was sent to the U.S. Conference of Catholic Bishops, can be found here.

Rep. James McGovern, the only member of Congress to have visited the disaster area in Ecuador, previously had written a letter to President Obama saying Chevron’s pollution had created “a terrible humanitarian and environmental crisis.” Dozens of members of Congress also have protested Chevron’s attempts to lobby the Obama Administration to cancel Ecuador’s trade preferences as retaliation for the lawsuit.

Just last week, Chevron’s new $100 million advertising campaign was widely mocked by environmental groups and the Yes Men, who created a website called www.chevronthinkswerestupid.com.

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