Chevron Trying To Intimidate Ecuadorian Judge

Chevron CEO John Watson

Chevron has gone even further with its bullying practices in the environmental lawsuit over the contamination in Ecuador. Chevron lawyers threatened Nicolas Zambrano, the trail judge overseeing the case, with criminal sanctions and prison, if Chevron’s motion to nullify the trail is denied.Pablo Fajardo, the Ecuadorian lawyer representing the plaintiffs said:

"Chevron's threat to the judge is another example of its abuse of the rule of law and its desperation to avoid a judgment,"

"Threatening judges with criminal sanctions is typical of the Chevron way when it comes to litigating in Ecuador,"

Below is the press release by Amazon Defense Coalition with more details about Chevron’s threats toward the judge.

Chevron Threatened Ecuador Judge With Prison Time If He Failed to Grant Motions, Court Papers Say

On Eve of Judgment, Chevron Resorting to Intimidation Tactics

Amazon Defense Coalition
3 February 2011 – FOR IMMEDIATE RELEASE
Contact: Karen Hinton at 703-798-3109 or Karen@hintoncommunications.com

Lago Agrio, Ecuador (February 3, 2011) -- Chevron's lawyers in Ecuador have threatened the trial judge overseeing the historic environmental trial where the company faces a potential judgment in the billions of dollars, according to court papers made available by the plaintiffs.

In a series of recent legal papers, Chevron lawyers Enrique Carbajal and Alberto Racines threatened trial Judge Nicolas Zambrano with criminal sanctions and prison if he failed to grant their motions asking for a dismissal of the case, which has been on trial since 2003 in the Amazon town of Lago Agrio. The threats were clearly outlined in motions signed by the two lawyers and submitted to the court, said Pablo Fajardo, the Ecuadorian lawyer for the plaintiffs.

"Chevron's threat to the judge is another example of its abuse of the rule of law and its desperation to avoid a judgment," said Fajardo, who represents an estimated 30,000 Ecuadorians who brought the lawsuit.

Judge Zambrano recently sanctioned and fined Racines approximately $1,600 for repeatedly filing the same motions in an effort to delay the Ecuador trial. A third Chevron lawyer in Ecuador – Patricio Campuzano – was sanctioned for the same reason 2009. Also that year Racines exploded in anger at a trial testing site when oil was found at one of Chevron’s so-called “remediated” sites.

The first motion, filed by Carbajal on Chevron’s behalf, falsely claimed that the signatures of twenty of the 48 signatories to the lawsuit -- almost all indigenous persons and impoverished farmers -- were forged by attorneys for the plaintiffs. The plaintiffs rejected the claim and most of the 20 farmers appeared at a recent public event to verify that they actually signed the original lawsuit.

In the motion seeking the annulment of the trial based on the supposedly "forged" signatures, Carbajal wrote to the judge: "If you deny this motion, your conduct will fall within Article 292" of the criminal code of Ecuador, which requires a criminal sentence of up to six months for any public official who does not report a crime.

One day later, Racines filed a motion asking Judge Zambrano to nullify an expert report submitted by the plaintiffs by Dr. Lawrence Barnthouse, a renewed American natural resources ecologist. Racines, also citing Provision 292 of Ecuador's criminal code, said to the judge that "if you don't do it, you will have committed a criminal infraction punished by prison."

"Threatening judges with criminal sanctions is typical of the Chevron way when it comes to litigating in Ecuador," said Fajardo. "They would never attempt such intimidation tactics in U.S. courts."

In addition to the threats, Chevron has repeatedly been charged with trying to use intimidation tactics to dissuade law firms and financial partners from working with the plaintiffs, who live in dire conditions in approximately 80 different indigenous and farmer communities spread throughout the rainforest.

In recent days, Chevron has sued each of the 47 named plaintiffs in New York federal court; sought an unprecedented injunction from a U.S. federal judge to bar any American lawyer working on the case from enforcing a judgment from Ecuador's court anywhere in the world; and has actively tried to depose several of the plaintiff's lawyers. All told, the company has tried to depose 33 people in the U.S. who have worked with the plaintiffs.

Chevron also filed a civil RICO suit in New York, claiming the indigenous groups were trying to extort money from Chevron via the lawsuit.

"Chevron is acting out of pure desperation because we are nearing judgment," said Karen Hinton, the spokeswoman for the plaintiffs. "The company's new legal actions are designed to intimidate lawyers and funders and to provide a fake cover story for shareholders when the company is hit with an adverse judgment."

The environmental lawsuit charges Chevron with deliberately discharging more than 16 billion gallons of chemical-laced "formation water" into the streams and rivers of the Amazon over a 26-year period when it operated a large oil concession, decimating indigenous groups and poisoning an area the size of Rhode Island. The case was moved from U.S. federal court at Chevron's request after Chevron filed 14 sworn affidavits praising Ecuador's court system.

The top end of the damages claim recently submitted by the plaintiffs in their final argument is $113 billion. The plaintiffs have submitted tens of thousands of chemical sampling results that prove extensive soil contamination at 100% of Chevron's 378 former well and production sites in the Amazon.

"In the end, the voluminous scientific evidence will triumph over Chevron's intimidation tactics," said Fajardo.

Read More

Chevron General Counsel Hewitt Pate Stumbles as Ecuador Problem Balloons Out of Control

Hewitt Pate

As we blogged earlier, Chevron's continuing desperation to do anything it can to derail the potential $27.3 billion liability it faces for destroying part of Ecuador's rainforest has backfired yet again –this week the company again was caught misrepresenting key facts about the court-appointed expert who conducted a damages assessment not to the company's liking. On Tuesday, Chevron announced it had "newly discovered" evidence that the expert who conducted the damages assessment, Dr. Richard Cabrera, owns a remediation company in Ecuador that stands to benefit from a clean-up should the plaintiffs win the case.

Like so many other breathless announcements by Chevron, the company's newest "discovery" ("new" despite the fact that Chevron has filed 28 prior motions to attack Cabrera, none of which has been successful) has turned out to be worth less than the paper that its press releases were printed on.

It turns out that far from a conflict of interest, Dr. Cabrera explicitly disclosed to the court that he was involved in remediation in Ecuador – a qualification that was properly cited by the court as one of the reasons why he was accepted as the independent expert in the first place. Obviously, Dr. Cabrera would never be able to benefit from a clean-up related to a case he worked on given basic conflict of interest rules in Ecuador. But since Chevron cannot attack the technically sound evidence in the Cabrera report, which calls the company out for creating pollution that led to more than 1,400 excess cancer deaths, it tried to fabricate a distracting sideshow. For more details about Chevron's misrepresentations regarding Cabrera, see this response: http://chevrontoxico.com/assets/docs/2010-02-09-cabrera-response.pdf

The factual deficiencies of Chevron's allegations didn't stop the company from its ill-advised decision to "man up" and deploy Chevron Vice-President and General Counsel Hewitt Pate as its lead spokesman on the issue. Pate was featured prominently in Chevron's press materials and was put squarely in the middle of what should have been a low-level food fight between the long-warring parties. The fact that Pate, who is the general counsel of America's third largest company, is expending his political capital to bolster unsubstantiated allegations demonstrates how frantic the company has become about Ecuador. It also raises serious questions about the judgment of Chevron's legal department, where it seems to be a job requirement to prove your "machismo" through frontline interviews. Any other company would use a consultant or public relations firm to execute this type of messy media hit job.

So what's behind this? The answer is politics. Making up a press "event" out of facts that you misrepresent is a classic maneuver popularized by the Karl Rove School of politics. It turns out that Pate and his colleagues running the Chevron legal department all played central roles in the last Bush Administration. This is not a coincidence, as all of these individuals looked like they picked up a trick or two from Rove during their years of government service.

Chevron has a major distinction among the world's super-major oil companies: while most hire their general counsels from within their own legal department after years of service, or from prestigious outside law firms populated by lawyers experienced in the ways of the energy industry, Chevron stands alone in hiring political lawyers out of Republican Administrations. The last two general counsels for the company (Charles James and Pate) have been hand-plucked from the Bush administration's Justice Department, where they worked closely with former Attorney General John Ashcroft. James, who worked closely with Pate in Washington and hired him for Chevron, has a reputation from Washington to San Francisco as being a hard-right political ideologue.

James made the decision to hire as Chevron's deputy general counsel Jim Haynes, one of the Bush Administration "torture lawyers" under potential indictment in Spain and now unable to travel abroad for fear of arrest. While Chevron keeps Haynes swept under the rug for public image purposes, speculation on the street is that he is running the day to day in Chevron's in-house legal department. He clearly learned a lot about Chevron's conception of human rights by providing the legal justification for torture to a Rumsfeld-led Pentagon, where he served as General Counsel before being blocked by the Senate for a federal judgeship because of his infamous memo justifying waterboarding.

With these personnel moves, Chevron has elected to build a general counsel's office that is filled with right-wing lawyers who have relatively little experience in complex litigation matters. It turns out that since Chevron's legal team is led by political ideologues, the company is trying to find a political solution to a legal problem. It hires outside law firms who, to obtain Chevron's lucrative business, fall all over themselves to enable this distorted and ineffective conception of politics-as-litigation. That's why Chevron keeps stubbing its toes over Ecuador. That's why it has lost five straight times before U.S. federal courts, including before the U.S. Supreme Court, in its increasingly futile effort to get any judge anywhere to grant the company some sort of relief. That's also why Chevron's latest gambit to take the entire Ecuador matter to an international arbitration panel, without the presence of the Amazon communities, now risks getting torpedoed in U.S. federal court. The ham-fisted approach championed by James and now Pate is one reason why the Ecuador liability has ballooned out of control for Chevron and threatens about 20% of the company's market value.

Chevron must realize that the old days of using political influence to quash legal cases in far-flung countries is winding down. In Ecuador, those days are clearly over. In the United States, the method doesn't work. The fact Chevron uses its new general counsel's limited credibility to distort basic facts shows how "quaint" Chevron is compared to its industry peers, most of whom (perhaps not coincidentally) reported far better financial results last quarter. "Quaint" is how former Bush Administration lawyers such as Chevron's Haynes and Alberto Gonzales – folks who never served in the armed forces themselves -- used to describe the Geneva Conventions when justifying those "harsh interrogation tactics" that the world considered torture. Most Americans would consider such talk profoundly unpatriotic, but in Chevron's legal department that's probably what passes for typical chatter around the water cooler. That, and the excitement generated by the Sarah Palin sighting at the latest Tea Party convention.

Since lost lives don't seem to have much impact on the thinking at Chevron, how many billions of dollars will have to be garnished before Chevron's Board wakes up to this internal hazard?

Read More

Clean Up Ecuador: Letter to New Chevron CEO, John Watson

(Cross-posted from Amazon Watch's "Clean Up Ecuador" campaign website, www.chevrontoxico.com)

ChevronToxico | Letter from Atossa Soltani to New Chevron CEO, John Watson

On January 1st, John Watson will become the new Chairman and CEO of Chevron Corporation. Within the first few months of his tenure, a judgment is expected on a monumental environmental lawsuit for cleanup of oil contamination affecting tens of thousands of people living in an Amazon rainforest region of Ecuador called the Oriente.

Following is an open letter to Mr. Watson from Atossa Soltani, the founder and Executive Director of Amazon Watch, an organization that works to protect the rainforest and advance the rights of indigenous peoples in the Amazon Basin. The letter references a confidential corporate memo that provides shocking insight into the reckless practices employed by Texaco (now Chevron) in Ecuador.

Click here to add your name to a petition to Mr. Watson supporting clean-up in Ecuador.

December 17, 2009

Mr. John S. Watson
Incoming Chairman and Chief Executive Officer
Chevron Corporation

Dear Mr. Watson:

I write to you on behalf of Amazon Watch to express our hope that as Chief Executive of Chevron Corporation you will have the fortitude and vision to genuinely address the most painful and immediate challenge facing your company - the Ecuador disaster.

Our hope is that you will not miss this critical opportunity to resolve the human and environmental tragedy in Ecuador and transform Chevron into the responsible 21st century energy company professed in 'The Chevron Way' and in your 'Human Energy' advertising campaigns.

Your company is currently facing a $27.3 billion financial liability in Ecuador. We ask that you reflect on Chevron's handling of the Ecuador situation over the course of the last decade. You should remember Chevron's Annual General Shareholder Meeting in April 2001 - on the eve of the Texaco acquisition - when I delivered to your company a binder, titled "El Dorado," with more than 500 pages of comprehensive evidence documenting Texaco's massive environmental contamination in the Ecuadorian Amazon. At that meeting, I warned Chevron that by acquiring Texaco the company would not only take on the moral responsibility of rectifying the tragedy in the Amazon, but also assume a very costly financial liability.

Despite increasing shareholder and analyst concern, the growing public demand that Chevron take responsibility for its actions in Ecuador, and the resulting multi-billion liability they have spawned, Amazon Watch has witnessed your company pursue an expensive, ethically questionable, and counterproductive policy with regard to the Ecuador case.

Mr. Watson, as you surely know, the situation on the ground is dire. Thousands of acres of once pristine rainforest have been devastated by oil pollution. More than 30,000 indigenous peoples and campesinos have been left without clean water to drink. Children play beside toxic waste pits. Young women have been ravaged by stomach and uterine cancer due to poisoned water. As you are well aware, Texaco has admitted to having deliberately released 18 billion gallons of toxic wastewater into the waterways of the Ecuadorian Amazon, and to having left hundreds of abandoned unlined pits filled with crude oil and poison sludge over the course of more than two decades of oil operations. And now, as a direct result, a devastating public health crisis has consumed the region.

We are keenly attuned to Chevron's public relations strategy with respect to this matter. The basic approach is to consistently blame the contamination of the Amazon on Petroecuador, Ecuador's National Oil Company. Petroecuador's poor record of environmental stewardship - largely because it has used an oil production system built by Texaco and designed to pollute - does not diminish Texaco's responsibility for catastrophic contamination from 1964 to 1990. Texaco's deliberate dumping dwarfs any subsequent pollution. Rather than continuing to shift the blame to Petruecuador, it is time for Chevron to assume the responsibility for Texaco's legacy in Ecuador.

To remind you of Texaco's unethical practices in the 1970's, we have attached here a confidential memorandum from the Chairman of the Texaco Board of Directors to the Acting Manager of Texaco in Ecuador in 1972. The memo instructs the staff only to report "major events as per Oil Spill Response Plan" if they attract "the attention of press and/or regulatory authorities" and goes on to instruct: "no reports are to be kept on a routine basis and all previous reports to be removed...and destroyed." We trust that as the incoming CEO of Chevron, you do not condone this kind of denial, neglect and obfuscation made plain in the 1972 Texaco memo. We are interested in hearing your position on the matter.

Furthermore, and perhaps most importantly, it is our understanding that you have never been to Ecuador, Mr. Watson. It is of great concern to us, and should be to you, that the information and advice provided to Chevron senior management since the Texaco acquisition has lacked integrity and independence. We do not believe that a well-informed and responsible senior management team could reasonably pursue the current "blind fight" legal and public relations strategy if it indeed possessed accurate information. Consequently, and with the best intentions, we would like to invite you to visit the affected region of Ecuador in the sincere hope that seeing the abandoned toxic waste pits and poisoned waters and hearing the innumerable stories of human suffering will move you to do the right thing.

Until Chevron takes meaningful steps to resolve this case, it will continue to play out in the courts of Ecuador, as well as in the global court of public opinion. You have a choice between allowing the ongoing suffering and environmental devastation in Ecuador to tarnish your company's reputation, or providing a bold example of 'The Chevron Way,' which states "We respect the law, support universal human rights, protect the environment, and benefit the communities where we work."

Rather than continue to battle the communities that have already paid a heavy price to enrich Chevron, we believe you have an opportunity to help bring an end to their decades of needless suffering.

We don't make these suggestions lightly or symbolically; we appeal to you to resolve this human and environmental tragedy, and lead Chevron into a new era of meaningful corporate social responsibility.

We look forward to your response.

Sincerely,

Atossa Soltani

Executive Director
Amazon Watch

Read More