Showing posts with label oil contamination. Show all posts
Showing posts with label oil contamination. Show all posts

Wednesday, October 30, 2013

Donziger & Ecuadorians File Motion to Strike Testimony of Chevron's Well-Paid Witness


Today, the legal team for Steven Donziger and the Ecuadorians targeted by Chevron's retaliatory RICO suit filed a motion—filled with devastating detail—to strike the testimony of the oil giant's star witness.

That star witness, disgraced former Ecuadorian Judge Alberto Guerra, testified during the RICO trial last week that representatives of the Lago Agrio Plaintiffs secured the opportunity to ghostwrite the 2011 judgment against Chevron issued by the Ecuadorian court by promising the presiding judge $500,000.

Well, I guess Chevron can rest its case. Silver bullet. Or, more like magic bullet.

One of the main problems with the story—besides the fact that it never happened—is that after weaving his tall tale, Guerra admitted that he had offered between ten and twenty bribes to judges during his career as a lawyer and after becoming a judge, accepted about the same number of bribes, sometimes for as small as $200, to "fix" cases.

But it gets worse, at least for the credibility of his fanciful testimony. From today's motion:

Guerra further understood from multiple conversations and lunch meetings with Chevron attorneys—where, as Guerra’s testimony revealed, they always fully heard out his offers and consulted with their principals before allegedly saying “no”—that as an out-of-work former judge with no role in the case, he simply didn’t have the “goods” Chevron wanted. Guerra had every incentive to manufacture those goods so that he could bargain hard with Chevron about the price of his testimony. And bargain he did, lying repeatedly to Chevron—i.e., that he was in possession of emails that would confirm Chevron’s ghostwriting allegations; that he possessed drafts of the Judgment; that the Lago Agrio Plaintiffs had recently offered him $300,000 to cooperate—in order to improve his bargaining position.

Okay, so the guy is an admitted liar and criminal but you know, maybe he's telling the truth now. What incentive could he possibly have to make up a new story now? Back to the motion:

When, after a long career of paying and accepting bribes, Guerra apparently decided that he would place himself in the service of Chevron, the former judge was earning $500 per month and had no savings. In contrast, Chevron has committed to paying Guerra, for a period of at least two years, a “salary” of $10,000 per month—20 times more than he was earning in Ecuador. It is unclear what need Guerra has for such a generous salary, in light of the fact that Chevron also: (i) provides Guerra with a monthly $2,000 “housing allowance”; (ii) bought Guerra a car and is paying for his auto insurance; (iii) is paying for health insurance to cover Guerra, his wife, his son, his son’s wife, and his grandchildren; (iv) paid Guerra roughly $12,000 to purchase household items upon his move to the U.S.; (v) paid Guerra’s moving expenses, including five airline tickets, transportation of personal items, and a temporary hotel stay upon arriving in the U.S.; (vi) paid Guerra roughly $50,000 in exchange for “evidence,” including $10,000 for belatedly finding a single document that supposedly eluded Guerra upon prior searches because it was “stuck” to something else; and (vii) pays the legal fees of Guerra’s various attorneys, including the fees of the lawyers handling immigration issues for his various family members. Guerra’s relocation on Chevron’s dime also reunited him with his daughter and a second son, who live in the U.S. and who Guerra had not seen in several years.

In other words, Chevron is bribing a judge to say that Donziger bribed a judge.

And the package Chevron has put together for this judge is outrageous, and egregiously runs afoul of federal law and ethical rules of conduct.

The motion outlines how the payments violate the federal Anti-Gratuity Statute as well as the Rules of Professional Conduct of New York, where the trial is taking place. By all means, read the motion for a detailed explanation of the rules but here is the view of prominent legal scholar and law professor Erwin Chemerinsky in a sworn declaration for the Defendants:

“if a party or its counsel were permitted to pay a testifying witness for physical evidence, beyond the reasonable value of that evidence, and to pay the witness a salary in exchange for an agreement to testify, there would be little left of the rule against compensating fact witnesses.” 

And the conclusion of the motion on the payments to Guerra?:

The bottom line is that Guerra is and apparently always has been desperate for money, and will stoop to extraordinary lows to get it—including fabricating a story for Chevron, weaving big lies with small truths in an effort to create the illusion of a verified account. Guerra’s recent testimony only serves to drive his unreliability home.

The motion is well worth reading in its entirety as it also highlights the admitted lies, the contradictions, and the suspect assertions in Guerra's testimony, as well as the total lack of anything approaching corroborating evidence for his explosive allegations.

During cross-examination, Guerra explained that he spent 3-4 days of every week for 3 full months in New York working with a team of Gibson Dunn lawyers led by Randy Mastro in preparation for his two days in court. That should be enough time for even a novice actor to learn his lines, no matter how fanciful a story he’s telling.

And hey, if it means reuniting with his beloved family in the United States, where he’ll enjoy a lifestyle he could only dream of before, it’s time well spent. And then some.

And for Chevron?

Simple. Guerra’s testimony is Chevron’s ‘magic bullet’ to save its RICO case and help the company avoid paying the $19 billion judgment for its devastation of the Ecuadorian Amazon.

If it worked, it would be money well spent.  And with a biased federal judge presiding, it probably will work – until a real court, the Second Circuit Court of Appeals, reviews the matter down the road. 

Never mind that the money spent on bribing Guerra to fabricate his story could be used to clean up the company’s contamination in Ecuador. But for Chevron, living up to its legal and moral responsibilities overseas would set a terrible precedent. 

In the end, Guerra’s preposterous testimony, bought and paid for by Chevron, his court performance the culmination of months of preparation by a team of highly-paid lawyer-thespians at Gibson Dunn, adds one more layer of absurdity to the farce that the current proceedings represent. A single federal judge in New York can no more act as an appellate court for the entire Ecuadorian Judiciary than Alberto Guerra’s words can be taken as the truth. And Chevron can no more hide from the truth than the company’s legal machinations can conceal its contamination, and its liabilities, in Ecuador.

Monday, August 5, 2013

Chevron Knows No Bounds In Ecuador Case, New York Times Article Shows

In a blog on The Huffington Post, the former U.S. spokesperson for the Ecuadorians who won a $19 billion judgment against Chevron for oil contamination argues a recent  New York Times article clearly shows that Chevron knows no bounds in its legal attacks to avoid being held accountable for the destruction it caused in the Ecuadorian rainforest.

Read the blog, written by Karen Hinton, here.

The New York Times article, written by energy reporter Cliff Krauss, is a balanced look at the 20-year-old lawsuit, but neglects to point out some key facts about the case:

1 -- Most importantly, it incorrectly states that the Ecuadorians filed their lawsuit against Texaco, now owned by Chevron, after Texaco entered into a remediation agreement with the Government of Ecuador. They filed their lawsuit in 1993 in a U.S. court. Not long after, Texaco appealed, lobbied, and probably bribed Ecuador's government to get the lawsuit dismissed. It would not and that led to the 1995 remediation agreement, which the U.S. court ignored. Equally important is the fact that the agreement carved out the Ecuadorians' lawsuit, stating that the third-party complaints were not covered by the agreement.

2 -- Chevron has never denied that it has spied and possibly continues to spy on one of the Ecuadorians' attorneys, Steven Donziger, a human rights lawyer whose reputation Chevron is clearly trying to destroy, if not his entire ability to make a living to support his family.

3 -- Chevron charges that the Ecuadorians' lawyers "ghostwrote" an Ecuador court report and two judgments, but have any reporters taken a close look at U.S. Judge Lewis Kaplan's recent rulings on Chevron's fraud countersuit? Kaplan's rulings are only slight re-writes of legal briefs filed by Chevron lawyers. U.S. judges often take arguments written in briefs, submitted by one side or the other, and use them in their briefs. In Ecuador, it's no different.

4 -- Krauss quotes Chevron saying that Donziger's "confidents" have turned against him, but everyone involved in the case knows that the individuals in question have been threatened and pressured by Chevron. For more than four years, Chevron pressured clients of Stratus Consulting, the environmental engineering firm for the Ecuadorians, to dump the firm. On the verge of bankruptcy resulting from the Chevron litigation against it, Stratus succumbed to the pressure with an affidavit disavowing the process for writing one of the court reports on contamination at the Chevron oil sites. Chevron dropped its lawsuit against Stratus; however, Stratus continues to stand by its findings of contamination. See here and here.

5 -- Another of Stratus' environmentalists is quoted from a video, saying that the contamination had not spread beyond the oil sites. Had Chevron allowed the reporter to see the entire video, he would have seen that she was concerned about the number of tests taken so far and was arguing for more testing to determine the impact of the contamination beyond the pits. Donziger was arguing that the Ecuadorians only had so much money to spend on tests; that contamination was evident at the oil sites, and that was enough to prove Chevron's guilt. Regardless, there is contamination at the well sites; people live near them; they should be cleaned.

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Tuesday, May 21, 2013

Ecuadorian Tells Chevron It's Time For Change In Leadership

Amazon Watch's latest official blog gives us a heads-up that one of the Ecuadorians suing Chevron will be at the oil giant's next shareholder meeting in San Ramon, California, Chevron's headquarters, on May 29th, urging CEO and Chairman of the Board John Watson to take a permanent hike.  The blog is below and here. Enjoy!


Servio Returns to Hand Watson a Pink Slip

Take Action!

Tell the Chevron board of directors
to fire CEO John Watson.
Two years ago Ecuadorian farmer Servio Curipoma left his rainforest home and traveled thousands of miles to bring his story to the United States. This month he returns to demand – on behalf of all the Amazonian communities that have been destroyed by Chevron – that John Watson pay a personal price for his region's suffering. Servio is calling on Watson to resign from his dirty post as CEO of Chevron.
You may remember how Servio had us all grasping our seats just two years ago with his deeply personal story of how Chevron devastated his lands and drinking water, causing a public health crisis that continues to this day. Servio lost both his parents (his mother's heartbreaking story is told here) and a sister to cancer, which doctors have attributed to drinking water contaminated by toxic crude waste. Since that time, Servio has become an active voice for his community over the past 16 years, demanding that Chevron take responsibility for the contamination that has so severely affected his family.
In 2011, we were honored to accompany Servio to the halls of power in Washington DC and New York to meet with decision makers in the government, media and environmental and human rights groups. He then took it right to Chevron's doorstep in San Ramon, California to confront John Watson and Chevron face to face. At that time Chevron had just lost the $19 billion legal battle for environmental and human rights crimes in Ecuador. Watson, who had been CEO for just over a year, was dismissive of Servio and his plea for help for the communities of Ecuador. Watson, an architect of the Texaco-Chevron merger, knew full well what had happened in the rainforest and did everything but take responsibility for the disaster, blaming Servio's suffering on Ecuadorian oil companies. Of course Watson knows that to be untrue since Texaco was the sole operator and has been found guilty of deliberately creating the environmental disaster.
Servio will return to Chevron headquarters for their Annual General Meeting on May 29th with a pink slip in hand for Watson and clear a demand of the Board of Directors. In the last two years, rather than face the reality and consequences of the judgment against them, John Watson has led Chevron on a "scorched earth" legal campaign against anyone and everyone who has ever spoken up about the company's atrocious crimes in Ecuador. He has labeled Servio and his community members as global conspirators and accused THEM of attempting to extort money from Chevron. Ludicrous and completely unacceptable! He has even attacked his own shareholders and tagged human rights and environmental organizations (including Amazon Watch) as co-conspirators. His company now faces a criminal investigation in California, billions of dollars in damages in Brazil, has its assets frozen in Argentina and Watson himself will be deposed in a matter of weeks related to the matter.
John Watson clearly represents the failed approach and reprehensible strategy of Chevron. Human rights and environmental organizations have now called for his resignation. Thousands of individuals citing these serious issues and others have added their voices to Servio's in a growing chorus that demands that John Watson must go! Please join them if you haven't already.
When will Chevron finally FESS UP and CLEAN UP its toxic mess in Ecuador and help the communities who still suffer to this very day?

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Wednesday, May 15, 2013

$19B Ecuador Liability Puts Chevron CEO Watson On Hot Seat Before Annual Meeting

Amazon Watch has issued this press release (see below) about Chevron's upcoming shareholder's meeting and the heat CEO and Chairman of the Board John Watson will take from activist shareholders about the Ecuador liability.

OAKLAND, Calif., May 14 /CSRwire/ - Facing growing shareholder unrest over asset seizure actions and forced to testify about his alleged misconduct in the $19 billon Ecuador case, Chevron CEO John Watson again will be on the hot seat at the company’s annual meeting in late May where rainforest indigenous villagers and investors plan to confront him over his company’s toxic dumping in the Amazon.
In a stunning rebuke to Watson, U.S. Magistrate Judge James C. Francis last week ordered that he and another top Chevron legal official sit for depositions to be taken by lawyers for the villagers and one of their representatives, New York-based attorney Steven Donziger. (See the judicial order hereand a Reuters article here.) Watson likely will have to answer questions about his own role in the case, including payments from Chevron officials for witness testimony, among other hot-button topics that the villagers say prove Chevron committed crimes in Ecuador.
The depositions had been furiously opposed by Chevron’s lawyers at Gibson Dunn & Crutcher, who are facing their own ethical challenges in defending the oil giant’s toxic dumping in Ecuador. (See this court ruling and this blog.)
At the Chevron annual meeting, scheduled for May 29 at company headquarters near San Francisco, Watson also will try to beat back two shareholder resolutions that directly challenge his mishandling of the Ecuador liability. Currently, Chevron faces enforcement actions targeting billions of company assets in Argentina, Canada and Brazil (see here for Canada, here for Brazil, and here for Argentina) and has suffered a series of devastating courtroom setbacks, including one in the U.S. Supreme Court, which prevented the oil giant from using U.S. courts to block international enforcement efforts.
The Financial Times reported just this week that Chevron was forced to “rethink” a planned $1.5 billion investment in a huge gas field in Argentina because of the enforcement action stemming from the Ecuador judgment. Earlier, a Chevron official has testified that the enforcement actions could cause “irreparable harm” to the company’s global operations.
The enforcement actions stem from an Ecuador court finding that Chevron dumped billions of gallons of toxic waste into the Amazon rainforest, decimating indigenous groups and causing an outbreak of cancer and other oil-related diseases. A summary of the judgment, based on a 220,000 page trial record and more than 64,000 chemical sampling results, can be found here.
A video about Chevron’s human rights abuses in Ecuador can be viewed here while a 60 Minutes report on the legal battle – which documents how Chevron installed pipes to deliberately run oil sludge into streams – can be viewed here.
Watson also is under fire for subpoenaing the files of several shareholder critics and alleging they are in a “conspiracy” with the Ecuadorian villagers who won the judgment against the company.New York Times columnist Gretchen Morgenson called the Chevron counterattack against its own investors “remarkable” in the annals of shareholder activism. (See Morgenson's article here.)
Last year, a resolution critical of Chevron management for the Ecuador liability received a whopping 38% of the vote from shareholders representing a combined $73 billion worth of Chevron stock. In addition, 40 institutional investors representing $580 billion in assets sent Watson a letter asking him to settle the case.
This year, the two shareholder resolutions that cite the Ecuador liability as a driving factor call for Chevron to appoint a director with environmental expertise and to lower the threshold needed to hold a special meeting.
Watson also faces these additional problems related to the Ecuador liability:
**Conflict of interest. Shareholders and activists say Watson should step down as Chevron CEO because of his failure to properly vet the Ecuador liability when the company purchased Texaco for $31 billion in 2001. Watson was a key driver behind the controversial transaction even though Amazon Watch specifically warned the company about the size of the liability.
**Deceit of shareholders. Watson also has been accused of lying to shareholders and the markets about key facts in the case, according to a recent report prepared by a Canadian securities lawyer. Several shareholders and a U.S. Congresswoman have asked the SEC to investigate Chevron for violating its disclosure obligations under U.S. law.
**Use of Kroll to spy on Chevron adversaries. The order from Judge Francis also requires that an official from the U.S. investigative services company Kroll, which essentially functions as a private surveillance agency for Chevron on the Ecuador case, sit for a deposition. Kroll operative San Anson was caught trying to bribe journalists to spy on the plaintiffs, while evidence surfaced the company has been involved in payments to judges in Ecuador and espionage against Donziger and his family, who live in Manhattan.
**Cash for witness testimony. Under Watson’s leadership, Chevron used Miami lawyer Andres Rivero to offer a suitcase full of cash to a former Ecuador judge in exchange for favorable testimony. Chevron later admitted it paid the judge more than ten times his annual salary and moved him to the U.S., where it is helping him obtain political asylum even though he is an admitted criminal.
**The Diego Borja bribery scandal. Under Watson’s tenure, Chevron admitted that it paid former employee Diego Borja more than $2 million to try to sabotage the Ecuador trial by entrapping a sitting judge in a fake bribery scandal. The move backfired, but the company still moved Borja to the U.S., where it pays him a substantial salary – the plaintiffs call it “hush money” – with no indication he is working.
As for enforcement actions, Watson faces a series of growing headaches.
In early November, a court in Argentina ordered that the company's assets be frozen while independent analysts are beginning to take notice that Chevron faces significant litigation problems around the world related to the Ecuador judgment. Chevron has $2 billion worth of assets in Argentina, and approximately $80 million of in cash is already in a court escrow account pending resolution of the enforcement action.
While Chevron recently won a temporary stay of the enforcement action in Canada on narrow technical grounds, the court found that the Ecuadorians established jurisdiction over Chevron subsidiaries that control roughly $15 billion worth of assets. The stay is now on appeal, with a decision expected in a few months.
In Brazil, where Chevron has an estimated $4 billion in assets, the Ecuador enforcement action is going through a streamlined process in the country’s highest court, with a ruling expected sometime in 2014. Chevron also faces a lawsuit from Brazilian authorities over its spill off the coast of Rio de Janeiro in 2011.
On a more personal level, the indigenous communities in Ecuador plan to confront Watson directly at the annual meeting. In past years, Watson has turned off the microphones of the Ecuadorians to silence them.
“Chevron needs to put its pants on, start acting like a grown up and accept responsibility for its mess in Ecuador,” Watson was told last year by Luz Trinidad Andrea Cusangua, an Ecuadorian who traveled from the rainforest to speak at the 2012 annual meeting.
Two years ago, Chevron’s annual meeting in Houston erupted in chaos when five shareholder critics were arrested as they confronted the company about its human rights abuses in Ecuador. At the time, Watson was accused of "losing his head" over the Ecuador case by Rainforest Action Network’s, Maria Ramos. Last year, he prevented two villagers from showing a video of the company’s damage to their ancestral lands. Chevron security officials also blocked them from passing out copies of the video to shareholders.
“Since becoming CEO Watson has led Chevron further down a dismal path – one where its international reputation is that of a corporate criminal on the run from justice,” said Paul Paz y Miño, a director at Amazon Watch, which has been monitoring the Ecuador liability for a decade.
“At any other company with an independent Board of Directors that adhered to proper ethical standards, Watson probably would have been fired by now,” added Paz y Miño.
For more background on the case, see this update prepared by Fenton Communications.
For more information, please contact:








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Tuesday, May 14, 2013

In Rare Occurrence, Chevron's CEO & Chair, John Watson, Will Be Deposed


Stop the presses! 

Even though he has characterized every aspect of Ecuador -- its people, culture, government and courts -- as corrupt, dysfunctional or a joke, U.S. Judge Lewis Kaplan finally ruled in favor of a motion filed by a group of Ecuadorians and their U.S. legal adviser.
The Ecuadorians may depose the oil giant's CEO and Chair, John Watson.  

It is rare that a CEO & Chairman of the Board is required to sit for a deposition, which will take place this month. Watson, though, has been intimately involved in the 20-year-old lawsuit, originally filed against Texaco in the U.S. but later re-filed in Ecuador against Chevron for massive oil contamination of the Amazon rainforest. Chevron purchased Texaco in 2001. In 2011, an Ecuador court delivered a $19 billion judgment against Chevron.

As the architect of the plan to purchase Texaco, Watson knew about Texaco's admission that it had dumped 16 billion gallons of toxic production water into the Ecuador rainforest's waterways. He knew about the 900 unlined pits that Texaco built to store pure crude. He knew about the internal audits Texaco conducted that showed massive contamination.  Yet, he pushed the merger and, as a result, inherited the largest environmental lawsuit in the world's history and urged a trial in Ecuador, only later to cry foul when he, his lawyers and his private investigative firm, Kroll, failed to undermine the Ecuadorian judicial system.  

Having lost in Ecuador, Watson and his 2,000 lawyers and legal assistants turned to the U.S. and found in Lewis Kaplan a federal judge only happy to take their spurious charges seriously. See this Chevron Pit for more background on Kaplan's bias against the Ecuadorians.

Meanwhile, the Ecuadorians are focusing their resources and energy where it matters:  in countries where Chevron has assets. They have filed lawsuits in Argentina, Canada, Brazil and Ecuador to seize assets as payment for the judgment Chevron refuses to acknowledge. Currently, $2 billion has been frozen in Argentina.



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Thursday, May 9, 2013

Chevron's Lies In Ecuador Case Evident in NBC News Report

NBC Nightly News Ann Curry recently returned from Ecuador with this account of how impoverished indigenous groups in the Amazon rainforest are preparing to fight -- literally and metaphorically -- their government's efforts to explore for oil on their native, pristine lands.

Meanwhile, some of these same groups are fighting in a U.S. courtroom 3,000 miles away 2,000 Chevron lawyers and a U.S. federal judge who believe a $19 billion judgment the Ecuadorians won in an Ecuador court is a fraud. Needless to say, The Chevron Pit strongly disagrees, while Chevron refuses to pay the judgment.

Curry's cameras document the beauty and the uniqueness of the Ecuadorian jungle in the Yasuni Park, reminding viewers that this was what another part of the rainforest once looked like before Texaco, now owned by Chevron, explored for oil five decades ago, using substandard drilling practices to maximize its profits. See this video to understand how Texaco, now Chevron, ruined the rainforest and destroyed a way of life for at least five indigenous groups.

Curry features an interesting proposal by Ecuador President Rafael Correa, who is asking developed countries driven by huge oil consumption to pay Ecuador NOT to explore for oil in the Yasuni Park, given that its thick and heavy vegetation helps keep the world's air supply cleaner by soaking up carbon dioxide.

By not developing the area, the rainforest is saved and the global environment improved but potential revenues from oil sales are not realized, depriving poor people of an education, safe housing and job opportunities. Correa believes Ecuador is, so to speak, scratching the developed world's back, but not getting any scratch in return.

On the other hand, Chevron would rather pay law firms like Gibson Dunn, Jones Day and King & Spalding hundreds of millions of dollars to fight the Ecuadorians in court, rather than spend even close to a similar amount on cleaning the soil and drinking water that Texaco contaminated. Chevron calculates that tactic is preferable than setting a precedent of actually helping people.

Though it's unlikely we've forgotten, the Nightly News segment reminds us that money -- the ability to make it and not lose it -- makes the world go around.  Watch the segment:





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