Showing posts with label wall street journal. Show all posts
Showing posts with label wall street journal. Show all posts

Wednesday, May 9, 2012

Wall Street Journal Editorial Page Preparing Fourth Hit Job On $18 Billion Ecuador Judgment

We are flattered to report that the Wall Street Journal editorial page is once again trying to carry water for Chevron's public relations flaks over the company's $18 billion judgment for creating the world's worst oil disaster in Ecuador.  Chevron has hired six public relations firms and almost 500 lawyers to undermine the communities that sued the company.

The irrepressible Mary Anastasia O'Grady – who purports to comment on events in Latin American as a columnist – called Karen Hinton, the spokesperson for the Ecuadorians, and, in a hurried interview yesterday, asked a series of questions reflecting Chevron's misleading talking points about the Ecuador trial.  O'Grady said she is preparing a column on Chevron's claim that an expert report submitted to the court was "secretly" authored by the plaintiffs.  This is one of Chevron's urban myths that has been fully debunked by the plaintiffs and rejected by Ecuador's appellate courts.

Let's test O'Grady's integrity.  Hinton sent her the following email responding to her questions in writing.  Read it and judge for yourself how much of these facts make it into O'Grady's upcoming column, should she indeed publish it:

Mary,

I want to reinforce and expand upon my answers to some of the questions you raised today in our phone call about the Chevron case in Ecuador. I am hoping you will strongly consider all of my comments as you write your column and not gloss over them. 

It is clear your questions are based on Chevron's misleading talking points. One of my colleagues informs me that you interviewed him by phone in 2007 and that you subsequently canceled a meeting where he was prepared to present information refuting Chevron's arguments as lies. Even though you did not write then on this issue, the editorial page of your newspaper has subsequently staged three separate attacks against the case based on Chevron's misinformation and extrajudicial strategy to undermine the proceedings to evade accountability for creating what is likely the world's worst oil-related disaster. We wrote letters to the editor in response to each of those articles correcting various inaccuracies. We hope that process does not repeat itself with your column.

We also have confirmed that the WSJ editorial page never disclosed that at least one of the two unsigned editorials attacking the Ecuador case was written by Bret Stephens, a columnist and now deputy editorial page editor who previously had written a signed column on the same issue with the same viewpoint.   

Here is some additional perspective on some of the issues you raised:

On whether Richard Cabrera met with the plaintiffs before he was appointed the global expert, and whether he and the plaintiffs planned what the global report would say:

Chevron has presented thousands of pages of papers and videos to the Ecuador court on this issue, and that court rejected the material as irrelevant and disregarded the results of the Cabrera report in making its decision finding Chevron liable.  Instead, it based its decision on 104 other technical reports -- the majority submitted by court experts named by Chevron, paid by Chevron, and whose reports were written by Chevron lawyers -- in deciding that Chevron dumped billions of gallons of toxic waste into the Amazon, abandoned hundreds of toxic waste pits, flared poisonous gas into the air, and therefore should pay for a clean-up of what experts consider to be the world's worst oil-related disaster.

That said, there is nothing wrong with the Cabrera report. The contents of that report -- which relied heavily on Chevron's own technical reports submitted as evidence that proved contamination -- is valid from a technical and empirical standpoint.  Some of the information and conclusions were presented to Cabrera by top-level technical experts, consistent with court rules. The fact Cabrera adopted these findings and relied on his own independent soil and water sampling reflected his judgment that they were valid and reflected the evidence.  This is no different than what judges do all the time in the U.S. when presented with findings of fact and conclusions of law by the parties in a disputed litigation. The fact Cabrera was paid exclusively by the plaintiffs was required by the Ecuador court; other court-named experts were paid exclusively by Chevron, also consistent with court rules that require the party asking for a report to pay for it.  Again, this is no different than a party in the U.S. paying for the costs of an expert witness.

Chevron boycotted the Cabrera report process because it did not want to legitimate any aspect of the proceeding that it knew it would lose based on the scientific evidence. Thousands of soil and water samples had already been taken by both parties that showed extensive contamination at 100% of Chevron's former well sites.  Chevron knew Cabrera had access to this data, and this fact terrified the company's lawyers. So Chevron now reaps what it sowed with its unilateral boycott: a report that does not reflect its point of view in any way, shape, or form.  But it did succeed in getting the report knocked out of evidence by waging an unrelenting, entirely improper pressure campaign against the judges presiding over the trial.

When Chevron says the plaintiffs met secretly with Cabrera, that is a complete misrepresentation of the process.  The plaintiffs met with Cabrera (and with other experts appointed by the court) consistent with court rules, as did Chevron's lawyers.  We remind you that to the extent these rules seem different than those in the U.S., it does not mean they reflect an inferior system.  In fact, these procedures are consistent with the rules in most civil law countries and have been confirmed as valid by multiple legal experts in Ecuador and elsewhere.  Chevron has been unable to cite one statute or court rule justifying its position on the Cabrera report.  

Chevron also has tried to market two additional lies about Cabrera -- that he was paid with a "secret" bank account, and that he was "bribed".  Both of these accusations collapse when viewed in light of the evidence. There was no secret bank account. Cabrera was always paid for work performed consistent with court rules and the contractual obligation of the parties to pay for experts who produced reports they requested.

On whether attorneys for the plaintiffs will be paid $5.7 billion in fees. The judgment categorizes how $9 billion will be spent on cleanup, water and health. Where does the rest of the money go?

If you are relying on documents Chevron obtained through discovery from U.S. counsel to opine on this issue, we are putting you on notice that those documents have been interpreted inaccurately by Chevron lawyers and in any event have been superseded by other documents.

The vast majority of the judgment will be used to remediate Chevron's horrific and deliberate contamination of the rainforest -- a contamination so great in magnitude that it dwarfs the size of the BP disaster in the Gulf of Mexico where liability has been estimated to be a minimum of $40 billion.  By comparison, Chevron is getting off easy in Ecuador because the court rejected several claims for damages made by the rainforest communities.  The money will be used to remediate contaminated soils and groundwater, provide clean drinking water to dozens of communities, create a health care infrastructure to deal with high cancer rates in the region, and to restore indigenous lands.  The attorneys will be paid a modest contingency fee per private contract with the affected communities -- a fee that is low compared the two decades of work spent preparing and litigating the lawsuit, and the risk undertaken by lawyers in advancing their own funds and time in the pursuit of a fair result for their clients.

On Chevron's contention that the Cabrera report and the court judgment contain identical language from documents written by the plaintiffs.

As in the U.S. court system, a court expert or judge often adopts language offered to the court by one of the parties. What happened in Ecuador was no different. Cabrera accepted some of the documents we submitted because his own testing proved their accuracy.

Chevron's assertions about the "ghostwriting" of the judgment is a complete lie and reflects the company's desperation. The documents in question have been submitted to the court in various forms, either as direct submissions from the plaintiffs or Chevron, or via expert reports.  In fact, none of Chevron's so-called "experts" on this issue has even reviewed the entire trial record.  And some of their conclusions simply do not withstand serious inquiry.

This is nothing more than last-minute hysteria by a desperate litigant.  Chevron stalled the case for ten years in U.S. courts, thinking it would disappear once a U.S. federal judge moved it to Ecuador.  When the evidence of contamination began to pour in, Chevron began to cry foul as part of a concerted strategy to undermine the very court system it repeatedly had praised. The only way out was to either be held accountable or concoct accusations of fraud. Now that the communities have won a landmark victory and are preparing to enforce their judgment, Chevron is appealing once more to journalists with one-sided presentations of facts that have no relationship to the body of evidence that overwhelmingly proved Chevron's guilt.

Finally, we have extensively documented Chevron's violations of anti-bribery statutes in the U.S. and Ecuador in various sworn affidavits.  Most recently, Chevron offered a $1 billion bribe to Ecuador's government to extricate itself illegally from the lawsuit.  More information on this and other examples of Chevron's malfeasance and criminality can be found on the website www.chevrontoxico.com.

Conclusion

We hope and indeed expect our version of the facts will be reflected in your analysis and that you will not allow your column to become a de facto public relations tool for Chevron's unethical attempt to evade justice.

Best, 

Karen Hinton


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Tuesday, October 5, 2010

Chevron Should Pay for Its Pollution in Ecuador

The arch-conservative Wall Street Journal editorial page blasted the Ecuadorians’ lawsuit for the third time recently. Some things in life are so predictable. Below is the letter to the editor in response.

Chevron Should Pay for Its Pollution in Ecuador

Your editorial "Shakedown in the Rain Forest" (Sept. 23) on Chevron's multibillion-dollar liability in Ecuador is the third time in recent years that you have attacked this important litigation. Contrary to what you claim, scientific evidence from experts demonstrates that Chevron has been contaminating an area in Ecuador the size of Rhode Island and taking advantage of indigenous groups for decades. Now Chevron is trying to sabotage a seven-year trial to evade accountability.

Rather than deal with the overwhelming evidence of its contamination, Chevron has launched a strategy of intimidation, distraction and delay. It has filed legal actions in 10 different U.S. federal courts against 23 people (including two lawyers) involved in the case, claiming ex parte contacts with a court expert constitute "fraud." Chevron knows that such contacts were allowed by the court and were common practice by both parties. Chevron devised this narrative as part of a strategy to defeat enforcement of a potentially adverse judgment.

From 1964 to 1990, Chevron deliberately dumped billions of gallons of toxic "formation water" into streams and rivers which thousands of people in the rain forest relied on for their drinking water. This hot liquid had a saline content 10 times higher than ocean water and contained heavy metals and carcinogens. Laboratory samples submitted during the trial found that all of the company's former well sites are extensively contaminated— often at levels hundreds of times higher than Ecuadorian and U.S. norms. The disaster is larger than the BP Gulf spill and will cause harm for decades if not cleaned up.

Several peer-reviewed health evaluations have found significantly elevated rates of cancer where Chevron operated. Daniel Rourke, formerly associated with the Rand Corp., has found that up to 10,000 Ecuadorians are at significant risk of contracting cancer in the coming decades. Ann Maest, a leading geochemist, found that many Chevron pit sites "still contain high levels of . . . petroleum hydrocarbon contaminants" and are in close proximity to wells used for drinking water.

The editorial also mischaracterizes Chevron's so-called "remediation" in the mid-1990s. Chevron employed a laboratory method that produced artificially low measurements of toxins that were used to induce the government to grant a release. As a result, two Chevron employees and several former Ecuadorian officials face fraud charges in Ecuador. Chevron's internal audits conducted in the early 1990s found that remediation was necessary "at all production facilities," that toxic wastes were not treated and that oil spills "were not cleaned up." Yet Chevron never conducted a single environmental or health-impact study during the 26 years it operated in Ecuador.

Chevron for years insisted on moving the litigation to Ecuador after it was filed in U.S. federal court in 1993. With the evidence against it mounting, Chevron needs to stop forum shopping and allow Ecuador's courts to determine the extent of its responsibility for this disaster.

Jonathan S. Abady

Attorney for Ecuadorian plaintiffs

New York

Thursday, September 24, 2009

Chevron attempting to pass the buck to Ecuador?

The Wall Street Journal published an article today (both in their print edition and online) looking at Chevron's latest maneuver to try to pass any liability stemming from the landmark environmental lawsuit against the company over to the government of Ecuador. This article appeared in print (below) but oddly, appeared originally as a different, longer version on its webpage. It turns out that somewhere in the editing process the Journal edited out quotes from a UC David Law Professor, Andrea Bjorklund, and a complete quote from Steven Donziger, attorney for the plaintiffs. Read below the print version of the story for the complete, original online version of the article:

The print version of the article:


SEPTEMBER 24, 2009

Chevron Files Suit Against Ecuador

Looking to Protect Itself in Longtime Battle, Oil Giant Seeks Aid Through Trade Pact

By BEN CASSELMAN and ANGEL GONZALEZ

Chevron Corp. is stepping up its offensive in its long-running legal battle in Ecuador, suing Ecuador's government under international trade law.

Chevron is the defendant in a multibillion-dollar lawsuit that seeks to hold the company responsible for environmental damage allegedly caused by Texaco Inc., which Chevron bought in 2001. Chevron has denied the allegations.


Associated Press

Ecuadorean community leader Luis Yanza protests following a Chevron shareholders' meeting at the company's headquarters in San Ramon, Calif., last year. A lawsuit accuses Chevron of environmental damage in Ecuador.

Seeking to protect itself from what it says is likely to be an adverse ruling in Ecuador, the California-based oil giant said Wednesday it had filed suit under the terms of a 1997 trade pact between the U.S. and Ecuador. The suit amounts to a request for arbitration through a process set up by the United Nations Commission on International Trade Law to adjudicate disagreements.

The arbitration process is separate from the original lawsuit, which will continue. But under its pact with the U.S., Ecuador must accept the arbitrators' rulings as binding under international law.

In its filing, Chevron argues Ecuador's government is responsible for any environmental damage and should pay any penalties assessed in the lawsuit, which could total $27 billion, according to a court-appointed expert. Chevron also asks that arbitrators force Ecuador's government to pay the company's legal fees and to award "moral damages" due to the government's alleged interference in the case, intimidation of Chevron representatives and other "outrageous and illegal conduct."

The move seeks to capitalize on the release last month of videos that Chevron says reveal a bribery scheme possibly involving the Ecuadorean judge who has been overseeing the lawsuit. Ecuador says it is investigating Chevron's allegations, as well as any potential involvement by Chevron in the scheme. The judge, who has sought to recuse himself from the case, has denied any wrongdoing, and the videos don't show him accepting or soliciting a bribe. On Tuesday, a local court ruled that the judge's withdrawal petition was "unfounded" and ordered him to stay in the case.

Chevron believes the controversy has given new weight to its claim that it cannot get a fair trial in Ecuador.

"We have believed for some time that it would be impossible for Chevron to get a fair hearing in Ecuador," Chevron General Counsel R. Hewitt Pate said.

Eric Bloom, a U.S. attorney representing Ecuador in the dispute, said Chevron has been trying to discredit Ecuador's judicial system for years, and he questioned the videos' authenticity.

"Chevron either got very, very lucky on the eve of a verdict and actually tripped across a legitimate concern, or they helped to stage-manage a fictitious event," Mr. Bloom said. "Both possibilities have to be investigated."

Chevron has denied doctoring the videos or participating in the scheme and has said it took steps to verify the videos' authenticity.

Steven Donziger, an attorney for the plaintiffs in the original lawsuit, said the filing will have "minimal impact" on his case, but he said it is a sign Chevron is becoming desperate.

The plaintiffs in the lawsuit couldn't immediately be reached for comment.

Chevron's decision to seek international arbitration is the latest example of the company's increasingly aggressive strategy in the case, which includes a Web site to rebut plaintiffs' claims and an effort to lobby Congress to revoke Ecuador's trade privileges because of the government's alleged interference in the dispute.

Since Chevron has almost no assets in Ecuador, the plaintiffs will have to seek enforcement of any ruling in their favor in the U.S. or another country where Chevron operates.

Separately, the international arbitration process could take years. In its arbitration filing, Chevron claims that by allowing the lawsuit to go forward, the Ecuadorean government is violating a 1998 agreement that released the U.S. company from environmental liability in return for a $40 million cleanup paid for by Texaco.

The plaintiffs, a group of Ecuadorean residents, argue their case has nothing to do with the Ecuadorean government, so the agreement doesn't apply to their lawsuit. Ecuador's government says it has no control over the judicial process, although Chevron has argued the Ecuadorean judiciary is heavily influenced by President Rafael Correa.

If arbitrators reject Chevron's argument, it could make it harder for the company to fight enforcement of an adverse ruling. But if arbitrators agree that Chevron has no liability, legal experts said, it will be very difficult for plaintiffs to collect on any damages outside Ecuador.

Corporations have increasingly turned to international arbitrators in recent years to resolve disputes with governments. Companies often see the arbitration process as fairer than local courts.

Write to Ben Casselman at ben.casselman@wsj.com and Angel Gonzalez at angel.gonzalez@dowjones.com

Printed in The Wall Street Journal, page B2


The Online Version of the article included quotes from Bjorklund:

Multinational corporations, including energy companies, have increasingly turned to international arbitrators in recent years to resolve disputes with governments. Companies often see the arbitration process as fairer than local courts. But Andrea Bjorklund, a law professor at the University of California, Davis, said companies actually lose slightly more than half of their arbitration cases.

"By no means is it a given that (a company) is going to prevail," Prof. Bjorklund said.

And Donziger:

Steven Donziger, an attorney for the plaintiffs in the original lawsuit, said the filing will have "minimal impact" on his case, but he said it is a sign Chevron is becoming desperate.

"They have suffered a series of consecutive legal defeats in courts in courts in both the United States and Ecuador, which is forcing them to search for an international forum that they think will be more sympathetic," Mr. Donziger said.

The entire, original online version of the article is included in a PDF here.