Chevron beats back Ecuadorians’ challenge

Ontario’s courts can’t be used to enforce an Ecuadorian court’s $19billion judgment against Chevron Corp., an Ontario judge has ruled.

But the lawyer for the Ecuadorians vows to appeal the ruling and continue the fight.

Justice David Brown rejected the application by the Ecuadorians to enforce the Ecuadorian judgment against Chevron Canada.

Chevron Canada’s assets are not the same as those of the parent Chevron Corp., against which the judgment was rendered, Brown ruled.

“Chevron does not possess any assets in this jurisdiction at this time,” Brown wrote in his ruling. “Ontario courts should be reluctant to dedicate their resources to disputes where, in dollars and cents terms, there is nothing to fight over. The parties should take their fight elsewhere to some jurisdiction where any ultimate recognition of the Ecuadorian judgment will have practical effect.”

An Ecuadorian court had awarded a group of Ecuadorians the massive $19-billion judgment because Texaco, which was later taken over by Chevron, had polluted a swath of land and water in Ecuador between 1972 and 1990.

Since Chevron no longer has any assets in Ecuador, the Ecuadorians hired Toronto lawyer Alan Lenczner to get the judgment enforced in Ontario. But Brown ruled that Chevron Canada “has its own business” and is not completely subservient to the parent Chevron Corp., so Chevron Canada’s assets are not identical to those of the parent firm.

Lenczner vowed to appeal.