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San Francisco ChronicleNew twist unfolds in Ecuador v. Chevron
By DAVID R. BAKER San Francisco Chronicle
March 11, 2010, 11:11PM
Chevron Corp. won a round Thursday in the long legal fight over oil field contamination in Ecuador, with a U.S. judge ruling in New York that the California-based company can pursue arbitration in the case. But the final outcome of the fight, which could cost Chevron $27.3 billion, remains in doubt.
Residents of Ecuador's rainforest are suing Chevron over polluted soil and water, saying contamination from oil wells has sickened and killed people. Chevron argues that the trial, held in the Ecuadoran town of Lago Agrio, has been tainted by government interference and possible corruption.
So last year, Chevron filed an international arbitration claim against the Ecuadorean government, asking an arbitration panel to hold the government and its state-run oil company, Petroecuador, responsible for cleaning up the country's oil fields.
In response, the Ecuadoran government and the lawsuit's plaintiffs asked a U.S. court to block the arbitration request, which they saw as Chevron's last-ditch attempt to derail the lawsuit. The company, plaintiffs said, feared losing in Ecuador and was “shopping” for a friendlier forum.
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