U.S. court rules for Chevron in Ecuador rainforest damage case

NEW YORK — Ecuadoran plaintiffs cannot collect a $9 billion judgment in the U.S. against Chevron for rainforest damage, a federal appeals court ruled Monday, upholding a judge’s finding that the judgment was obtained through bribery, coercion and fraud.

A Chevron vice president and general counsel, R. Hewitt, Pate, said the San Ramon company was “pleased that the truth has prevailed over fraud and corruption.”

In a decision written by Circuit Judge Amalya Kearse, a three-judge Second Circuit panel rejected the argument by the Ecuadoran plaintiffs that they were unaware of wrongdoing by lawyers in the case and shouldn’t be held responsible.

“There is no authority suggesting that a party ignorant of its attorney’s fraudulent actions may enforce a fraudulently procured judgment,” the panel said.

An attorney for a New York City lawyer, Steven Donziger, who was heavily criticized by Kaplan, called the ruling “unprecedented in American law” and vowed to explore all options on appeal.

The judgment was for environmental damage caused by Texaco during its operation of an oil consortium in the rainforest from 1972 to 1990.