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Chevron can try to freeze the assets of a group of Ecuadoreans who the company claims used fraud and extortion to win a $18.2 billion judgment against it for environmental damage in the Amazon, the 2nd Circuit ruled.

U.S. District Judge Lewis Kaplan has not yet ruled on Chevron’s Nov. 29 motion, which says the Ecuadoreans are hiding their money in offshore bank accounts and should surrender their assets to the custody of U.S. Marshals.

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There was a very interesting paragraph near the end of Burford Capital’s announcement Monday that it has acquired a British litigation insurance provider. Burford, you may recall, is the litigation-finance company that in November 2010 made a controversial $4 million investment in the Ecuadorean litigation accusing Chevron of despoiling the Lago Agrio region of the Amazonian rainforest. Burford put up the money to pay the plaintiffs’ new lawyers at Patton Boggs after Chevron’s counsel at Gibson, Dunn & Crutcher succeeded in driving their longtime lawyer, Steven Donziger, out of the litigation.

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The Chevron Ecuador trial is mentioned in Reuters’ overview of current events in the country:

A judge ordered Chevron in February to pay $8.6 billion to clean up pollution at old drilling sites in the Amazon. Chevron denies the charges, and the 17-year-old legal saga looks far from over as both sides appeal.

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Coverage of Chevron’s filing of a motion for attachment in the fraudulent lawsuit against Chevron in Ecuador:

Chevron Corp. on Tuesday filed a motion for attachment, seeking to prevent the Ecuadorian plaintiffs suing the company from collecting any monies based on what it describes as a “fraudulent judgment that they have obtained through collusion with a corrupt Ecuadorian court.”

Chevron’s 36-page motion relates to its fraud and RICO claims against the Ecuadorian plaintiffs.

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More coverage of the Chevron Ecuador trial and the International Tribunal in the Hague which ordered Ecuador earlier this year to prevent enforcement of any judgment against Chevron:

The tribunal, working under The Hague’s Permanent Court of Arbitration (PCA), ordered the Republic of Ecuador in February to suspend enforcement of any judgment in the lawsuit filed by rainforest dwellers against Chevron, Reuters reported.

Chevron lost that case a few days later, as the company had expected. A New York judge then sought to freeze the $18 billion judgment against the second-largest US oil company – before he was overruled on appeal.

Chevron, arguing the judicial process in Ecuador was corrupted, is now banking on the arbitrators, who must first decide whether they will become the latest body to weigh in on what has become a landmark international legal battle.

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The Chevron Ecuador case is referenced in this piece on litigation funding by outside investors:

Institutional investors are casting around for sources of uncorrelated returns. One potentially lucrative area is that of litigation funding, financing large corporate lawsuits in exchange for a cut of any settlement or damages. … Chevron is locked in a legal battle with a group of Ecuadorian Indians over environmental damage done decades ago in the Amazon. The case against the oil company is financed by Burford Capital. Burford Capital is one of two Aim-listed vehicles (the other is Juridica) that have attracted investment from a number of fund managers, including Mr Woodford, Sanjeev Shah at Fidelity and Baillie Gifford. None were available for comment on possible conflicts of interest, however Mr Woodford does not invest in US companies such as Chevron.

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This blog post discusses the Global Lawyer piece which talks about the Chevron Ecuador case and how arbitrators may order Ecuador to make Chevron whole for $18 billion:

The American Lawyer’s Michael Goldhaber predicts that American oil giant Chevron will come out on top in the decades-long battle over up to $18 billion in compensation for environmental damage in Ecuador.

“The moment that the arbitrators order Ecuador to make Chevron whole for $18 billion, all of the case dynamics are turned upside down. Suddenly Ecuador’s interests are no longer aligned with the plaintiffs. Suddenly, it is Ecuador and Chevron who share a common interest. And that interest is in dismissing the case, or vastly reducing the verdict.”

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Coverage of Chevron’s FOIL request for documents regarding connections between the New York Comptroller’s office and plaintiffs’ representatives in the Chevron Ecuador case:

“All legitimate scientific evidence submitted during the litigation in Ecuador proves that TexPet’s remediation was effective and that the sites it remediated pose no unreasonable risks for human health or the environment,” Chevron officials have pointed out. Moreover, Ecuador’s state-owned company, Petroecuador, was actually the majority owner of the consortium that included Texaco and bears responsibility, with the government of Ecuador, for any environmental damage that has occurred in the region, Chevron has argued.

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