In the northeastern corner of Ecuador, near the headwaters of the Amazon River, lies the ramshackle Ecuadorean city of Lago Agrio, or Nuevo Loja (its official name). There, in a run-down courthouse, corporate lawyers employed by Chevron have been fighting for years with a group of determined plaintiffs’ lawyers.
The plaintiffs — some 30,000 residents of Ecuador’s Amazon Basin known as the Amazon Defense Coalition and backed by Philadelphia plaintiffs’ firm Kohn Swift & Graf — hope to hold the Chevron accountable for environmental abuses committed by Texaco, which Chevron bought in 2001. For details on the Texaco abuses, you can read a report at http://www.chevrontoxico.org/d… or go to http://www.vanityfair.com/poli… for a much more entertaining account. Chevron is represented by mega-corporate law firm Jones Day, which has thousands of lawyers around the world.
Texaco spent 30 years in the region, pumping billions of gallons of oil hundreds of miles west over the Andes to Ecuador’s port cities for shipment to the U.S. Lago Agrio was the classic oil company town. Even the name shows it — “lago agrio” is Spanish for “Sour Lake,” named after Sour Lake, Texas, which was Texaco’s corporate headquarters. The area around the city has many ecological problems. The rainforest has been all but obliterated, in this region and environmental degradation is severe, with catastrophic oil pollution in some areas. The area is referred to as “the Amazon Chernobyl.”
The lawsuit accuses Texaco of dumping 18.5 billion gallons of toxic waste into Amazon waterways from 1964 to 1990, decimating the ability of the indigenous groups to live off the rainforest (as they had done for eons). Texaco also built roughly 1000 unlined open-air waste pits that have been leeching toxins into the soil and groundwater for decades. The picture to the left is of one such pit.
Now Newsweek reports that Chevron received some unwelcome news in April; a court-appointed expert recommended that the company be ordered to pay $8 billion to $16 billion to clean up the jungle and any waterways ravaged by oil pollution. And so Chevron is doing what corporate America always does — it is turning to Washington for help. It has assembled a strong team of lobbyists, including former Senate Majority Leader Trent Lott, former Democratic senator John Breaux, and Wayne Berman, a top fund-raiser for John McCain. Chevron wants the Bush administration to revoke special trade preferences for Ecuador if the country doesn’t put the kibosh on the Lago Agrio proceedings — now in their fourth year. Note that in American courts, this would be impossible, and almost certainly illegal. What does this tell us about why large corporations do not serve American interests as goodwill ambassadors around the world?
“The ultimate issue here is Ecuador has mistreated a U.S. company,” Newsweek quotes one unidentified Chevron lobbyist as saying. (The company claims that it’s the victim of a corrupt Ecuadorean judicial system.) “We can’t let little countries screw around with big companies like this — companies that have made big investments around the world.” What Chevron doesn’t tell you is that Chevron already had agreed to submit to jurisdiction in Ecuador and be bound by the court’s decision when years ago it requested the case be transferred out of U.S. federal court. I infer that they thought that they could buy the Ecuadorean government. Unfortunately for them, a more liberal, anti-Chevron government won last year’s elections, causing Chevron to think that perhaps they’ll just have to buy the U.S. government instead.
But the plaintiffs aren’t rolling over; Newsweek reports that after the lead plaintiffs’ attorney Steven Donziger made a presentation to Barack Obama several years ago (did I mention that Donziger and Obama played basketball together at Harvard Law School 20 years or so ago?), Obama co-wrote a letter with Pat Leahy to U.S. Trade Rep. Rob Portman, urging Portman to keep the American government out of this, and to let the Ecuadorean court system do its work.
An Obama spokesperson confirmed to Newsweek last week that his position on the matter remains the same.
Leaders from Ecuador’s rainforest — from the Cofan, Secoya, and Siona tribes — are planning a trip to Washington, D.C. in September to talk directly with Members of Congress and to Portman (unless he is the Vice-Presidential nominee; he is rumored to be on McCain’s “short list.”)
“We are coming to tell the truth about Chevron’s desperate attempt to quash the legal claims of thousands of vulnerable people in the Amazon rainforest who are struggling to survive due to oil contamination,” said Pablo Fajardo, the lead Ecuadorian lawyer for the plaintiffs.
“These people deserve their day in court without interference from Chevron,” he added. “Chevron must respect the rule of law.”
A final decision in the case, which could lead to the largest ever damages award in an environmental lawsuit, is expected next year.
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