What’s Chevron’s Ecuador Play in Canada?

The big news in the ever-ongoing Chevron/Ecuador dispute is the recent decision by the Supreme Court of Canada rejecting Chevron’s ultra-preliminary attack on the Ecuadorian communities’ ability to seek to enforce their historic $9 billion environmental judgment against the company in Canada. The attack was bogus from the get-go; a little noticed fact is that no Canadian court embraced the theory that Chevron ultimately presented to the Supreme Court, but based on a strange petition/counter-petition process it ended up there anyway.

The frustrating part is that this victory — a huge one for the communities, at Canada’s highest court — really only starts the process at what should have been the beginning. Through aggressive (to the point of abusive) lawyering, Chevron wins another three years time evading the Ecuador judgment and wastes a ton of the communities’ resources in the process. A sadly familiar story in this case.

That said, beginning the enforcement process genuinely in Canada is undeniably huge. The litigation shenanigans will continue, but Chevron’s options are dwindling. Chevron is particularly scared of Canada because certain unique features make their primary line of defense — the “corporate veil,” or in Chevron’s case, no less than seven corporate veils between Chevron Corp. and its Canadian assets — potentially irrelevant, a true Maginot Line.

Chevron recently filed its “answer” to the enforcement petition, which outlines its strategy ahead. Some early comments are provided by The Chevron Pit. Chevron’s approach is pretty much as expected. Chevron wants to relitigate every issue that it lost in Ecuador, including issues that are clearly questions of Ecuadorian law for the Ecuadorian courts. Good luck with that.

It is also jump-starting the ol’ “demonization” campaign, in which the company tried to taint the Ecuador judgment and the communities with allegations of bribery and fraud, but did so by relying of paid-for “fact” testimony from a ridiculously corrupt witness (whose testimony has now been disproven by forensic analysis), and by blowing out of proportion a handful of controversial issues in the Ecuador trial process — issues that were raised and addressed on multiple layers of appeal in Ecuador.

As long as the system as a whole got it right — and Ecuador’s system certainly did so in this case — complaints about this or that at the trial level have no bearing on the final judgment and are likely to be ignored by Canadian courts.

The fact that, in Canada, Chevron lawyers appear to be “going all in” on the corrupt bribery witness despite his disproven testimony, and that fact that he was an embarrassment in a related arbitration proceeding, is revealing of just how few options Chevron has left. They would have left this witness in the dust and moved on by now, if they could.

Chevron’s infamous “fight it out on the ice” strategy continues slip-sliding away