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Cake day: June 10th, 2023

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  • Chevron’s $220 million award against Ecuador is far below the more than $3 billion the company had sought, and represents legal fees the firm spent related to its Ecuadorian operations, including costs spent defending itself against a class-action-style lawsuit that resulted in a $9.5 billion judgment against the company, issued in 2011.

    The validity of that Ecuadorian judgment, a ruling affirmed by the country’s highest court, was at the heart of the ISDS arbitration. In 2018, the arbitrators declared the $9.5 billion judgment fraudulent, finding that Ecuadorian courts had treated Chevron unfairly and that the government was wrong to let the ruling stand.

    The 2018 ruling was based on evidence that the lawyers who had won the $9.5 billion judgment did so by forging an expert’s signature, blackmailing a judge, facilitating the ghostwriting of a key piece of evidence and bribing other Ecuadorian judges — acts the lawyers either denied or said weren’t illegal in Ecuador at the time.

    Interesting.