Energy giant Chevron can breathe a little easier after the Second Circuit overruled a lower court award of $9.5 billion, finding that the judgment was “procured by corrupt means” and attorney fraud. It’s a gigantic win for a gigantic company that has the potential to set the tone for international business litigation strategies.

The attorney who is at the center of this reversal-slash-scandal is Steven Donzinger whom Chevron accused of conducting a “shake-down” of the company. Donzinger’s lawyer called the circuit’s decision “unprecedented.”

Motion practice saw the case move to Ecuador where the judge there ruled in favor of the plaintiffs to the tune of $18 billion. On appeal, that number was later reduced to $9.5 billion by Ecuador’s highest court. Chevron negotiated the case back to the U.S.

Fraud?

Once back in the States, Chevron attacked the $9.5 billion award by arguing that human rights lawyer Steven Donzinger engaged in illicit conduct ranging the gamut from bribery and fraud to “shake downs.” In 2014, a lower federal district court ruled that the judgment in Ecuador was “procured by corrupt means.” And since fraud was at issue, the judge of that court, Hon. Lewis Kaplan, penned his findings with particularly-particular particularity. The whole opinion was 500 pages long. Court papers chronicled how civil rights lawyers pushed for sanctioning of opposing counsel and launched a negative-smear campaign against Chevron and associated parties.

Not Over Yet

Spokespeople for the petitioners are not licked yet and have promised litigation in other countries where Chevron’s capital is located.

Related Resources:

  • Court Revives Suit Over Anti-Male Bias in Campus Sex Assault Investigations (FindLaw’s U.S. Second Circuit Blog)
  • 2nd Circuit Decertifies Class After Jury Returns $32M Verdict (FindLaw’s U.S. Second Circuit Blog)
  • Microsoft Doesn’t Have to Turn Over Emails on Foreign Servers (FindLaw’s U.S. Second Circuit Blog)

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