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Zorro Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-17-10 10:30 AM
Original message
Evidence of fraud mounts in Ecuadorian suit against Chevron
Interesting read.

<snip>

A lawsuit against Chevron in Ecuador, which has become a cause célèbre for environmentalists worldwide, has suffered severe, crippling setbacks in recent months, as key plaintiffs lawyers have come under credible and weighty allegations of fraud.

The accusations threaten to disrupt yet again a protracted, bitter, emotional, 17-year-old suit filed on behalf of Indians of the Ecuadorian Amazon who seek environmental clean-up of lands where Texaco-acquired by Chevron (CVX, Fortune 500) in 2001-drilled for oil between 1965 and 1990.

Over the past ten months, Chevron's outside lawyers at Gibson, Dunn & Crutcher have filed 11 civil actions in federal courts across the United States, each designed to pull back the curtain on what they say is an elaborate, two-year-long charade in which plaintiffs lawyers covertly planned and ghostwrote a crucial report on damages that was ostensibly being authored by an independent expert appointed as an "auxiliary" to the Ecuadorian court. The expert's final report, issued in November 2008, recommended that Chevron pay the plaintiffs $27.3 billion.

Since June, federal judges and magistrates in Newark, San Diego, Asheville (North Carolina), and Albuquerque have all looked at what Gibson Dunn's come up with so far and opined that it looks like "fraud" to them.

<snip>

Read the whole article at: http://money.cnn.com/2010/09/13/news/international/chevron_ecuador_litigation.fortune/index.htm?section=money_mostpopular
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flamingdem Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-17-10 01:19 PM
Response to Original message
1. Do you believe this report ? nt
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Zorro Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-17-10 02:32 PM
Response to Reply #1
2. The article seems to be a fair and accurate report
Is there something you read in the report that is incorrect?

There's been a recent, somewhat relevant US court case where charges were dismissed against a major corporation because of fraudulent activities by the plaintiffs. It happens.

<snip>

Dole Food Company, Inc. today announced that the Los Angeles Superior Court dismissed Tellez v. Dole, the last remaining lawsuit brought by Nicaraguan plaintiffs claiming to have been banana workers on Dole-contracted farms in Nicaragua during the 1970s. The dismissal came as a result of the Court's finding that plaintiffs and their representatives engaged in "blatant fraud, witness tampering, and active manipulation."

In dismissing this lawsuit, the Court vacated the earlier $1.58 million judgment against Dole in favor of four of the 12 plaintiffs claiming sterility from DBCP exposure while allegedly working on Dole-contracted farms.

This result was the culmination of hearings conducted by the Court in response to the July 7, 2009 order issued to plaintiffs by the California Second District Court of Appeal directing them to show cause why this $1.58 million judgment should not be vacated and judgment be entered in Dole's favor on the grounds that the judgment was procured through fraud.

Issuing her ruling in court today, Justice Victoria Chaney stated that plaintiffs did not devise this fraud on their own. "It is not reasonable to conclude that 14,000" claimants were made sterile by DBCP. "Some or all of the claimants have brought fraudulent claims." The Court explained that there had to be – and found that there was – a coordinated effort "to bring fraudulent claims to our courts" by plaintiffs' attorneys. Los Angeles attorney Juan Dominguez "was and is actively involved in activating and perpetuating this fraud and scheme on the Court", ruled Justice Chaney.

<snip>

More at: http://www.dole.com/CompanyInformation/PressReleases/PressReleaseDetails/tabid/1268/Default.aspx?contentid=11722
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flamingdem Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-17-10 03:03 PM
Response to Reply #2
3. I doubt it just having heard about the intimidation tactics used by Chevron nt
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naaman fletcher Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-18-10 04:28 AM
Response to Reply #2
10. Yes but,
Chevron moved to have it tried in Ecuador, not the U.S.

My personal opinion based on everything that I have read, and I am familiar with the industry, is that Chevron is liable for something significant. They tried to get out of it, it's now backfired. There probably is fraud, and Chevron's "true" liability is probably much closer to 5 billion than 27 billion, but then again that's what they get for trying to pay nothing.
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Zorro Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-18-10 12:04 PM
Response to Reply #10
11. Chevron made a strategic error in how they approached the situation
No doubt there is some residual liability on their part, and they probably decided to request jurisdiction be moved to Ecuador -- where the judiciary system is quite corrupt -- in anticipation they could bribe their way to a settlement satisfactory to them.

However, the lawsuit does raise other questions -- what is the culpability and liability of PetroEcuador, the government-run oil company, in this situation? I think it may own the greater responsibility for polluting the environment, since it has exercised effective control over oil and gas production for almost the past 20 years.

Adding to the problem is the general attitude of Ecuadoreans about pollution and ecology. Despite living in a very biodiverse environment and nascent attempts to codify environmental concerns in their recently enacted constitution, I think the majority has no great appreciation for their environment -- which is a shame.

But getting back to the lawsuit, yes Chevron probably bears some additional responsibility to address the environmental problems. But $27 billion (and now reportedly almost triple that amount)? I believe those aren't credible amounts, and what's really going on is an attempted shakedown by US-based lawyers with the support the Ecuadorean government, with little concern for those actually living in the affected areas.
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naaman fletcher Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-18-10 01:19 PM
Response to Reply #11
13. i agree totally,
and you make a good point. Western environmentalists tend to have this romantic idea of 3rd worlders trying to live in harmony with the environment. It's complete and utter BS. You have no idea how many times I've seen Panamanians dump trash out the window of their cars as they drive along. Same thing in Africa.
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Zorro Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-18-10 11:26 PM
Response to Reply #13
17. The myth of the "noble savage"
manifests itself again and again in LatAm threads; it is a romantic misconception by posters who have never been to the region that is actually quite patronizing. And yet they get highly offended when it's suggested that they could gain better insight into life in Latin America by actually traveling to the region.

In Latin America it is all too common -- and quite disturbing -- to follow a car or bus and watch the riders toss all sorts of trash out the window. It's also quite disturbing to see the accumulation of non-biodegradable garbage strewn about campesino homes in the countryside.

Recently I had a discussion with a local school administrator about this apparent lack of interest in environmental issues by the general Ecuadorean population, and he had an interesting theory. He attributed this attitude to the centuries of poverty and the lack of opportunity to acquire property (because most land was controlled or owned by the aristocracy) -- so the attitude ingrained into the Ecuadorean psyche was that it didn't matter if they trashed the environment, because they had no ownership.

I don't know if I necessarily agree with him, but I nevertheless thought it an interesting explanation. One hopes that attitudes will change.
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EFerrari Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-17-10 03:43 PM
Response to Reply #1
4. Did you ever see Greg Palast's piece on this suit?
He has this great video where he was interviewing the vampire lawyers. And they say outright, first, cancer happens all over the world. Second, you'd have to prove oil caused these cancers and then you'd have to prove OUR oil caused these cancers and that is impossible.

And they laughed.
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EFerrari Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-17-10 03:50 PM
Response to Original message
5. Maybe you should start a weekly thread that posts
press releases from corporations against working people in Latin America. It would sure save me a lot of time.

lol
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Zorro Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-17-10 03:56 PM
Response to Reply #5
6. Perhaps you could point out the errors in the press release
Or do you support the filing of lawsuits based on claims judged fraudulent?
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EFerrari Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-17-10 04:00 PM
Response to Reply #6
7. No, I will sit back and admire your advocacy for Dole and Chevron.
:)
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Zorro Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-17-10 07:35 PM
Response to Reply #7
8. Is Judge Chaney or the California Second District Court of Appeal corporate advocates?
They made rulings favorable to Dole, after all.

I see where the Ecuadorean plaintiffs are estimating damages to be almost $80 billion now.

Seem reasonable or realistic to you?
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subsuelo Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-17-10 11:56 PM
Response to Reply #5
9. that's exactly what CNN is n/t
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Peace Patriot Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-18-10 12:36 PM
Response to Original message
12. This is good example of the colossal evil of multinational corporate rule.
There is NO QUESTION that this oil spill--the size of Rhode Island, which has often been called "the rainforest Chernobyl"--is Chevron's liability. And there is NO QUESTION that it has caused immense human suffering as well as incredible destruction of the environment. The question is--and this is the question for all of us, in a multinational corporate-run world: How to enforce such liability when multinational corporations have all the money, all the power, all the law firms, all the lobbyists, all the judges, all the politicians, all the P.R. firms, all the "think tanks," and all the corpo-fascist media outlets, all on Chevron's side--except for a few judges and political leaders in small countries like Ecuador where democracy has prevailed--and, in addition, have paramilitary/mercenary thugs and assassins, CIA black ops and psyops, the USAID, the U.S. state department and the U.S. military, and formidable economic warmongers like the World Bank/IMF arrayed against the justice, democracy and sovereignty of other countries that the U.S. wants to control on behalf of multinational corporations and the super-rich?

How can Chevron's liability be enforced, in the face of Chevron's immense monetary, political, media and bully power?

Just think of this scenario: The indigenous tribes who filed this lawsuit, with ONE, self-educated, Indigenous lawyer--a lawyer who couldn't even afford a fax machine--and have carried this lawsuit forward for more than a decade, despite every difficulty imaginable--finally win it. Chevron owes them some $30 billion for long term health care and restoration of the rainforest environment. Who is going to force Chevron to pay up? Not the United States, where corpo-fascist judges abound in the court system, where the government is basically run by multinational oil corporations, and even commits heinous acts of war on their behalf, and where the government is pouring millions of USAID and other funds into rightwing groups in Ecuador and other countries to overthrow their governments, so that the people in these countries can't defend their sovereignty and their rights against U.S. multinationals. Not the U.S.-dominated World Bank/IMF, if it is arbitrated. Not other corporate-run countries allied to the U.S. (for instance, the U.K. and EU countries who also exploit Latin America). Where is there justice for the poor? How does the law get enforced on behalf of the poor?

The Ecuadoran government and its allies in Latin America might mount a boycott and try to kick Chevron out of the region. (Chevron has contracts, for instance, in Venezuela.) But there is no power strong enough to make Chevron pay up. And they won't pay up, believe me.

Now back up a minute, and return to this moment, where an Ecuadoran court seems prepared to rule against Chevron. Chevron and their multinational brethren know that U.S. Oil War II is probably a couple of years off. (--although, with this latest FBI/CIA operation against Venezuela--setting up a sting on U.S. nuclear scientists that used Venezuela as MYTHICAL bait, to get headlines and ledes around the world, in the corpo-fascist press, associating ENTIRELY INNOCENT Venezuela with seeking a nuclear weapon--you gotta wonder if they are going to wait for Sarah Palin to be Diebolded into the White House). Chevron & pals can't yet kill the judge and overthrow the government--or get the U.S. military to do it. Among other things, they and their Bush Junta front people bankrupted the USA (--although you wouldn't know it from the billions of U.S. tax dollars that the Obama team continues to pour into arming Colombia--a country with one of the worst human rights on earth). But what they CAN do--what they can EASILY do--is slander the victims, to set up the 'news'/psyops narrative for why they won't pay. They have virtually unlimited resources to ferret out and grossly exaggerate the slightest error in the victims' case; to employ mafia thugs to entrap innocent judges (which they did to the first judge in the Ecuadoran court); to bully and bribe whoever needs to be bullied and bribed; to file cases against the victims in dozens of U.S. courts, where they know the judges and who appointed them and why; and to do whatever they want to do, to entirely exhaust the Indigenous tribes and their advocates and crush them under foot.

Chevron should LONG AGO have recompensed the thousands of poor victims of their oil spill and should have restored the rainforest environment that they destroyed, to the limit of the human ability to do so. All of our lives depend on that rainforest. It is a critical component of the "lungs" of Planet Earth. It is not just the many cancer cases and miscarriages and other health impacts on the immediate victims; it is not just the destruction of their livelihoods with the vast loss of fisheries, clean water, farm land and wildlife; it is not just local children drinking oily water and take showers in oily water. The Amazon rainforest is the biggest carbon sink on the planet. Every untouched part of it and every impacted but salvageable part of it must be saved, IF THE HUMAN RACE IS TO SURVIVE the industrial age. The stakes are human life itself, everywhere.

That Chevron has not LONG AGO recompensed these victims and restored the vast area of rainforest that they destroyed, and that they have used their immense, ungodly power and wealth to REFUSE to do so, is a paradigm of the oppression that we are all suffering under multinational corporate rule. When a corporation is multinational, it has loyalty to NO ONE. It becomes a gigantic rogue player over the world--a country unto itself--gobbling up resources, land, wealth and power, and OVERRIDING the sovereignty of the people in every country that it gets its talons into. The people, the environment, are NOTHING to such a gigantic, international entity.

Someone here--one of DU's rightwing posters--said something like this, 'Well, don't they have a legal point?' 'Is it fair that the victims helped write an expert's report?' Setting aside the probability that Chevron is LYING--that no such thing occurred--and setting aside the victims' limited resources (maybe they couldn't pay for the expert to have assistants and had to do the work themselves? --believe me, I've done environmental lawsuits and I know what that is like--NO MONEY up against UNLIMITED RESOURCES), the blindness of such a comment is staggering. "Fairness"...to Chevron? What Chevron deserves, in all FAIRNESS, is to be put into public stockades and drenched with buckets of oil and toxic goo. What Chevron's executives and lawyers and P.R. firms and bought-and-paid-for politicians and major investors deserve, IN ALL FAIRNESS, is life sentences for MURDER--of people and planet--with community service in shackles as their punishment. These "lords of the earth" deserve to be held accountable for what they've done. And that is what they have done--callous, cold-blooded, greed-driven murder of people who don't count--the poor, the brown--and of Mother Earth.
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naaman fletcher Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-18-10 01:24 PM
Response to Reply #12
14. hold on a sec..
I have no doubt that Chevron has a liability here, and they are getting their just desserts for not owing up to it, but why do you discount the idea that petroecuador might have some responsibility? It is because you think Ecuadorans would not pollute their own country?
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Peace Patriot Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-18-10 03:11 PM
Response to Reply #14
15. I know quite well what Ecuadoran fascists would do to their own country
And I would put those executives and profiteers into the stockade with Chevron. But that is for the Ecuardon justice and political systems to deal with--which they began to do when they threw the facist bastards who colluded with Chevron out of power. Chevron is a U.S.-based multinational and a much, much, MUCH bigger problem.
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naaman fletcher Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-18-10 03:18 PM
Response to Reply #15
16. I just don't think,
that pollution is a left/right political issue. Russia and Eastern Europe were horribly polluted. So was China even before capitalism came. Personally I have observed Americans as a whole being much more environmentally aware than central americans.
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Peace Patriot Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Sep-20-10 09:49 AM
Response to Reply #16
18. Ecuador is in South America, and their leftist government promoted a provision of
the Constitution that established the right of Mother Nature ("Pachamama") to exist and to prosper apart from human needs and desires--the first such provision in the world. I can't remember right now what the exact vote was, in favor of this Constitution, but it was HUGE--over 70%.

Protecting the environment is a VERY BIG leftist issue in South America. It has been pivotal in a number of leftist democracy movements that overturned a century of rightwing rule--Paraguay and Bolivia being prime examples. This is in part due to the influence of the Indigenous, campesinos (peasant farmers) and farm workers, who are the most vulnerable to corporate pollution (for instance, toxic pesticide spraying) and whose livelihoods depend upon clean water, unpolluted farm land, healthy forests and wildlife, climate stability, and other environmental factors--and who have been COMPLETELY DISREGARDED and often brutally repressed by rightwing/fascist rulers in collusion with the U.S. government. The left includes these poor farmers, farm workers and Indigenous tribes all over Latin America, because the left is democratic. You really have to understand that the leftist movement in Latin America is NOT the same, in any respect whatsoever, as the communist revolution in Russia, Eastern Europe or China. It is DEMOCRATIC. Thus, the desire of MOST people for a healthy environment, and the leadership of campesinos, farm workers and the Indigenous--who favor organic agriculture and, in the case of the Indigenous, whose religion requires organic agriculture (reverence for Pachamama)--are INCLUDED, and CAN BE HEARD.

The U.S. government promotes the 'right' of its corporate puppetmasters to destroy the earth for profit, provides rightwing/fascist governments with military aid (the corrupt, failed, murderous U.S. "war on drugs") to enforce corporate rule and actively promotes U.S. toxic agriculture as part of its corporate welfare program. The U.S. 'solution' to the drug problem by toxic pesticide spraying of small farms--where the farmer may grow a few coca leaves for local use (it's an indigenous medicine) but who mostly grows FOOD--poisoning the food crops, the land, the farm animals, and the children and adults living there--was THE issue that catapulted Evo Morales into a political career that ended up with his election as president of Bolivia. He remains, even now, the head of the coca leaf farmers union. The struggle against U.S. toxic pesticide spraying was how he got beaten up by the police early in his labor organizing career!

The environment is at the heart of the Bolivarian Revolution--even in much more industrialized Venezuela, where the Chavez government is converting Venezuelan agriculture to organic, has been responsive to Indigenous concerns about mining (shut the mining down!), and also revolted against U.S. "war on drugs" toxic pesticide spraying. Monsanto 'frankenseeds' is another such issue, as well as multinational corporations gobbling up land (dispossessing small organic campesinos from their land--as is occurring massively in Colombia), and conversion of farm land to biofuel production. Brazil's leftist movement (Lula da Silva's Workers' Party) has a much more mixed record on the environment than the Bolivarians, but it does include a component of environmentalists (which includes farm workers, campesinos and the Indigenous), and it has been far, far more protective of the Amazon than rightwing governments.

As for Central America, I know that land dispossession is a big issue in the Mexican leftist movement. (Land dispossession of peasant farmers = land acquisition by toxic corporate ag). And forest restoration is a big issue in Nicaragua's leftist government. I would guess that the environment is an important issue--and in some cases a hugely important issue-- wherever leftist democracy movements have succeeded in electing a leftist government, and in countries where a strong leftist movement has developed (as in Mexico). I don't know all the details of all of them. But in the situations that I do know quite a bit about, the environment is at the heart of most issues: who owns the land, what may be done to the land, what the land may be used for.

I think that North Americans are pretty much living in "La La Land" on environmental issues. We ONCE had a democracy here that was responsive to the 80% pro-environment American public. I don't think that that percentage has changed, but the government HAS changed. Multinational corporations now rule in the U.S., and their method of ruling here is to create the ILLUSION of democracy, and the ILLUSION of environmental protection, while they completely sabotage environmental regulation and the will of the people. I have particular expertise on forest issues, and I can tell you, without reservation, that forest regulation in California, for instance--touted as the most stringent in the world-- is WORTHLESS. It has been privatized and entirely sabotaged. Not just poor. Not just spotty. WORTHLESS!

Shocking, eh? I can give you chapter and verse on this one--if you want me to go into it. And I don't think it's unique at all. I think it is pervasive that U.S. environmental regulation, once the strongest in the world, has largely become an illusion. It looks good on paper. It ain't real. And we are in extreme peril because of this. For instance, the "food chain" that supports life itself has been severely frayed and is in peril of being BROKEN--by a combination of rape of the land with pesticides, chemical fertilizers and monoculture, and deregulation of the quality, and the genetic viability, of food. There are alarm signals all over the place--bee die-off's, frog die-off's, drying up of aquifers, our own obesity and lack of good nutrition, and on and on. The will of the people has been OVERRIDDEN.

In Latin America, the will of the people has been overridden for centuries--mostly OUR doing (or that of our corporations)--so they have a lot of problems to fix--Chevron-Texaco's vast oil pollution in Ecuador being one of them--and some countries are just now attempting to "bootstrap" their poor populations with development, and will be facing critical decisions as they do this. But I think that their rejection of U.S. corporate rule and the U.S. "war on drugs" is a good sign. They have the chance to do what we would LIKE to do--start all over again, when the U.S. was still forested, when its waters were still pristine, when its land was still fertile, when its wildlife was still abundant, when its apples still had many varieties, when its tomatoes still tasted like tomatoes and not cardboard, before its people became sick with corporatized Frankenfood.

Ecuador is still, on the whole, a paradise. And there are still regions, mostly in South America, where Mother Nature has survived, largely in tact--because of their remoteness or for other reasons. Now is the critical moment for them to be saved and for people--the people there and the people here--to find a new (old?) way of living in harmony with Nature. Many Indigenous elders have been warning us for some time that Mother Nature's condition is grave, due to the last hundred years of industrialization and now globalization. The leftist democracy movement in Latin America is the FIRST TIME they have had a voice, BECAUSE this movement is DEMOCRATIC--unlike what happened in Russia, Eastern Europe and China. Interestingly, Cuba has been the exception, as to communist governments. It has already converted to organic agriculture, and this may be something of a measure of how democratic Cuba actually is. (It's really a hard government to categorize--part monarchy, part democracy, part "salsa"--art, music, Caribbean culture very big--with remnants of Soviet-style central control, etc.). These days I think that organic agriculture is almost a definition of democracy--perhaps because it is so fundamentally opposed to corporatization and all of its ills, at the very core of human life: Nature and its "food chain."
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