Wednesday, December 14, 2011

West Virginia, Ecuador and the Legal System

Some West Virginians see the the state as one that was (and is) dominated by out-of-state coal, oil and gas and land  companies that manipulated the political and judicial process in order to take the state's treasures and leave it with little but environmental liabilities. Those who feel that way probably feel some kinship with the inhabitants of the Ecuadorian rain forest, who brought suit against Texaco, later purchased by Chevron, and won a multi-billion dollar judgment against the company for natural resource damages and personal injuries. The story was compelling - a large multinational was taking advantage of  the less sophisticated natives and destroying the land.  A documentary, Crude, was made about the lawsuit.

How much of that story is true, I couldn't tell you. But it was interesting to find out that the substance of the Ecuadorean lawsuit has been called into question.  Ann Meist, a member of Strauss Consulting and one of the experts who helped prepare the case for groundwater contamination against Chevron, is caught in a  film outtake in which the lead American lawyer, Steven Donziger, appears to be suggesting that a public outcry, rather than facts, are all that is needed to win the case in an Ecuadorian court. The clear impression I took away is that the contamination was not nearly as great as represented by Donziger and Meist in court.

Chevron has filed a RICO action against Donziger, Meist and others, alleging that they conspired to extort money from Chevron by means of a specious legal action in Ecuador, using ginned-up data and misrepresentations. It's an interesting read.

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