Chevron Fined $8 Billion, But It’s Not Yet Reaching for Its Checkbook
The Wall Street Journal
February 14, 2011
An Ecuadorian Court ordered oil-giant Chevron to pay $8 billion for contamination of Ecuador’s northern jungle. It is unclear what will happen with this judgment since Chevron filed an arbitration claim under international law in 2009. Chevron continues to argue that the Ecuadorian court’s judgment is “illegitimate and unenforceable.”
As Chevron appeals the Ecuadorian judgment on the ground that the ruling is fraudulent and contrary to scientific evidence, the benefits of arbitration become more clear. Fears of bias and favoritism are often eliminated in international arbitration.