Lago Agrio September 2022

If the State Attorney General’s Office does not appeal before the Supreme Court of the Netherlands, a decision made by the Appeal Court would impose Ecuador a millionaire penalty in favor of the oil company Chevron-Texaco. The judgment issued by the Dutch court  in favor of the multinational corporation violates the Ecuadorian Constitution, the country’s trust in law, and the human and environmental rights that should be guaranteed by the Government to Ecuadorians. 

The judgment was issued on June 28th 2022 by the Dutch Court of Appeals and must be appealed by Ecuador until September 28th of the current year. However, more than 60 days have passed since the ruling, and the State Attorney General’s Office, allegedly called to defend the country’s interests, has not shown any signs of determinacy in promoting Ecuador’s interests. Consequently, this would oblige Ecuador to pay an as yet undetermined amount to the oil company. 

This Dutch Court of Appeals’ decision responds to the international arbitration filed in 2009 against the country, violating national and international norms which establish that, as a matter of principle, no legal rule can be applied retroactively. This case, indeed, is based on a Bilateral Investment Treaty signed between Ecuador and the United States which entered into force in 1997, when Chevron had no more investments in the country. This claim was used to forcibly involve the State in a private litigation, that was won by the indigenous communities after providing evidence of human rights violations caused by Chevron.

The arbitration award requests the State, among other things: to nullify the Ecuadorian judgment against Chevron; to prevent the judgment enforcement; and to pay Chevron the legal fees for the 25 years of litigation, plus the alleged damage caused to the company. This arbitration award violates international norms establishing that no Court in the world can interfere with a final judgment issued by internal judicial bodies of a certain country. This arbitration drives the Ecuadorian State into committing several violations its own Constitution, since the legislative and executive powers are not allowed to interfere in the National Justice System. Finally, it violates the rights of the plaintiffs and all the citizens of Ecuador, who would be affected by having to directly compensate the oil company, despite the serious damages caused to the country and its population. 

The Aguinda vs. Chevron lawsuit lasted for more than 20 years in Ecuador, due to the constant delays tactics deployed by the oil giant, while trying to prevent it from proceeding. However, and due to the existing, visible and undeniable, evidence, in addition to the fact that Chevron could not prove the existence of fraud or denial of the right to legitimate defense, the affected parties won the trial in every national judicial instance, according to Ecuadorian law: the first level judge’s decision, the appeal at the Provincial Court of Justice of Nueva Loja, and extraordinary request for review to the National Court. Finally, as a result of a extraordinary constitutional claim filed by Chevron claiming that their constitutional rights were violated, the Constitutional Court established that the rulings are lawful under the Constitution and that Chevron had the adequate guarantees of due process. Therefore, it dismissed the lawsuit, making the Ecuadorian judgment against Chevron legally enforceable anywhere in the world. 

This lack of action by the Ecuadorian Government could be explained by the government’s policy of favoring investment over human rights. Pablo Fajardo, lawyer for the plaintiffs in the Aguinda lawsuit, has been clear in emphasizing that in the absence of legal defense, it would be self-evident that the government is favoring economic and commercial rights that protect multinational corporations, while becoming complicit in corporate crimes to the detriment of its own citizens. 

Justino Piaguaje, leader of the Siekopaai indigenous nation, one of the most affected by Chevron, considers that failing to file an appeal to the ruling to the Dutch Court would mean an act of injustice and betrayal. Failure to appeal would make the State complicit of corporate crimes against its own population, at the same time when Ecuador is also opening up to mining activity at the national level, which is not a good sign for communities. «We, the Ecuadorian people, will be the ones who will pay with our lives for the wealth of multinationals», Piaguaje said.

The Coordinator of the Union of People Affected by Chevron-Texaco(UDAPT), Donald Moncayo, warned about the threat posed against Ecuadorian citizens by the Ecuadorian Government by failing to appeal the ruling and disregarding its technical defense. He also announced that since UDAPT it is not part of the international arbitration will continue to carry out enforcement intents, within the framework of the law, to force Chevron to take responsibility for its past crimes.

Contacts

Donald Moncayo +593 99 397 7808
Pablo Fajardo +593 99 397 7811

Juan Carlos Apolo +593 959 244 340

Letty Fajardo +31 6 40940545