re: Ecuador Refuses to pay Chevron Nearly $100 Million in Damages
The government insists that the oil-giant should pay Ecuador reparations for thousands of oil spills in Amazon Rainforest.
Ecuador's government Friday rejected a U.S. Supreme Court ruling ordering the country to pay oil-giant Chevron a $96 million judgement for breach of contract.
At issue is a 1973 pact in which Chevron agreed to develop Ecuador's oil fields in the Amazonian rainforest, in exchange for supplying the country's consumers with refined oil at below-market rates. Ecuador, however, accused Chevron of knowingly causing irreparable environmental harm to the country with thousands of oil spills, and terminated their contract in 1992.
Also last month, the US Supreme Court rejected Chevron's argument that Ecuadorian villagers who won a $11 billion class action suit against the company were effectively a criminal racket in seeking damages for the massive environmental damage to the rainforest.