NEW YORK (Reuters) - A divided U.S. appeals court on Wednesday upheld the criminal contempt conviction of a disbarred lawyer who won but was unable to collect a $9.5 billion judgment against Chevron Corp for polluting the Ecuadorian rainforest.
In another legal peculiarity, in July, Kaplan appointed a private law firm to prosecute Donziger, after the Southern District of New York declined to do so — a move that is virtually unprecedented. And, as Donziger’s lawyer has pointed out, the firm Kaplan chose, Seward & Kissel, likely has ties to Chevron.
Chevron became the defendant when it acquired Texaco in 2001. Chevron contended that Donziger fabricated facts and argued that Ecuador's state-run oil company, Petroecuador, was primarily responsible for the damage and that it was released from liability after a $40 million cleanup.
In 2011, Donziger won an $18 billion settlement against Chevron on behalf of 30,000 Indigenous people in Ecuador for dumping 16 billion gallons of oil into their ancestral land in the Amazon.
Donziger was charged with contempt of court for refusing to hand over his computer, cellphone, and other electronic devices in August of 2019. He had already endured 19 days of depositions and given Chevron large portions of his case file.
In 2011, Chevron filed a civil RICO (Racketeer Influenced and Corrupt Organizations Act) suit against Donziger in New York City, accusing him of bribing an Ecuadorean judge, ghostwriting the damages judgment against it, and "fixing" scientific studies.
Donziger, who was disbarred in New York last year, was found guilty of criminal contempt in July including for failing to turn over his computer and other electronic devices in connection with his long-running legal battle with Chevron Corp over oil pollution in Ecuador.
Donziger was found responsible for forging evidence and engaging in corrupt practices to win a lawsuit against the well-known oil company Chevron. Evidence showed that the lawyer engaged in bribery to get the Ecuadorian courts to render a verdict in his favor.
In 2011, an Ecuadorian judge ordered Chevron to pay $18.2 billion for "extensively polluting" the Lago Agrio region in the Ecuadorian Amazon. Ecuador's highest court upheld the verdict a year later. However, it reduced the amount of compensation to $9.5 billion. Chevron never complied with the ruling.
Donziger was found guilty in July of six counts of criminal contempt of court for withholding evidence in a long, complex legal fight with Chevron, which claims that Mr. Donziger fabricated evidence in the 1990s to win a lawsuit he filed against the oil giant on behalf of 30,000 Indigenous people in Ecuador.
Instead, that case was decided solely by Kaplan, who ruled in 2014 that the Ecuadorian judgment against Chevron was invalid because it was obtained through “ egregious fraud ” and that Donziger was guilty of racketeering, extortion, wire fraud, money laundering, obstruction of justice, and witness tampering.
The Chevron case may be most devastating for the plaintiffs in the Amazon, who never received their judgment despite being left with hundreds of unlined waste pits and contaminated water and soil from millions of gallons of spilled crude oil and billions of gallons of dumped toxic waste.
So on August 6, Donziger left a Lower Manhattan courthouse unnoticed and boarded the 1 train home with an electronic monitoring device newly affixed to his ankle. Save for the occasional meeting with his lawyer or other court-sanctioned appointment, he has remained there ever since.
The company sued him in New York, and now he’s under house arrest. Steven Donziger sits for a portrait at his home in Manhattan, N.Y., where he is on house arrest. Photo: Annie Tritt for The Intercept.
The twisted legal saga began in 1993, when Donziger and other attorneys filed a class-action suit in New York against Texaco on behalf of more than 30,000 farmers and Indigenous people in the Amazon over massive contamination from the company’s oil drilling there.
Still, Donziger said he’d turn over the devices if he lost the appeal.
Chevron, which has a market capitalization of $228 billion, has the funds to continue targeting Donziger for as long as it chooses . In an emailed statement, Chevron wrote that “any jurisdiction that observes the rule of law should find the fraudulent Ecuadorian judgment to be illegitimate and unenforceable.”.