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.
Chevron has accused Donziger of bribing the judge in Ecuador and ghostwriting the final verdict, an accusation he strenuously denies. However, in 2016 a US judge, Lewis Kaplan, found that Donziger was involved in racketeering activity and granted Chevron seizure of the lawyer’s laptop and phone.
The sprawling legal saga stems from a 2011 judgment in Ecuador where Chevron was ordered to pay $9.5bn in damages to people, represented by Donziger, blighted by decades of polluted air and water allegedly caused by the company’s oil drilling operations.
Seward & Kissel has represented many oil and gas companies throughout the years, including Chevron in 2018. Misdemeanor criminal contempt carries a maximum sentence of one year. If the penalty is more than six months for this type of charge, Mr. Kuby said, a defendant would get a trial by jury.
Steven Donziger, the environmental and human rights lawyer who won a $9.5 billion settlement against Chevron over oil dumped in Indigenous lands in the Amazon rainforest, surrendered himself to the federal authorities on Wednesday to begin a six-month prison sentence.
In 1993, Mr. Donziger sued the Chevron Corporation for oil spills that had a detrimental effect on the Amazonian region of Ecuador. Mr. Donziger has argued that Texaco, which was acquired by Chevron in 2001, cut through the Amazon, spilled oil into pristine rain forests and left behind a toxic mess.
On July 31, 2019, Judge Lewis A. Kaplan of the U.S. District Court in Manhattan, a former corporate lawyer, tried to charge Mr. Donziger with contempt of court based on his refusals in 2014 to give the court access to decades of client communications on devices like his phone and his computer. That year, Judge Kaplan supported Chevron’s complaint in a 500-page ruling finding that Mr. Donziger and his associates had engaged in a conspiracy and criminal conduct by ghostwriting an environmental report used as a crucial piece of evidence and bribing a judge in Ecuador.
After the U.S. attorney for the Southern District of New York declined to prosecute the case, Judge Kaplan took the rare step of appointing a private law firm, Seward & Kissel, to prosecute Mr. Donziger in the name of the U.S. government, Mr. Kuby said.
Steven Donziger, an environmental activist who won what is considered the largest ever lawsuit against an oil company, was found guilty of contempt of court in July.
In July, Judge Preska found Mr. Donziger guilty of all charges. On Oct. 1, Mr. Donziger was sentenced to six months in prison, a day after he asked the court to consider an opinion by independent United Nations experts that found his court-ordered home confinement of more than two years a violation of international human rights law.
Steven Donziger, a lawyer who won a multi-billion dollar judgment against Chevron on behalf of Ecuadorian villagers, has been found guilty of six contempt charges. Photograph: Brendan McDermid/Reuters
Steven Donziger, the lawyer who has spearheaded a lengthy fight against Chevron over pollution in the Amazon rainforest, has been found guilty of criminal contempt by a US federal judge in the latest twist in his decades-long legal battle with the oil company.
On Monday, US district judge Loretta Preska ruled that Donziger was guilty of six contempt charges brought against him for refusing to hand over evidence in a complex legal wrangle that has pitted the lawyer directly against Chevron.
Chevron has accused Donziger of bribing the judge in Ecuador and ghostwriting the final verdict, an accusation he strenuously denies. However, in 2016 a US judge, Lewis Kaplan, found that Donziger was involved in racketeering activity and granted Chevron seizure of the lawyer’s laptop and phone. When Donziger appealed against this, he was hit with the contempt charges and placed under house arrest.