Chevron Corp. Statement on Canadian Jurisdictional Decision in Ecuador Enforcement Proceeding

  Chevron Corp. Statement on Canadian Jurisdictional Decision in Ecuador
  Enforcement Proceeding

Business Wire

SAN RAMON, Calif. -- May 1, 2013

The Ontario Superior Court of Justice has stayed (see opinion here) an action
initiated by a group of Ecuadorian plaintiffs seeking to have a judgment of an
Ecuadorian court against Chevron Corp. [NYSE: CVX] recognized and enforced in
Ontario. In doing so, the court stated:

“the plaintiffs have no hope of success in their assertion that the corporate
veil of Chevron Canada should be pierced and ignored so that its assets become
exigible to satisfy a judgment against its ultimate parent. There is no basis
in law or fact for such a claim.… Ontario courts should be reluctant to
dedicate their resources to disputes where, in dollar and cents terms, there
is nothing to fight over. In my view, the parties should take their fight
elsewhere to some jurisdiction where any ultimate recognition of the
Ecuadorean judgment will have a practical effect.”

In response, Chevron Corporation issued the following statement:

“We are pleased with today’s decision from Justice Brown.The Ontario Superior
Court ruled that it ought not to entertain the plaintiffs’ claims on the
evidence before the court. This is a significant setback to the Ecuadorian
plaintiffs’ worldwide enforcement strategy given that it is premised on
seeking to enforce the judgment against assets of Chevron Corporation
subsidiaries that were not even parties to the Ecuadorian litigation.”

“The plaintiffs should be seeking enforcement in the United States – where
Chevron Corporation resides. In the U.S., however, they would be confronted by
the fact that eight federal courts have already found the Ecuador trial
tainted by fraud.”

Meanwhile, Chevron Corp. has made additional notable progress in the legal
proceedings in the United States exposing the fraudulent nature of the
plaintiffs’ judgment. This evidence further demonstrates that the judgment is
illegitimate and should be unenforceable in any court that respects the rule
of law. Evidence of the plaintiffs’ fraud includes:

  *A former Ecuadorian judge has admitted his role in orchestrating the
    fraudulent judgment against Chevron and a half-million-dollar bribery
    scheme.
  *Stratus Consulting, the lead environmental consultants to the Ecuadorian
    plaintiffs’ lawyers, provided sworn declarations (here and here),
    highlighting the lack of scientific merit to the plaintiffs’ damage
    claims.
  *Another of the plaintiffs’ lawyers’ environmental consultants, Dr. Charles
    Calmbacher, has testified that plaintiffs’ evidence was being falsified
    from the very outset of the trial.
  *Litigation hedge fund Burford Capital has provided a sworn declaration
    outlining the firm’s knowledge of the plaintiffs’ lawyers’ misconduct,
    testifying that the proceeding is irredeemably tainted by fraud.

Chevron Corp. remains committed to holding the plaintiffs’ lawyers accountable
for their misconduct and demonstrating the judgment is the product of a
corrupted judiciary.

Note to Editors:

Chevron Corp. is defending itself against false allegations that it is
responsible for alleged environmental and social harms in the Oriente region
of Ecuador. Chevron never conducted oil production operations in Ecuador, and
its subsidiary Texaco Petroleum Co. (“TexPet”) fully remediated its share of
environmental impacts arising from oil production operations, before leaving
Ecuador in 1992. After the remediation was certified by all agencies of the
Ecuadorian government responsible for oversight, TexPet received a complete
release from Ecuador's national, provincial, and municipal governments that
extinguished all claims before Chevron acquired TexPet in 2001. All legitimate
scientific evidence exonerates Chevron and proves that the remediated sites
pose no significant risks to human health or the environment.

More information on the plaintiffs’ lawyers’ fraud can be found here.
Additional background on the Ecuador litigation can be accessed here and here.

Chevron is one of the world’s leading integrated energy companies, with
subsidiaries that conduct business worldwide. The company is involved in
virtually every facet of the energy industry. Chevron explores for, produces
and transports crude oil and natural gas; refines, markets and distributes
transportation fuels and lubricants; manufactures and sells petrochemical
products; generates power and produces geothermal energy; provides energy
efficiency solutions; and develops the energy resources of the future,
including biofuels. Chevron is based in San Ramon, Calif. More information
about Chevron is available at www.chevron.com.

Contact:

Chevron
Justin Higgs, 925-842-6175
 
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