Chevron suing Ecuador's government under international trade law

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Looking to Protect Itself in Longtime Battle, Oil Giant Seeks Aid Through Trade Pact

Chevron Corp. is stepping up its offensive in its long-running legal battle in Ecuador, suing Ecuador's government under international trade law.

Chevron is the defendant in a multibillion-dollar lawsuit that seeks to hold the company responsible for environmental damage allegedly caused by Texaco Inc., which Chevron bought in 2001. Chevron has denied the allegations.

Seeking to protect itself from what it says is likely to be an adverse ruling in Ecuador, the California-based oil giant said Wednesday it had filed suit under the terms of a 1997 trade pact between the U.S. and Ecuador. The suit amounts to a request for arbitration through a process set up by the United Nations Commission on International Trade Law to adjudicate disagreements.

The arbitration process is separate from the original lawsuit, which will continue. But under its pact with the U.S., Ecuador must accept the arbitrators' rulings as binding under international law.

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Chevron Files Suit Against Ecuador - WSJ.com

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Ecuadorean community leader Luis Yanza protests following a Chevron shareholders' meeting at the company's headquarters in San Ramon, Calif., last year. A lawsuit accuses Chevron of environmental damage in Ecuador.