Caso Chevron

Ecuador fraud criticized by Brazil, movie next

Latinvex 21/05/2015

Last week, Brazil’s Federal Prosecutor’s Office issued a recommendation to the country’s Superior Court of Justice that the $9.5 billion fraudulent Ecuadorian judgment against Chevron Corporation not be recognized for enforcement.

In an opinion requested by Brazil’s Superior Court of Justice, Deputy Prosecutor General Nicolao Dino found that the Ecuadorian judgment against Chevron was “issued irregularly, especially under uncontested acts of corruption” and that recognizing it would violate Brazilian and “international public order.” Under international and Brazilian law, foreign judgments that violate public order, including the right to due process, may not be recognized in Brazil.

In the 16-page recommendation, Dino quotes extensively from U.S. District Court’s March 4, 2014 opinion, which found that the $9.5 billion judgment against Chevron Corporation in Ecuador was the product of fraud and racketeering activity. He also cites the Organization of American Sates’ Inter-American Convention on Corruption, of which the country is a signatory, adding that recognition of the Ecuadorian judgment would likewise contravene “international public order” and “good morals.”

The non-binding recommendation cannot be appealed. With this information in hand, Brazil’s Superior Court of Justice will now take up the Ecuadorian plaintiffs’ petition to have the judgment recognized.

“Brazil’s Deputy Prosecutor General’s recommendation that the fraudulent Ecuadorian judgment against Chevron not be recognized for enforcement upholds international and Brazilian law,” Chevron spokesman James Craig says. “This recommendation is consistent with the U.S. federal court ruling that found the Ecuadorian judgment to be the product of fraud, bribery and extortion, and not enforceable in the United States. We are confident that other jurisdictions that observe the rule of law will similarly find the Ecuadorian judgment to be illegitimate and unenforceable.”

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