Friday, January 6, 2012

Reversal of Fortune


One day last February, a judge in Lago Agrio, presiding over a spare, concrete courtroom in a shopping mall on the edge of town, issued an opinion that reverberated far beyond the Amazon. Since 1993, a group of Ecuadorans had been pursuing an apparently fruitless legal struggle to hold Texaco responsible for environmental destruction in the Oriente. During the decades when Texaco operated there, the lawsuit maintained, it dumped eighteen billion gallons of toxic waste. When the company ceased operations in Ecuador, in 1992, it allegedly left behind hundreds of open pits full of malignant black sludge. The harm done by Texaco, the plaintiffs contended, could be measured in cancer deaths, miscarriages, birth defects, dead livestock, sick fish, and the near-extinction of several tribes; Texaco’s legacy in the region amounted to a “rain-forest Chernobyl.”

By the time the judge, Nicolás Zambrano, issued his decision, the case had been going on for eighteen years. It had outlasted jurists on two continents. Zambrano was the sixth judge to preside in Ecuador; one federal judge in New York had died before he could rule on the case. The litigation even outlasted Texaco: in 2001, the company was subsumed by Chevron, which inherited the lawsuit. The dispute is now considered one of the nastiest legal contests in memory, a spectacle almost as ugly as the pollution that prompted it.

Chevron, which operates in more than a hundred countries, is America’s third-largest corporation. Its annual revenue, which often tops two hundred billion dollars, is nearly four times as much as Ecuador’s economic output. The plaintiffs, who named themselves the afectados—the affected ones—included indigenous people and uneducated settlers in the Oriente; some of them initially signed documents in the case with a fingerprint. They were represented by a fractious coalition of American and Ecuadoran lawyers, most of whom were working for contingency fees. An environmental lawsuit against a major corporation can resemble a war of attrition, and in 1993 few observers would have predicted that the plaintiffs could endure as long as they did. But, on February 14, 2011, their persistence was rewarded. Judge Zambrano ruled that Chevron was responsible for vast contamination, and ordered it to pay eighteen billion dollars in damages—the largest judgment ever awarded in an environmental lawsuit.

by Patrick Radden Keefe, New Yorker |  Read more:
Photograph by Remi Benali.