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Chevron Corp. v. Donziger

ELR Citation: 41 ELR 20108
Nos. No. 11 Civ. 0691 (LAK), (S.D.N.Y., 03/07/2011)

A district court issued a preliminary injunction enjoining plaintiffs from enforcing a multibillion dollar judgment awarded by an Ecuadorian court against an oil company for environmental pollution in the Amazon. The evidence establishes that the plaintiffs and their allies intend quickly to pursue multiple enforcement actions and asset seizures around the globe. Absent a preliminary injunction, the oil company would be forced to defend itself and litigate the enforceability of the Ecuadorian judgment in multiple proceedings. Accordingly, it demonstrated immediate and irreparable injury. Similarly, the balance of hardships tips in the company's favor as well. In addition, the company is sufficiently likely to prevail on its claim for a declaration that the Ecuadorian judgment is not entitled to recognition or enforcement and that efforts in that direction should be enjoined. The company raised substantial questions that present a fair ground for litigation as to whether the Ecuadorian judgment is a result of fraud practiced on the Ecuadorian tribunal.