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ARTICLE · 03 JUNE 2013

Not On The Rink In My Backyard

Bennett Jones LLP
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Bennett Jones LLP

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The analysis of the case for enforcement against Chevron Canada will be of interest to multinationals with business in Canada in terms of considering whether they would be able to demonstrate the requisite separation of assets and operations.

CanadaCorporate/Commercial Law

It is well-known that for 20 years Chevron Corp. has been engaged in litigation with residents of the Lago Agrio region of Ecuador over alleged environmental and health damage arising out of oil exploration activities by Chevron's predecessor, Texaco.  The dispute has played out in numerous installments both in the federal courts of the United States and in the courts of Ecuador and has involved issues of jurisdiction, forum conveniens, validity of a settlement agreement under investment treaty law and allegations of fraud.  Ultimately, in 2011, the plaintiffs obtained an Ecuadorian trial judgment for approximately $18 billion, later upheld on appeal.1 On May 30, 2012, the plaintiff brought the party to Canada.

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