Update on the Patton Boggs Case
Posted on March 23, 2012
Chevron has also sought to get Judge Kaplan involved in the case by moving for exoneration of the bond. The basic argument is that the purpose of the bond was to protect the plaintiffs from damages suffered on account of a delay in enforcement of the Ecuadoran judgment, but the plaintiffs acknowledged that the Ecuadoran judgment was unenforceable until the Ecuadoran appellate court ruled on Chevron’s appeal, the plaintiffs stipulated that they would not seek to enforce the judgment until that time, and in any event in the months since the Ecuadoran courts ruled, the plaintiffs still have not sought to enforce the judgment. Thus there are no damages, and the bond no longer serves a purpose and should be exonerated.
Patton Boggs has not yet responded on the merits in Judge Kaplan’s court, but in the New Jersey action, it seeks an injunction enjoining Chevron from seeking exoneration in New York. It points out that Chevron did not really wait for the New Jersey judge to decide whether to transfer the case, but improperly help[ed] itself to its forum of choice. Chevron has effectively told this Court that it will adjudicated Patton Boggs’s right to the bond where Chevron wants to litigate this issue, whether this Court agrees or not.” Zing! Patton Boggs also pointed to the “first filed” rule in support of its position.
For a party that spent a long time trying to avoid the courts in New York, Chevron (yes, I know, Chevron is not the same entity as Texaco) is making a big effort these days to spend as much time in the New York courts as possible!
Photo credit: Jack E. Boucher