Lago Agrio: Supreme Court Denies Cert. In Chevron-Ecuador Arbitration

Hillary Clinton
Competence. Competence. Credit: Marc Nozell

On Monday, the Supreme Court denied Ecuador’s petition for a writ of certiorari in the BIT arbitration brought by Chevron arising out of undue delay in the settlement of lawsuits TexPet (of which Chevron was a shareholder) had brought against Ecuador in the early 1990s.

As the US and Dutch Supreme Courts have now ruled, it seems to me that barring something extraordinary, the case is now over as a matter of Ecuador’s obligations under the BIT. There may still be an issue about Ecuadoran law, namely whether Ecuadoran law permits payment of the award and whether, under Ecuadoran law, the award must be paid to Chevron or else to the Lago Agrio plaintiffs. I will try to report on additional developments.

About Ted Folkman

Ted Folkman is a shareholder with Murphy & King, a Boston law firm, where he has a complex business litigation practice. He is the author of International Judicial Assistance (MCLE 2d ed. 2016), a nuts-and-bolts guide to international judicial assistance issues, and of the chapter on service of process in the ABA's forthcoming treatise on International Aspects of US Litigation, and he is the publisher of Letters Blogatory, the Web's first blog devoted to international judicial assistance, which the ABA recognized as one of the best 100 legal blogs in 2012, 2014, and 2015.

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