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Case of the Day: Republic of Ecuador v. Chevron Corp.

The case of the day is Republic of Ecuador v. Chevron Corp. (Hoge Raad 2014). The Dutch Supreme Court affirmed the BIT arbitral award against Ecuador, which arose out of Chevron’s claim that it had suffered damages on account of undue delay in the settlement of lawsuits TexPet (of which Chevron was a shareholder) had brought against Ecuador in the early 1990s. I haven’t seen a real English translation of the decision, but the main point seems to be that it was for the arbitrators to determine the scope of the term “investment” as used in the treaty, which according to the court was exceptionally broad. While this arbitration doesn’t directly relate to the Lago Agrio litigation, the gist of the decision is no doubt welcome news to Chevron.
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