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Chevron settlement agreement with Patton Boggs

Hydrocarbon Engineering,

Chevron Corporation has announced that it has reached a settlement agreement with Patton Boggs LLP, a lobbying and law firm headquartered in Washington, D.C.

Chevron had filed counterclaims in federal court against Patton Boggs for its role in a lawsuit against the company in Ecuador. On 4 March 2014, Judge Lewis Kaplan of the US District Court for the Southern District of New York riled that the US$ 9.5 million judgement against Chevron in Ecuador was the product of fraud and racketeering activity, finding it unenforceable in the US and holding the Donziger liable for racketeer influenced and corrupt organizations act (RICO) violations.

Patton Boggs began working with Donziger and the Lago Agrio Plaintiffs in early 2010 in exchange for a stake in the Ecuadorian judgement. Patton Boggs also filed three separate lawsuits against Chevron on its own behalf. All claims were rejected by US federal courts and on 31 March 2014 Judge Kaplan granted Chevron’s application to pursue counterclaims against the firm.

The recent settlement resolves these claims. Patton Boggs has agreed to withdraw from the fraudulent Ecuador litigation, issuing a statement of regret, assigning its interests in the litigation to Chevron, and making a payment to Chevron of US$ 15 million. In return, Chevron has agreed to release all claims against Patton Boggs and its partners. 

Adapted from a press release by Emma McAleavey.

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