US court rules for Chevron in Ecuador rainforest-damage case [View all]

[Zorro]

Ecuadorean plaintiffs cannot collect a $9 billion judgment in the U.S. against Chevron for rainforest damage, a federal appeals court ruled Monday, upholding a judge's finding that the judgment was obtained through bribery, coercion and fraud.

The 2nd U.S. Circuit Court of Appeals in New York said U.S. District Judge Lewis A. Kaplan had the authority after a trial to rule in March 2014 as he did. It noted, however, that Kaplan's decision doesn't invalidate the Ecuadorian judgment and doesn't stop the enforcement of the judgment outside the U.S.

In a decision written by Circuit Judge Amalya Kearse, a three-judge panel rejected the argument by the Ecuadorean plaintiffs that they were not aware of wrongdoing by lawyers in the case and should not be held responsible.

"There is no authority suggesting that a party ignorant of its attorney's fraudulent actions may enforce a fraudulently procured judgment," the panel said. "Even innocent clients may not benefit from the fraud of their attorney."

https://www.yahoo.com/news/us-court-rules-chevron-ecuador-161658312.html