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Chevron loses latest stage of Amazon pollution battle


New York appeals judge unfreezes $18bn damages award over contamination of indigenous tribe's land in Ecuador.

A US court has dealt oil giant Chevron a severe blow after lifting a ban on an $18bn judgment against the firm for contaminating the Amazon.

A New York appeals court has reversed an earlier order freezing enforcement of the record damages award. It is the latest reversal in a nearly two decade-long legal battle over pollution in the Amazon rainforest in Ecuador.

In February, a judge in Ecuador ordered Chevron to pay damages to the plaintiffs, but both Chevron and the residents appealed, and the case has yet to make its way to Ecuador's highest court.

In anticipation of the judgment, however, Chevron had filed court papers asking district judge Lewis Kaplan to freeze any possible enforcement of payment anywhere outside Ecuador. Kaplan, who presides over a chunk of the litigation in Manhattan federal court, issued the now-reversed preliminary injunction in March.

Karen Hinton, spokeswoman for the plaintiffs, said the appeals court order meant it had recognised that Kaplan had acted too fast in issuing an injunction. "Chevron abused the law, and Judge Kaplan rushed to judgment without considering the overwhelming evidence against the oil giant," she said in a statement.

"We can now at least dream there will be justice and compensation for the damage, the environmental crime, committed by Chevron in Ecuador," lead lawyer for the plaintiffs, Pablo Fajardo, told the Associated Press.MORE