🍎 🍕 Less apples, more pizza 🤔 Have you seen Buffett’s portfolio recently?Explore for Free

U.S. Supreme Court lets Chevron foe Donziger's contempt conviction stand

Published 03/27/2023, 10:12 AM
Updated 03/27/2023, 04:44 PM
© Reuters. FILE PHOTO: The Chevron logo is pictured after the U.S. government granted a six-month license allowing Chevron to boost oil output in U.S.-sanctioned Venezuela, in Caracas, Venezuela, December 2, 2022. REUTERS/Gaby Oraa/File Photo
CVX
-

By Nate Raymond

(Reuters) -The U.S. Supreme Court on Monday declined to hear a disbarred environmental lawyer's challenge to his criminal contempt conviction after he earlier won but was unable to collect a $9.5 billion judgment against Chevron Corp (NYSE:CVX) over oil pollution in Ecuadorian rainforests.

The court turned away an appeal by Steven Donziger, who has argued that his prosecution violated his rights under the U.S. Constitution because private lawyers appointed by a federal judge handled the case against him after the U.S. Justice Department declined to do so.

Donziger's lawyers argued that this appointment violated separation-of-powers principles set out in the Constitution delineating the authority of the three branches of the U.S. government. They maintained that the executive branch, not the judiciary, should have pursued any prosecution.

The New York-based 2nd U.S. Circuit Court of Appeals last year concluded that U.S. District Judge Lewis Kaplan possessed the authority to appoint the prosecutors, who nonetheless remained subject to supervision by the U.S. attorney general.

Two members of the Supreme Court's 6-3 conservative majority, Justices Neil Gorsuch and Brett Kavanaugh, dissented from the decision to not hear the appeal, with Gorsuch saying that the Constitution "does not tolerate what happened here."

"However much the district court may have thought Mr. Donziger warranted punishment, the prosecution in this case broke a basic constitutional promise essential to our liberty," Gorsuch wrote.

Donziger on Twitter called the Supreme Court's decision to not hear his case "a huge blow to the rule of law." Steve Vladeck, a University of Texas School of Law professor who represented Donziger, said Gorsuch's dissent "says just about everything I'd say."

Donziger was sentenced to six months in jail in 2021 after U.S. District Judge Loretta Preska in Manhattan found him guilty of misdemeanor contempt for defying court orders arising from a lawsuit filed by Chevron.

The Harvard Law School graduate had represented villagers in Ecuador's Lago Agrio region who sued Chevron for water and soil contamination caused by Texaco between 1964 and 1992. Chevron acquired Texaco in 2001.

While not disputing that pollution had occurred, Chevron said the company was released from any liability because it paid $40 million for an environmental clean-up in the 1990s and that Ecuador's state oil company, Petroecuador, was primarily to blame for the pollution.

In 2011, an Ecuadorian court entered an $18 billion judgment that was later reduced to $9.5 billion against Chevron for contamination resulting from oil production.

Chevron then sued Donziger and others in New York, arguing that he and his associates had secured the judgment through fraud by arranging the ghostwriting of a key environmental report and bribing the presiding judge.

In 2014, Kaplan concluded in that case that the Ecuadorian judgment against Chevron in Ecuador was obtained fraudulently through a corrupt process, rendering it unenforceable in the United States.

Theodore Boutrous, a lawyer for Chevron, on Monday noted that an appeals court later upheld Kaplan, finding that Donziger engaged in a "parade of corrupt actions" that included coercion, fraud and bribery.

© Reuters. FILE PHOTO: Attorney Steven Donziger, who won a multi-billion dollar judgment against Chevron on behalf of Ecuadorian villagers, speaks to supporters with Singer Roger Waters and actor Susan Sarandon, as he arrives for his criminal contempt trail at the Manhattan Federal Courthouse in the Manhattan borough of New York City, New York, U.S., May 10, 2021.  REUTERS/Brendan McDermid/File Photo

When Chevron suspected Donziger was violating a related ban on trying to monetize or profit from the judgment, Kaplan ordered him to turn over electronic devices and email accounts for examination.

Donziger refused, and Kaplan ultimately charged him with criminal contempt. After federal prosecutors in Manhattan declined to take the case, Kaplan in an unusual move tapped a private lawyer, Rita Glavin, to lead the prosecution of Donziger.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.