NYC judge rejects Ecuador’s attempt to stop Chevron arbitration bid in environmental lawsuit

NYC judge allows Chevron arbitration to proceed

NEW YORK — A federal judge in New York City has ruled Chevron can proceed in arbitration with claims it was not treated fairly in Ecuadorean courts in a dispute over whether it should be held liable for contamination of rain forests in Ecuador.

On Thursday, Judge Leonard Sand rejected the arguments of a lawyer for the government of Ecuador, which wanted him to block arbitration.

The lawyer, C. MacNeil Mitchell, said after the decision that he was disappointed but did not yet know if he would appeal. He had argued that Texaco, Chevron’s predecessor in Ecuador, had agreed in writing to submit to the court system in Ecuador.

Chevron lawyer Randy Mastro says Chevron wanted to ensure a fair and impartial court proceeding.