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Arbitral Tribunal Renders Partial Award in the Proceeding Filed by Chevron Against the Ecuadorian State
Date:9/19/2013

Quito (PRWEB) September 19, 2013

On Tuesday September 17, 2013, the Arbitration Tribunal hearing the matter brought by Chevron Corporation and Texaco Petroleum Company against the Ecuadorian State issued a partial award in which it decided certain issues related to Chevron-Texaco’s claim that the Republic allegedly breached the Settlement Agreement signed in 1995, in relation with third-party environmental claims against Chevron.

In its decision, the Tribunal –constituted under the UNCITRAL Rules– agreed with the Ecuadorian legal defense in finding that the aforementioned Settlement Agreement did not preclude the Lago Agrio plaintiffs from asserting claims “in respect of their own individual rights”. According to the Tribunal, the Agreement refers to claims that Ecuador might raise in the exercise of their own rights and not to claims by third parties acting independently from the state in the exercise of their individual rights.

The Tribunal, however, found that the 1995 Settlement Agreement barred third parties from asserting “diffuse” or “collective” claims, as these would have been the subject of the release conferred by the Government at the time.
In this regard, the Tribunal expressly declined to address at this time the question whether the claim of the Lago Agrio plaintiffs sought the vindication of their individual rights or diffuse rights, or both.

Although the Tribunal concluded that Chevron is a "releasee" under the Agreement referred above, it rejected oil company’s argument that the Agreement contained an implicit "hold harmless&q
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