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OpEdNews Op Eds    H1'ed 8/25/20

How Corporate Tyranny Works

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"The verdict came down, about $18 billion in favor of the affected communities, which is what it would take at a minimum to clean up the actual damage and compensate the people for some of their injuries. That eventually got reduced on appeal in Ecuador to $9.5 billion, but it was affirmed by three appellate courts, including the highest court of Ecuador. It was affirmed by the Canadian Supreme Court, where the Ecuadorians went to enforce their judgment in a unanimous opinion in 2015."

Chevron, as the evidence mounted against it, sold their assets in Ecuador and left the country. The corporation threatened the plaintiffs with a "lifetime of litigation" if they attempted to collect, and, according to internal Chevron memos, launched a legal and media campaign that has cost an estimated $2 billion to prevent payment of the settlement and to demonize and destroy Donziger.

Donziger came to his epic battle against Chevron through journalism. "I was a journalist on my college newspaper," he said of his time as a history major at American University. "My first job out of college was as a journalist with [United Press International]. I worked for UPI in Washington. They were strong in Latin America. I traveled to Managua in 1983 or 1984, I don't remember exactly, and found work in the UPI bureau. I was 23 years old. I worked in the UPI bureau in Managua during the Sandinista era."

He left UPI after a year in Managua but stayed on in Nicaragua to work as a freelance journalist for newspapers such as The Fort Lauderdale News, The Toronto Star and The Atlanta Constitution. He spent about three years as a reporter before going to Harvard Law School. When he graduated from Harvard Law School in 1991, he worked as a public defender in Washington, D.C. He documented Iraqi civilian casualties in Iraq following the first Gulf War that became a report adopted by the United Nations.

A classmate at law school was from Ecuador. His classmate's father organized a trip in April 1993 for lawyers and medical professionals to look at the contamination caused by the oil extraction in the Amazon. That trip, which Donziger joined, spawned the suit against Texaco. He would make more than 250 trips to Ecuador over the next two decades.

"Journalism significantly shaped my views and skill set," he said. "It was vital to allowing my work to be successful. From the beginning this was a unique litigation, for many reasons, but one of the reasons was we, as a team, decided to work across multiple platforms. If we only saw this case as a lawsuit we would never win.

"Chevron controlled the legal system in Ecuador with their influence. We needed to operate across different platforms, including engaging with the media and carrying out significant public education. Most Ecuadorians, other than those who lived in the region, knew nothing about the pollution that had been happening in their country. We carried out zealous advocacy in the public arena. We realized that the indigenous people would never get a fair trial in Ecuador if they did not illuminate what had happened to them and get public support."

"The fact that I am detained shows how far we've come and how much risk Chevron feels. It's not a sign we lost. It's the opposite."

Steven Donziger

Both the judge who oversaw its lawsuit against Donziger for "racketeering" and Chevron itself "claim that this type of activity is wrong," he said. "The irony is that what we were doing is what the big oil companies have always done. They always operate in the public relations domain, lobbying Congress to pass legislation to extinguish various legal claims, meeting political leaders behind the scenes. They operate across every platform they can find to exercise their power. We were smart enough to meet them toe-to-toe wherever they were operating and neutralize their ability to undermine the fairness of the trial. That's how they operate. They try to control court systems.

"My journalism [experience] sensitized me to injustice. It allowed me to understand the media. I knew how to write press releases, which matters when you do a public case like this. I knew how to work across different platforms to mobilize positive energy around the case. Human rights work involves, first and foremost, justice for victims. But equally important is accountability for the perpetrators. The fact that I am detained shows how far we've come and how much risk Chevron feels. It's not a sign we lost. It's the opposite."

Chevron, which had left Ecuador, went back to the New York court, where Donziger had originally filed the lawsuit before Chevron got a change of venue to Ecuador, and sued him, using a civil courts portion of the federal law famous for breaking the New York Mafia in the 1970s, the Racketeer Influenced and Corrupt Organizations Act.

In effect, "They sued me as a civil racketeer, under a civil RICO statute for $60 billion," he said. "That was the largest amount of money an American individual ever had been sued for. This began a 10-year campaign to demonize me by Chevron and by its judicial allies."

Chevron, which has more than $260 billion in assets, has hired an estimated 2,000 lawyers from 60 law firms to carry out its campaign, according to court documents. The oil giant dropped its demand for financial damages weeks before the RICO trial, which would have necessitated a jury trial. Judge Lewis A. Kaplan, a former lawyer for the tobacco industry who had undisclosed investments in funds with Chevron holdings, according to his public financial disclosure statement, decided the RICO case alone. He found credible a witness named Alberto Guerra, relocated to the US by Chevron at a cost of some $2 million, who claimed the verdict in Ecuador was the product of a bribe. Kaplan used Guerra's testimony as primary evidence for the racketeering charge, although Guerra, a former judge, later admitted to an international tribunal that he had falsified his testimony.

"[Kaplan] wouldn't allow me to bring in any environmental evidence that the Ecuadorian courts had used to find Chevron liable," Donziger said. "He wouldn't let me testify on my own behalf on direct. He allowed Chevron to use secret witnesses whose identities he wouldn't reveal to me. He tried to treat it like a national-security kind of case to try to demonize me. Because Chevron's whole strategy is to demonize [me] as a way to distract attention from its environmental crimes in Ecuador. And Judge Kaplan, who knows all the tricks in the books because he used to work for [tobacco company] Brown & Williamson, when he was [an attorney with the law firm of] Paul, Weiss. He knows the tobacco industry playbook that they used for years and years and continue to use. And he worked with the Chevron lawyers at Gibson, Dunn & Crutcher to implement them against me without a jury. And there was nothing I could do about it."

(Paul, Weiss is a large law firm that currently advises Chevron on its $13 billion purchase of another energy company.)

John Keker, one of Donziger's lawyers on that case, said he was up against 160 lawyers for Chevron and during the trial he felt "like a goat tethered to a stake." He called the court proceedings under Kaplan "a Dickensian farce" and a "show trial." In the end, Kaplan ruled that the judgment in the Ecuadorean court against Chevron was the result of fraud.

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Chris Hedges spent nearly two decades as a foreign correspondent in Central America, the Middle East, Africa and the Balkans. He has reported from more than 50 countries and has worked for The Christian Science Monitor, National Public Radio, The Dallas Morning News and The New York Times, for which he was a foreign correspondent for 15 years.

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