The D.C. Circuit affirmed the trial court’s holding that it has jurisdiction under the Foreign Sovereign Immunities Act (FSIA) to confirm an arbitral award in Chevron’s favor and rejected Ecuador’s argument that confirmation should be denied under the New York Convention. Chevron Corporation and Texaco Petroleum Company v. The Republic of Ecuador, No. 13-7103, (D.C. Cir. August 4, 2015).
This long-standing battle between Chevron and Ecuador began in the early nineties when an agreement between the parties allowing Chevron to develop Ecuadorian oil fields in exchange for providing below-market oil to Ecuador was set to expire. Before the expiration date, Chevron filed several breach of contract suits against Ecuador. In 1995, the parties entered a settlement agreement terminating all rights and obligations between them but providing for the continuation of the pending lawsuits. [Read more…]