Top Canada Court: Ecuador Villagers Can Sue Chevron in Ontario

Canada's top court ruled on Friday that a group of Ecuadorean villagers could pursue a multi-billion pollution lawsuit against Chevron Corp in the Canadian province of Ontario.

Chevron is contesting a ruling by Ecuador's highest court, which said the firm had to pay $9.5 billion to clean up contamination at a site it once owned. The villagers are now going after Chevron assets for countries in Canada, Brazil and Argentina.

"Canadian courts, like many others, have adopted a generous and liberal approach to the recognition and enforcement of foreign judgments," said the Canadian Supreme Court, upholding a 2013 ruling by the Ontario court of appeal.

In a ruling that affirms existing law, the court rejected Chevron's argument that there was no legal basis for the villagers to sue Chevron Canada, its subsidiary, which was not part of the Ecuadorean judgment.

The villagers have been litigating the case for more than 20 years. They initially sued Texaco, which Chevron later acquired, over contamination in the jungle around Lago Agrio, Ecuador, between 1964 and 1992.

The Canadian Supreme Court said it was taking no position on the merits of the original case against Chevron, which says the American lawyer who helped secure the $9.5 billion Ecuadorean settlement used corrupt means.

(The case is Daniel Carlos Lusitande Yaiguaje and others vs Chevron Corporation and Chevron Canada Ltd, file no 35682)

(By David Ljunggren)