June 11, 2009
Activists Press for Transnational Litigation Agenda
Accountability & Transparency Trends
Recently we've written about the emergence of a transnational litigation network - government officials in developing countries, American trial lawyers, and non-governmental organizations (NGOs) working together to pursue claims against large U.S. corporations for alleged damages suffered by foreign nationals exposed to environmental and health risks. This growing trend could affect many US companies who may be targeted by trial lawyers working with foreign governments and foreign residents for large judgments and settlements.
John Bellinger, a former legal advisor to the U.S. State Department, had a very good piece in the Wall Street Journal recently warning about the impact that international cases brought against U.S. companies in U.S. courts (under the Alien Torts Statute) may have on diplomatic relations. One recent example of this transnational litigation trend is a lawsuit brought against Chevron in Ecuador by U.S. based trial lawyers. The case has received a great deal of attention as trial lawyers and activists tried to put pressure on the company at its annual shareholder meeting.
The campaign included street protests and an organized campaign to pressure pension funds and shareholders. Media reports point out that the resolution being pressed by the activists got no more votes than in past years despite an intense pressure campaign.
As the intensity of the plaintiff's campaign has increased media attention, a few blogs have provided a useful look at the case and the issues behind it. Bob McCarthy's blog looked at the finances of the "non-profits" behind the case. The post includes a statement by a spokeswoman for the Amazon Defense Coalition that the entire case and all of its costs are being paid by Kohn, Swift and Graf - a Philadelphia personal injury law firm. PointofLaw.com also features an interesting post concerning this issue.
As we've mentioned before, Chevron is not alone. In Nicaragua, Dole was sued over claims that workers in their fields were becoming sterile from exposure to chemicals used. After success in Nicaraguan courts, a U.S. court threw out the case and criticized the lawyers for trying to perpetrate a fraud. In another case, Occidental Petroleum is being sued by indigenous Peruvians in a case being handled by U.S. trial lawyers and supported by NGOs - by including some of the same NGOs involved with the Chevron case.
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