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Chevron Loses Injunction in $18 Billion Ecuador Case

from Reuters

A U.S. appeals court threw out an injunction that Chevron Corp had won to block enforcement of an $18 billion judgment in Ecuador for polluting the Amazon jungle and damaging the health of residents.

The 2nd U.S. Circuit Court of Appeals in New York said Chevron acted prematurely in seeking to block enforcement of the judgment worldwide, given that the residents of Ecuador's Lago Agrio region had not yet sought to enforce it. Chevron says the Ecuadorean judgment is fraudulent and is appealing it separately.

Thursday's decision overturned a March 2011 injunction issued by U.S. District Judge Lewis Kaplan in Manhattan to block enforcement of the judgment, imposed by an Ecuadorean court in February 2011. The appellate court also directed Kaplan to dismiss Chevron's complaint.

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