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12/14/10 BIT: Memorandum of Law in Support of Respondents- Appellees’ Motion to Supplement the Record.

12/14/10 BIT: Memorandum of Law in Support of Respondents- Appellees’ Motion to Supplement the Record.

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Published by TexacoEcuador

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Published by: TexacoEcuador on Dec 17, 2010
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05/12/2014

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IN THE UNITED STATES COURT OF APPEALSFOR THE SECOND CIRCUIT
------------------------------------------------------------------REPUBLIC OF ECUADOR,
 Petitioner-Appellant 
,DANIEL
 
CARLOS
 
LUSITAND
 
YAIGUAJE,
 
et al.,
 Petitioners-Appellants
,v.CHEVRON CORPORATION andTEXACO PETROLEUM COMPANY,
 Respondents-Appellees
.------------------------------------------------------------------x:::::::::::x No. 10-1020-cv(L) No. 10-1026(CON)
MEMORANDUM OF LAW IN SUPPORT OFRESPONDENTS-APPELLEES’ MOTIONTO SUPPLEMENT THE RECORD
ING
&
 
S
PALDING
 Edward G. KehoeDaniel J. King1185 Avenue of the Americas New York, New York 10036(212) 556-2100G
IBSON
,
 
D
UNN
&
 
C
RUTCHER 
LLPRandy M. Mastro200 Park Avenue New York, New York 10166(212) 351-4000Scott A. Edelman2029 Century Park EastLos Angeles, CA 90067(310) 552-8500Thomas G. Hungar 1050 Connecticut Avenue, N.W.Washington, DC 20036(202) 955-8500
 
CORPORATE DISCLOSURE STATEMENT
Pursuant to Federal Rule of Appellate Procedure 26.1, undersigned counsel state thatChevron Corporation is a publicly traded company (NYSE: CVX) that has no parent company. No publicly traded company owns 10% or more of its shares. Texaco Petroleum Company is afifth-tier subsidiary of Chevron Corporation, and no other publicly held company owns 10% or more of its stock.
 
i
TABLE OF CONTENTS
Page(s)PRELIMINARY STATEMENT....................................................................................................1BACKGROUND............................................................................................................................5FACTUAL SUMMARY................................................................................................................6I. The Newly Obtained Evidence Shows That Plaintiffs Have ContinuouslyColluded With the Ecuadorian Government to Inflict Significant Harm onChevron................................................................................................................................6A. The Newly Obtained Evidence Confirms That Ecuador and PlaintiffsHave Collaborated Far More Extensively Than They Have Admitted....................6B. The Newly Obtained Evidence Confirms That the Government of Ecuador and Plaintiffs Colluded to Nullify the 1998 Release and Instigate FalseCriminal Charges Against Chevron’s Attorneys.....................................................9C. The Newly Obtained Evidence Confirms That Plaintiffs’ Counsel andConsultants Colluded Extensively With the “Independent” Court Expert............11II. The Newly Obtained Evidence Demonstrates That Plaintiffs Come to This CourtWith Unclean Hands..........................................................................................................13A. The Newly Obtained Evidence Further Proves Plaintiffs’ Involvement inThreats Against and Intimidation of the Ecuadorian Judiciary.............................13B. The Evidence Shows That Plaintiffs, Their Attorneys, and Their Consultants Have Manipulated Damages Estimates, Fabricated Evidence,and Flouted the Law Throughout the Lago Agrio Proceedings.............................14C. The Evidence Demonstrates That Plaintiffs and Their Agents Engaged inLarge-Scale Fraud to Extort Billions of Dollars From Chevron............................16D. The Documents of Plaintiffs’ Agents Vindicate Chevron’s RepeatedlyExpressed Concerns Regarding Spoliation of Evidence and the Need toSubpoena Critical Evidence...................................................................................16ARGUMENT................................................................................................................................17I. The Court Should Permit Supplementation of the Record................................................17II. The Rapidly Mounting Evidence of Fraud and Corruption Makes Clear ThatEquity Precludes a Stay of Arbitration for Plaintiffs’ Benefit...........................................19

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