Ecuadorean plaintiffs took the first steps yesterday toward enforcing an $18 billion judgment against Chevron Corp. by filing a lawsuit in Canada.

By filing an enforcement action in Toronto seeking recognition of the Ecuadorean court's mammoth judgment, the plaintiffs opened a new front in the all-out legal battle they are fighting against the San Ramon, Calif.-based oil giant.

The plaintiffs originally filed suit almost 20 years ago over environmental damage in eastern Ecuador.

Last year, a judge in Ecuador ruled that Chevron was liable for up to $18 billion for contamination caused by Texaco Petroleum Co. Chevron acquired Texaco in 2001.

Chevron is fighting to avoid paying anything. The oil company says that the entire case against it is a sham and that the Ecuadorean court system is corrupt. The plaintiffs have responded with their own allegations about Chevron's conduct during the litigation.

Yesterday's filing in Canada is vital for the plaintiffs because Chevron has no assets in Ecuador. Their strategy is to file enforcement actions in numerous countries where Chevron does operate. In Canada, Chevron operates service stations and has a 20 percent interest in the Athabasca Oil Sands Project, according to the plaintiffs.

In a conference call today with reporters, Ecuadorean plaintiffs' attorney Pablo Fajardo said via a translator that further enforcement actions in other countries will follow soon. The first could be as soon as June.

"We are currently analyzing a list of about 30 countries," he said.

Canada was at the top of the list in part because it "has a great tradition of upholding foreign decisions" and "the judiciary is respected throughout the world," Fajardo said.

Responding to the filing, Chevron spokesman Kent Robertson said in a statement that the company "does not believe that the Ecuador judgment is enforceable in any court that observes the rule of law."

The plaintiffs' move to enforce the ruling comes as the international legal battle with Chevron continues.

Further complicating matters is the fact that Chevron is pursuing racketeering charges against the plaintiffs' legal team via a lawsuit it filed in the Southern District of New York last year. Meanwhile, an international arbitration panel is considering a 2009 claim brought by Chevron against Ecuador in which the oil company says the Andean nation violated a bilateral trade agreement between it and the United States.

The plaintiffs' filing yesterday coincided with Chevron's annual meeting, at which the company's handling of the case was questioned (EnergyWire, May 31).

Click here to read the E&E special report on the Chevron litigation.