Chevron Corp. v. Donziger
833 F.3d 74 | Court of Appeals for the Second Circuit | 2016
What This Case Means for Subcontractors
Chevron sued to stop enforcement of an $8.6 billion judgment against it from an Ecuadorian court. The appeals court agreed with Chevron that the judgment was obtained through bribery, coercion, and fraud, and blocked it from being enforced. This matters to subcontractors because it shows courts will reject foreign judgments obtained dishonestly, protecting companies from paying fraudulent claims.
Key Takeaways
- •Courts will not enforce foreign judgments if they were obtained through bribery, coercion, or fraud—even for massive amounts
- •Document everything in disputes: fraudulent judgments can be challenged and overturned on appeal if you have evidence of misconduct
- •If you're owed money from a foreign judgment, make sure it was obtained fairly or it may be unenforceable in U.S. courts
Ecuadorian Judgment was procured through bribery, coercion, and fraud.
Frequently Asked Question
Can I enforce a judgment from another country if it was obtained dishonestly?
No. U.S. courts will refuse to enforce foreign judgments procured through bribery, coercion, or fraud. If you discover the judgment against you was obtained improperly, you can challenge its enforcement in court. Document all evidence of misconduct to support your defense.
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