On Feb. 16, Chevron Corp. won an arbitral award neutralizing the $18 billion Ecuadorian judgment now on appeal in that country — only to have an Ecuadorian court defy the arbitrators the next day. After holding emergency hearings over the prior weekend, three international arbitrators sitting under the auspices of the Permanent Court of Arbitration issued an interim order, directing the Republic of Ecuador (including its judicial branch) not to certify the $18 billion judgment for enforcement.
Chevron is betting heavily on this arbitration, and on its arbitral counsel at King & Spalding, to limit its exposure now that the U.S. Court of Appeals for the 2d Circuit has held that U.S. courts can’t enjoin the enforcement of this award.
