Oil extraction in Ecuador

For decades Texaco extracted oil from the jungle in Ecuador. In 1993 Texaco, which has since been bought by Chevron, was sued for contamination leading to increased cancer rates in indigenous populations. They allegedly improperly disposed of 18 billion gallons of waste, including 18 million gallons of crude oil. In 2011 they were found guilty in an Ecuadorian court. In response, Chevron refused to pay, saying that the ruling was an act of extortion and fraud. I read Chevron's press release, and their sources that they claim point to fraud. However, they have quoted portions of emails, and when read in context don't actually say what Chevron claims they say. A U.S. judge ruled that Ecuador cannot pursue collection based on the possibility that Chevron will receive a favorable ruling in their countersuit accusing the plaintifs of fraud, and that "Chevron would be forced to defend itself and litigate the enforceability of the Ecuadorean judgment in multiple proceedings. There is a significant risk that assets would be seized or attached, thus disrupting Chevron's supply chain, causing it to miss critical deliveries to business partners." However, since it was tried in Ecuador (at Chevon's request) what jurisdiction does a U.S. court have? "U.S. Circuit Judge Gerald E. Lynch suggested a ruling in the company's favor might set a precedent that would allow U.S. judges to "trump ... the law of every other country in the world." It will be interesting to see how this plays out, because it will effect how other countries manage their environmental degradation.

Key sources:
http://www.washingtonpost.com/wp-dyn/content/article/2009/04/27/AR2009042703717.html
http://www.bbc.co.uk/news/world-latin-america-12460333
http://www.huffingtonpost.com/2011/09/16/chevron-on-the-defensive-in-court_n_966465.html
http://www.huffingtonpost.com/2011/03/08/federal-judge-bans-collection-chevron-ecuador_n_832714.html