In Re Chevron Corporation

749 F. Supp. 2d 170, 2010 WL 4922312
CourtDistrict Court, S.D. New York
DecidedNovember 30, 2010
Docket10 MC 00002 (LAK)
StatusPublished
Cited by34 cases

This text of 749 F. Supp. 2d 170 (In Re Chevron Corporation) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Chevron Corporation, 749 F. Supp. 2d 170, 2010 WL 4922312 (S.D.N.Y. 2010).

Opinion

MEMORANDUM OPINION (Corrected)

LEWIS A. KAPLAN, District Judge.

Chevron is the target of litigation brought in Ecuador by the so-called Lago Agrio plaintiffs 1 in which the latter seek to recover $113 billion 2 for alleged environmental pollution by Texaco, Inc. (“Texaco”), from Texaco’s current owner, Chevron Corporation (“Chevron”). 3 Rodrigo Pérez Pallares and Ricardo Reis Veiga (the “Individual Petitioners”) are facing criminal charges there as a result of having signed a settlement of pollution claims on behalf of Texaco some years ago. The criminal charges at least in part are a result of an alliance between the Lago Agrio plaintiffs and the Ecuadorian government, which has both financial and political interests in the success of the lawsuit. Chevron and the Individual Petitioners have been seeking to defend themselves by obtaining discovery in the United States under Section 1782 of the Judicial Code, 4 which they believe will demonstrate that both the civil litigation and the criminal prosecution in Ecuador have been tainted by fraud and other misconduct by the Lago Agrio plaintiffs and improper collusion among them and the government of Ecuador (“GOE”).

This Court previously has recognized the urgency of the interests of Chevron and the Individual Petitioners. The Second Circuit has done so as well. 5 The reason is that the parties are engaged in a *173 race. The Individual Petitioners face a preliminary hearing on January 5, 2011 which will determine whether they must stand trial in Ecuador on allegedly tainted criminal charges. Chevron faces the possibly imminent entry of an allegedly tainted multi-billion dollar judgment in the Lago Agrio litigation. Chevron and the Individual Petitioners seek evidence that they hope will demonstrate that the proceedings against them have been tainted and, almost as important, to obtain it in time to use it in Ecuador and, in Chevron’s case, in international arbitration proceedings against the Republic of Ecuador. Both the Lago Agrio plaintiffs and the GOE have refused to stay or cooperate in efforts to stay the Ecuadorian proceedings pending resolution of this and other efforts by Chevron and the Individual Petitioners to obtain proof of their allegations through the collection of evidence in the United States. 6

In this proceeding, Chevron and the Individual Petitioners obtained subpoenas requiring Steven Donziger, a New York attorney involved with the Lago Agrio plaintiffs, to submit to a deposition and to produce documents. On October 20, 2010, the Court denied motions to quash made by both Donziger and the Lago Agrio plaintiffs, held that all claimed privileges had been waived by the failure to submit a privilege log, directed that Donziger comply with the subpoenas “forthwith,” and appointed a special master to preside over the deposition. 7

At this point, Donziger has produced some of the documents demanded by the subpoena. Instead of producing the balance, however, he submitted, on November 15, 2010, a purported privilege log — which is over 2,000 pages long and claims privilege as to 8,652 documents — and contends that he now should be permitted to litigate those privilege claims. The log includes claims of privilege as to approximately 2,500 or more documents sent or disclosed to a public relations person, the founder of the Amazon Defense Front or La Frente, Amazon Watch, the Wall Street Journal, Bloomberg News, Conde Nast, The New York Times, and the Los Angeles Times. Moreover, the 8,652-item privilege log lists not even one document that was written by or addressed to any of the Lago Agrio plaintiffs — the clients whose privilege supposedly is being asserted.

Chevron and the Individual Petitioners now move by order to show cause for an order requiring Donziger to do what the October 20, 2010 order already required— to produce all of the responsive documents forthwith. The Republic of Ecuador (“GOE”) also moves for leave to intervene, claiming that it shares a common interest privilege with the Lago Agrio plaintiffs.

Facts

The background of this litigation is amply set forth in the Court’s prior opinions, familiarity with which is assumed. 8 The *174 Court therefore turns to the prior proceedings that frame the present issues.

The Summary Order

Donziger and the Lago Agrio plaintiffs moved to quash the subpoenas on a variety of grounds including, among others, the claim that they called for the production of materials protected by the attorney-client privilege and the work product doctrine. They did not, however, submit a privilege log as required by the rules. Given the Individual Petitioners’ and Chevron’s urgent need for appropriate discovery, the Court ruled on the motions to quash by summary order, indicating that a full opinion would follow. Four aspects of the Summary Order are of particular relevance here:

First, it held that the privilege and work product objections with respect to deposition testimony by Donziger were premature and could be dealt with only in the context of specific questions posed to him at the deposition. 9

Second, it held that any privilege and work product claims with respect to the subpoenaed documents had been waived by the failure to submit a privilege log as required by S.D.N.Y. Crv. R. 26.2 and Fed. R. Civ. P. 26(b)(5). 10 It stated, however, that the Court might, “in the exercise of its discretion!,] ... relieve [Donziger] of the waiver” if he “file[d] a complete privilege log on or before October 29, 2010.” 11

Third, it directed Donziger to comply with the subpoenas “forthwith.” 12 That is, it directed him both to testify and to produce all of the requested documents without delay.

Fourth, it appointed a special master to preside at the deposition and to resolve, subject to review by this Court, any privilege and work product claims made in response to specific questions posed to Donziger. 13

Subsequent Proceedings in this Court

On October 25, 2010, Donziger moved in this Court for reconsideration of the Summary Order “solely to the extent that the Order holds that ‘[i]nsofar as [Donziger] claims privilege with respect to the requested documents, the failure to file a privilege log as required by Local Civ. R. 26.2 and Fed.R.Civ.P.

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Cite This Page — Counsel Stack

Bluebook (online)
749 F. Supp. 2d 170, 2010 WL 4922312, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-chevron-corporation-nysd-2010.