• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

'I literally was crying last night because I’m nervous about what I’m going to find out': a record 51% of Americans aren't 'cost secure' on health

2

Jeff Bezos pledged $10 billion for climate change. With the 2030 clock ticking, his wife, Lauren Sánchez Bezos, is leading the charge to spend it

3

A new trade war may be brewing. This time, Europe is taking a page from Trump's playbook — 'We no longer live in a world of pink ponies and rainbows'

1

'I literally was crying last night because I’m nervous about what I’m going to find out': a record 51% of Americans aren't 'cost secure' on health

2

Jeff Bezos pledged $10 billion for climate change. With the 2030 clock ticking, his wife, Lauren Sánchez Bezos, is leading the charge to spend it

3

A new trade war may be brewing. This time, Europe is taking a page from Trump's playbook — 'We no longer live in a world of pink ponies and rainbows'
The 21st Century Corporation

Attorney Who Took Chevron to Court for $18 Billion Suspended by Amazon Defense Front

By
Roger Parloff
Roger Parloff
Down Arrow Button Icon
By
Roger Parloff
Roger Parloff
Down Arrow Button Icon
July 31, 2016, 12:35 PM ET
Add Fortune on Google for similar content.

The celebrated Ecuadorian attorney who collected a CNN Hero award in 2007, a Goldman Environmental Prize in 2008, and a hagiographic 13,000-word profile in Vanity Fair that same year, was “suspended” by his key client Friday, which also threatened to sue him for up to $112 million.

The attorney in question is Pablo Fajardo, and the client is the Amazon Defense Front (ADF). Working side-by-side with controversial New York lawyer and strategist Steven Donziger, Fajardo won an epic $18.2 billion environmental judgment against Chevron in a Ecuadorian court in 2011—later reduced to $9.5 billion.

The award—to be administered by the ADF—was for environmental damage sustained in the Amazon rainforest near Lago Agrio, Ecuador, allegedly from oil drilling between the 1960s and 1991 by Texaco—which Chevron later acquired.

Not a dime has yet been paid on the judgment, however. Chevron has no assets in Ecuador and, in March 2014, the oil giant won a ruling from a Manhattan federal judge barring the Ecuadorians from going after its U.S. assets on the grounds that Donziger and Fajardo had won the judgment through fraud and bribery—even going so far as ghost-writing the Ecuadorian trial judge’s purported ruling. (Fajardo refused to appear in the U.S. court, so a default judgment was entered against him.) Donziger, who denies wrongdoing, has appealed the ruling against him. His case was argued in April 2015, but the appellate court has yet to issue a decision.

Though neither Fajardo nor Donziger are formally executive officers of the ADF, they have long been believed—together with ADF founder Luis Yanza—to be its effective leaders, as Judge Lewis Kaplan concluded that they were in his March 2014 decision.

But a severe rift at ADF appears to have been ignited a week ago when the Ecuadorian government paid Chevron $112 million to satisfy an arbitration award stemming from an old commercial debt unrelated to the multi-billion-dollar environmental dispute.

The payment was immediately surprising at two levels. First, Ecuadorian President Rafael Correa has frequently railed against the legitimacy of international arbitration tribunals and has vowed not to honor their findings. Second, the ADF had won an “embargo” from an Ecuadorian court against this particular arbitration award, essentially giving the ADF a lien on it.

In other words, if the leftist Correa government—which has long been a strong champion of the ADF’s fight against Chevron—was going to pay the award to anyone, it was supposed to pay it to the ADF to begin to satisfy its $9.5 billion environmental judgment against Chevron. Mysteriously, the Ecuadorian court’s embargo had been lifted just before the government paid the money to Chevron.

The other shoe fell Friday. In a press release the ADF claimed it had been “stunned” to learn that it was Fajardo who had “lifted” the embargo “without [its] permission…apparently…at the behest of individuals in Ecuador’s government.” The group said it had, as a consequence, “suspend[ed] ties” with Fajardo and hired Ecuadorian attorney Patricio Salazar to lead an investigation.

“Mr. Fajardo himself is potentially liable personally to his own clients for damages caused, including the amount of funds that were lost,” the release said, quoting an ADF official.

Fajardo could not be reached for comment. The ADF’s U.S. press representative, Karen Hinton, said she’d let the release “speak for itself.” (Neither her name nor that of any other press representative appears on the release, which is unusual for ADF releases.)

Hinton said that Donziger remains the ADF’s U.S. legal adviser. Donziger did not respond to emails seeking comment.

Born dirt-poor, Fajardo began work on the case as a paralegal, but in 2005, after putting himself through law school, became the lead Ecuadorian attorney on the case.

Observers have speculated that Ecuador’s decision to pay its $112 million arbitration debt to Chevron reflects its desire to attract Western investment, which could help pull it out of recession. The country has been hard hit by low oil prices, as well as by a devastating earthquake along its coast in April. The country also paid a $980 million arbitration judgment to Occidental Petroleum earlier this year.

Chevron greeted the $112 million payment with a single sentence acknowledgment: “Chevron is pleased that the Republic of Ecuador has met its international obligation by paying this award.”

The terseness of the statement may reflect its skepticism about Ecuador’s willingness to abide by a much more momentous arbitration case that was argued in April 2015, and where a decision could be handed down any day. In that case, Chevron has asked a panel of international arbitrators to rule that the ADF’s suit was barred all along by releases Ecuador signed in the 1990s, that the $9.5 billion judgment achieved in it was procured by fraud and denial of due process, and that Ecuador’s existing environmental problems are its own responsibility.

About the Author
By Roger Parloff
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

Jamie Dimon, chief executive officer of JPMorgan Chase & Co., during a Bloomberg Television interview on the sidelines of the JPMorgan China Summit in Shanghai, China, on Thursday, May 21, 2026.
EconomyJamie Dimon
If you’re surprised by how well the stock market is doing, so is Jamie Dimon—he says there’s a ‘little tsunami’ heading for the economy
By Eleanor PringleJune 21, 2026
58 minutes ago
zeke
CommentaryFather's Day
Ezekiel Emanuel: My father lived into his 90s. He understood something many successful men miss
By Ezekiel J. EmanuelJune 21, 2026
2 hours ago
Tom Llamas at the anchor desk
SuccessCareers
NBC’s Tom Llamas climbed from 15-year-old intern to the top anchor chair—and still isn’t satisfied: ‘If you’re not growing, you’re dying’
By Preston ForeJune 21, 2026
2 hours ago
A man holds a grocery basket and walks down the aisle of a store.
RetailFood and drink
Your ‘proteinmaxxing’ is creating a whey shortage that’s ratcheting up prices and leaving snack companies to eat costs or make recipes worse
By Sasha RogelbergJune 21, 2026
2 hours ago
Tenzin Seldon is the founder and managing partner of Pulse Fund,
CommentaryGLP-1s
Tenzin Seldon: The GLP-1 boom is the biggest climate story no one is pricing in
By Tenzin SeldonJune 21, 2026
2 hours ago
Julia Bartak
CommentaryGen Z
Edward Jones advisor: Gen-Z doesn’t want an office happy hour. They want financial security
By Julia BartakJune 21, 2026
2 hours ago

Most Popular

'I literally was crying last night because I’m nervous about what I’m going to find out': a record 51% of Americans aren't 'cost secure' on health
Health
'I literally was crying last night because I’m nervous about what I’m going to find out': a record 51% of Americans aren't 'cost secure' on health
By Ali Swenson, Amelia Thomson-Deveaux and The Associated PressJune 20, 2026
20 hours ago
Jeff Bezos pledged $10 billion for climate change. With the 2030 clock ticking, his wife, Lauren Sánchez Bezos, is leading the charge to spend it
Environment
Jeff Bezos pledged $10 billion for climate change. With the 2030 clock ticking, his wife, Lauren Sánchez Bezos, is leading the charge to spend it
By Sydney LakeJune 19, 2026
2 days ago
A new trade war may be brewing. This time, Europe is taking a page from Trump's playbook — 'We no longer live in a world of pink ponies and rainbows'
Economy
A new trade war may be brewing. This time, Europe is taking a page from Trump's playbook — 'We no longer live in a world of pink ponies and rainbows'
By Jason MaJune 20, 2026
15 hours ago
Nvidia CEO Jensen Huang says electricians and plumbers will be needed by the hundreds of thousands in the new working world
Success
Nvidia CEO Jensen Huang says electricians and plumbers will be needed by the hundreds of thousands in the new working world
By Preston ForeJune 20, 2026
1 day ago
The Great Recession’s missing children are finally bringing college’s financial crisis into sight. Welcome to the ‘enrollment volatility’ era
Economy
The Great Recession’s missing children are finally bringing college’s financial crisis into sight. Welcome to the ‘enrollment volatility’ era
By Tristan BoveJune 20, 2026
1 day ago
Microsoft boss Steve Ballmer publicly dismissed Chrome as a 'rounding error'—but Google’s CEO says he used the jab as fuel to win the browser-wars
Success
Microsoft boss Steve Ballmer publicly dismissed Chrome as a 'rounding error'—but Google’s CEO says he used the jab as fuel to win the browser-wars
By Preston ForeJune 17, 2026
4 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.