An Ecuadorean appeals
court has upheld a ruling that Chevron should pay damages totalling
$18.2bn (£11.5bn) over Amazon oil pollution.
Chevron said the judgement was "illegitimate" and "a fraud".
Texaco, which merged with Chevron in 2001, was accused of dumping toxic materials in the Ecuadorean Amazon.
In February, an Ecuadorean court ordered Chevron to pay $5.9bn in damages. That figure more than doubled in a later ruling.
"We ratify the ruling of February 14 2011 in all its parts,
including the sentence for moral reparation," the court in the Amazonian
city of Lago Agrio said in its ruling, according to Reuters.
Long-running battle
In a statement released in response, Chevron said
the decision was a "glaring example of the politicization and
corruption of Ecuador's judiciary". It said it would continue to seek
recourse through proceedings outside Ecuador.
The decision is the latest twist in a long-running legal battle between Chevron and the Ecuadorean plaintiffs.
The lawsuit was brought on behalf of 30,000 Ecuadoreans, in a case which has dragged on for years.
Ecuadorean indigenous groups said Texaco dumped more than
18bn gallons (68bn litres) of toxic materials into unlined pits and
rivers between 1972 and 1992.
But Chevron says Texaco spent $40m cleaning up the area
during the 1990s, and signed an agreement with Ecuador in 1998 absolving
it of any further responsibility.
In September, a US appeals court overturned a decision to block the collection of the fine from the company.
Plaintiffs, who had agreed not to attempt to collect the
damages until the appeals process was completed in Ecuador, welcomed
Tuesday's ruling.
"This (ruling) confirms and ratifies that the company polluted and affected the Amazon," they said in a statement.
"It is necessary to clarify that no amount will be enough to
repair all the crime they did in our area, nor will it be enough to
bring the dead back to life."
Ecuador's President Rafael Correa described the dispute as a "David and Goliath" battle.
"I think justice has been done," he said after the decision was announced.
"The harm that Chevron caused to the Amazon cannot be denied."
Chevron has challenged the fine, arguing that lawyers and
supporters of the indigenous groups who brought the case conspired to
fabricate evidence.
In a separate case,
International arbitrators
have ordered the Ecuadorean government to pay $96m to Chevron because
Ecuador's courts had violated international law as a result of delays in
resolving commercial disputes involving Texaco.
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