Fraud or misrepresentation

Chevron Corp. v. Donziger

U.S. District Court, S.D.N.Y.; Second Circuit · US (NY) · 2014 · Decided

Citation/Docket: 974 F. Supp. 2d 362 (S.D.N.Y. 2014), aff'd 833 F.3d 74 (2d Cir. 2016)

Parties & Funders

Posture: Defendant company's RICO action against claimant team
Funder(s) involved: Burford Capital and others (Treca facility) funded the Lago Agrio claimants

Background

Chevron's RICO case over the $9.5B Ecuadorian judgment exposed the funding arrangements behind the Lago Agrio litigation; Burford later stated it had been defrauded by the claimant team and exited.

Holding & Outcome

Judgment held procured by fraud and unenforceable in the U.S.; the funding agreement's terms became public evidence.

Practical Lesson

Funder diligence must extend to the integrity of the funded team, not just claim merits; funding agreements can become trial exhibits.

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Compiled from public sources (court filings, published opinions, and secondary reporting) as part of the Institute's Phase 1 Dispute Library research. This is educational material, not legal advice; case citations should be independently verified before relied upon.

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