The two mega-disputes briefly converged in late September, making news within a span of less than 12 hours. First, on Sept. 19 the U.S. Court of Appeals for the Second Circuit lifted the U.S. injunction on enforceability of the $18 billion Ecuadorian judgment against Chevron. The next day, the European Court of Human Rights issued a mixed ruling on the Yukos property claim against Russia. The common lesson is that a lifetime of litigation is apt to end in arbitration.
The Second Circuit has yet to issue a full opinion in the Chevron case, and what will be the scope of the court’s rationale is anyone’s guess. If the appellate judges are merely worried about ripeness, then Chevron may ask for a similar injunction later. If the Second Circuit rests its ruling on subject matter jurisdiction under the New York recognition act, then Chevron might seek a new injunction under its Racketeer Influenced and Corrupt Organizations Act or fraud claims. On the other hand, if the Second Circuit cites broad comity grounds—or a failure to satisfy the test for foreign anti-suit injunctions—that would take U.S. courts out of the global game of cat and mouse altogether. Hints can be gleaned from oral arguments for any of these outcomes.
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