From the 1960s to the 1990s, a subsidiary of Texaco was involved in drilling for oil in the Ecuadorian jungle. In the 1970s, an oil company owned by the government of that country took majority control of the consortium. In 1992, Texaco sold its remaining interests to the Ecuador-owned company, and in 1998, the country confirmed that Texaco had successfully performed agreed-upon environmental cleanup and released it from future claims. The Ecuadorian company continued to operate in the area.
Donziger had worked as a journalist in Latin America, and attended Harvard Law School with the grandson of a former Ecuadorian president. Donziger said of Ecuadorian judges, ?They?re all corrupt? These judges are really not very bright.?
In 2003, he filed a lawsuit in that country against Chevron, which had since bought Texaco, asking for money for environmental cleanup. ?You can solve anything with politics as long as that judges are intelligent enough to understand the politics. They don?t have to be intelligent enough to understand the law,? he later said.
In 2011, the Ecuadorian judge, Nicolas Zambrano, ordered Chevron to pay $8.6 billion, which would double unless it issued an apology within 15 days.
Donziger and his team were purportedly representing a class of 30,000 indigenous residents. But they asked for any funds to go to a group that, as Kaplan later described, ?Donziger and some of his Ecuadorian associates controlled.?
Donziger stood to gain more than $600 million in fees, plus ?control of or influence over the billions? that would go to the group that would oversee the cleanup fund.
Chevron did not pay, contending that the judgment was the result of foreign judicial corruption. The battle for the money wound up in the U.S. courts ?where Judge Kaplan, who was appointed by the bench to Bill Clinton, found that Chevron was right.
In 2003, Donziger hired a scientist, David Russell, to provide evidence about environmental damage from oil companies in the area. Russell provided an early estimate of some $6 billion. But he had merely driven by some of the sites at 40 or 50 miles an hour, and did not analyze any soil or water samples.
Russell described the figure as a ?wild ass guess? and cautioned Donziger not to put too much stock in it. After Donziger ran with the figure, Russell cautioned that it was ?wildly inaccurate and that it should not be used.? Donziger?s team refused to pay him, and kept using the number.
Donziger hired a second scientific expert, Charles Calmbacher, who wrote another report, but Calmbacher later testified that he did not recognize what was ultimately submitted to the court in his name. Donziger?s team had asked him to sign a blank page, and apparently put a fake report above his signature.
By 2004, the team took samples that indicated that the contamination appeared to be more recent ? corresponding to drilling by Ecuador?s nationally-owned gas company after Texaco had left the country. A researcher said Donziger asked him to stop the tests because they ?would be counterproductive to the case.? They switched to a less reliable measure which could not differentiate between newer and older damage, and was more likely to give a false positive.
The Ecuadorian judge was facing unrelated sexual misconduct allegations, which Donziger sought to use to his advantage. He said ?we want to send a message to the court that, ?don?t f**k with us anymore ? not now and not ? not later, and never.? Donziger wrote in his journal that ?The judge needs to fear us for this to move how it needs to move.?
The judge appointed a scientific expert, Richard Cabrera, who would report directly to the court and be independent from either side. But Donziger?s team set up a secret bank account to pay Cabrera.
Donziger?s team communicated using code names, referring to the judge as the ?puppet? or ?cook? and the expert as the ?waiter.?
As part of his media strategy, Donziger recruited a film crew to make a documentary about his crusade, and outtakes from the film captured his interactions with Cabrera, which Donziger told the crew were ?off the record.?
In 2008, a report was submitted in Cabrera?s name setting the damage at $16.3 billion. Donziger later admitted that a Denver-based firm he had hired, Stratus Consulting, wrote most of the report in the ?independent? expert?s name, at Donziger?s direction. One of the lawyers on Donziger?s team wrote in 2010 that ?all of us, your attorneys, might go to jail.?
A Philadelphia lawyer named Joseph Kohn had been funding the case, but Kohn eventually wrote that Donziger was pumping him for money to fund ?extravagance? while refusing to ?come clean? about what was really going on. ?I now know that Mr. Donziger did not tell me the truth. It is now clear to me that Mr. Donziger deceived and defrauded me,? he testified.
In 2011, Ecuadorian judge Zambrano issued his ruling ordering Chevron to pay. But portions of his 188-page ruling were identical to internal documents written by Donziger?s team ? documents that had not been made public or filed with the court. Some even contained the same typos.
Forced to answer in U.S. court for such issues, Zambrano claimed that he paid an 18-year old girl $15 a day to help him write it. The opinion cited legal authorities in multiple languages which neither the girl nor the judge spoke.
Emails showed that Donziger?s team had appeared to assign an intern to work on ?the judgement.? Donziger later testified that it was ?possible? a member of his team wrote a proposed judgment for the judge.
Another Ecuadorian judge who was previously assigned to the case, Alberto Guerra Bastidas, testified that Donziger?s team promised to pay Zambrano $500,000 to throw the case. Bank records showed that Donziger?s team had also paid Guerra.
Confronted with mounting evidence of fraud, Donziger told the U.S. court he couldn?t remember basic details, answering ?I don?t know? or ?I don?t recall? to ?nearly every substantive question posed to him.?