Judge in Chevron Case Agrees to Step Aside

By MERCEDES ALVARO
QUITO -- The Ecuadorean judge purportedly caught on videotape discussing a multibillion-dollar lawsuit against Chevron Corp. over environmental damage in the Amazon has recused himself from the case.
Ecuador's attorney general, Washington Pezantes, said Friday that he had asked Judge Juan Núñez to withdraw from the case, which has garnered international attention and highlighted Ecuador's uncertain investment climate.
The recusal is a significant victory for Chevron, which has argued that the Ecuadorian judicial system is too corrupt to render a fair verdict in the long-running environmental lawsuit. The move could delay a ruling in the case, which had been expected by the end of the year and was widely expected by both sides to be against the San Ramon, Calif., oil company.
Chevron released recordings Monday that it claims show Mr. Núñez, who oversees the Lago Agrio court where the trial is being held, affirming that he would hold the company culpable for environmental damages. The company said the videos prove the judge, who was still considering evidence, is biased and should be disqualified from the case.
Mr. Núñez has contended that the video footage was manipulated. Chevron has said the videos are authentic and haven't been doctored.
"I have communicated with both sides in this case that I recuse myself from continuing with this case," Mr. Núñez said. "However, I will continue with my work as a judge, and as president of the Lago Agrio court, because I have not committed any illegality or irregularity."
Mr. Núñez declined to explain the reason for his recusal. He said he had notified Chevron and the plaintiffs, a group residing in the Amazon region that is suing Chevron for contamination caused decades ago by the oil operations of Texaco, which Chevron acquired in 2001, of his decision. Chevron has said Ecuador released it from liabilities after a cleanup by the company. The plaintiffs say the release applied only to claims by the government, not those made by private citizens.
Chevron has said in recent months that it expects to lose the case in Ecuador, but will fight enforcement of the ruling in the United States in part on the grounds that Ecuador's judiciary is insufficiently independent.
Steven Donziger, an attorney for the plaintiffs, said in a statement that Mr. Núñez's recusal shows the Ecuadorian judicial system is fair. He repeated earlier questions about the recording's authenticity.
"We again call on competent authorities in Ecuador and the United States to investigate any role Chevron and its officials might have played to script a bribery scheme for purposes of extracting an advantage in a private litigation," Mr. Donziger said in a statement.
Chevron has said the videos are authentic and haven't been manipulated.
Mr. Pezantes told reporters at a press conference Friday he had asked Judge Núñez to recuse himself from the case to give greater transparency to the investigation of the videos that his office is conducting.
"I presume the innocence of the judge," Mr. Pezantes said, adding that he trusts in the judge's honesty. But to remove any doubts about the investigation, the judge must recuse himself, he said.
Over the years, many different judges have overseen the long-running litigation.
Chevron General Counsel Hewitt Pate said the judge's recusal is insufficient, arguing his prior rulings in the case should also be annulled.
"We also hope that the removal of Judge Nunez is not an attempt to deflect attention from the serious indications of political interference with the case that appear in the video recordings," Mr. Pate said, calling for "an independent and honest investigation of the evidence that Chevron brought forward."
Write to Mercedes Alvaro at mercedes.alvaro@dowjones.com