Follows August Ruling that Cancer Claims were Fabricated
SAN RAMON, Calif., Oct. 18 /PRNewswire-FirstCall/ -- The U.S. District
Court for the Northern District of California has imposed sanctions against
three attorneys, including Cristobal Bonifaz, for fabricated cancer claims
against Chevron (NYSE: CVX). Bonifaz is the architect of the ongoing
litigation against Chevron in Ecuador. The lawsuits relate to Texaco
Petroleum Company's former operations in the country.
The sanctions against the lawyers, which include a $45,000 fine, follow
an August ruling by the same Court dismissing three personal injury claims
against Chevron because they were knowingly false. One never had been
diagnosed with breast cancer, as alleged. The second falsely claimed that
her son had leukemia. The third admitted that he had no injuries, contrary
to his allegations in the complaint.
In his ruling imposing the sanctions, Judge William Alsup declared that
the cancer claims brought by three attorneys, Cristobal Bonifaz, Terry
Collingsworth and Paul Hoffman, "were baseless and made without reasonable
and competent inquiry."
"The sad fact is that counsel's haste to sue and lassitude in
investigation imposed a real and unnecessary burden on defendants, our
judicial systems and, truth be told, the three plaintiffs, who never even
realized litigation would be brought in their name in the United States,"
wrote Judge Alsup in his order.
In describing the conduct of attorneys Bonifaz, Collingsworth and
Hoffman, Judge Alsup wrote, "Counsel were obligated to investigate first
and sue second, not the other way around. Counsel cannot avoid Rule 11
sanctions 'by operating under the guise of a pure heart and an empty head.'
Had counsel conducted a reasonable investigation, they would have easily
discovered the baselessness of these cancer claims."
Judge Alsup called Cristobal Bonifaz "the lead and the moving force"
behind the lawsuit filed against Chevron in April, 2006 on behalf of nine
Ecuadorians. Four of those plaintiffs eventually dropped out of the
lawsuit. With the dismissal of three of the other claims, only two remain.
"This order finds that Attorney Bonifaz was the primary lawyer at fault
and bears the most responsibility for the team's deficient performance. But
Attorneys Collingsworth and Hoffman likewise signed pleadings without
reasonable and competent investigation. The totality of all their inquiry
was so minimal as to be unreasonable and incompetent," wrote Judge Alsup.
Collingsworth was also for a time representing Petroecuador in its defense
against Chevron's arbitration claim seeking indemnification for any rulings
against the company.
The California case is the third in a series of lawsuits brought by
Bonifaz since 1993. Judge Alsup declared in a prior ruling that "This is
not the first evidence of possible misconduct by plaintiffs' counsel in
this case. It is clear to the Court that this case was manufactured by
plaintiffs' counsel for reasons other than to seek a recovery on these
plaintiffs' behalf. This litigation is likely a smaller piece of some
larger scheme against defendants."
To read Judge Alsup's ruling, please view
http://www.texaco.com/sitelets/ecuador/docs/orderimposingsanctionsen.pdf.
For additional information on this litigation, please visit
http://www.texaco.com/sitelets/ecuador/en/.
SOURCE Chevron
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Related links:
http://www.chevron.com
http://www.texaco.com/sitelets/ecuador/en/
http://www.texaco.com/sitelets/ecuador/docs/orderimposingsanctionsen.pdf
CONTACT:
Kent Robertson, +1-925-842-1695, for Chevron
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