In its dispute with Chevron Corporation regarding the Lago Agrio litigation, the Republic of Ecuador has frequently been on the losing end of discovery applications filed by Chevron pursuant to 28 U.S.C. section 1782. In Republic of Ecuador, et al. v. John A. Connor, Chevron Corporation, et al., Nos. 12-20122/20123, 2013 WL 539011 (5th Cir. February 13, 2013), Ecuador filed its own section 1782 application in the U.S. District Court for the Southern District of Texas, seeking discovery from an individual and his company for use in the UNCITRAL arbitration pursued by Chevron under the United States-Ecuador Bilateral Investment Treaty (the BIT arbitration), stemming from the actions of the Ecuadorian courts. Chevron intervened and opposed the application. The district court ruled in Chevron’s favor. However, the Fifth Circuit reversed the district court’s order and remanded for determination of the scope of discovery. The Fifth Circuit held that because Chevron had “benefitted repeatedly against Ecuador and others that the arbitration is a ‘foreign or international tribunal’” and that position was inconsistent with its argument in this dispute, “judicial estoppel is appropriate to make discovery” under section 1782.
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