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Ecuador Court Snubs Arbitration Panel on Chevron

A court has rejected an arbitration panel order seeking to prevent Amazon rain forest residents from collecting an $18 billion award against Chevron for oil contamination.

QUITO, Ecuador (AP) — An Ecuadorean appeals court has rejected an order by an international arbitration panel seeking to prevent Amazon rain forest residents from collecting an $18 billion damage award against Chevron Corp. for oil contamination.

The Sucumbios provincial court ruled Friday that human rights considerations trump any concerns that a February 2011 court judgment against Chevron might violate a U.S.-Ecuador investment treaty.

The Netherlands-based Permanent Court of Arbitration had issued its provisional order on Thursday. It has yet to rule on the merits of Chevron's claim.

Chevron was ruled liable for pollution caused by Texaco between 1972 and 1990. Chevron bought Texaco in 2001.