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Keywords

defendantdiscoveryinjunctionappealtrialcorporationadmissibility
subpoenadiscoveryhearingmotion

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Chevron Corp. v. Aguinda Salazar, Not Reported in F.Supp.2d, 2011 WL 2207555

Facts

The defendants obtained a judgment against Chevron in Ecuador, which Chevron contended was not enforceable outside Ecuador. Following a preliminary injunction that favored Chevron, the LAP Representatives sought to stay discovery related to Chevron's claims, arguing that the discovery was excessive and aimed at depleting their resources. The court had previously bifurcated Chevron's claims and set a trial date, leading to the current dispute over the discovery process.

On March 7, 2011, this Court preliminarily enjoined enforcement of the Judgment outside Ecuador.

Issue

Whether the court should grant a stay of discovery pending the LAP Representatives' appeal of the preliminary injunction.

Whether the Court should grant a stay of discovery until the LAP Representatives' motion for similar relief is fully briefed and decided.

Rule

Parties may obtain discovery regarding any nonprivileged matter that is relevant to any party's claim or defense, and relevant information need not be admissible at trial if it is reasonably calculated to lead to the discovery of admissible evidence.

Rule 26(b)(1) provides that '[p]arties may obtain discovery regarding any nonprivileged matter that is relevant to any party's claim or defense.'

Analysis

The court found that the LAP Representatives exaggerated the extent of the discovery sought by Chevron and that the discovery requests were not overly burdensome. The court emphasized that the LAP Representatives did not provide evidence to support their claims of resource depletion or that the discovery requests were irrelevant. The court also noted that uncertainty regarding the admissibility of evidence does not justify a stay of discovery.

The LAP Representatives have exaggerated the extent of the outstanding discovery sought by Chevron and, to a significant degree, sought to manufacture a 'crisis' in an attempt to justify this application.

Conclusion

The court denied the LAP Representatives' application for a stay of discovery, allowing Chevron's discovery requests to proceed.

Insofar as the LAP Representatives seek a stay of discovery in this action pending the hearing and determination of their motion for such a stay, the application is denied.

Who won?

Chevron Corporation prevailed in this case because the court found no valid basis for staying the discovery process, allowing Chevron to continue its efforts to gather evidence for its claims.

Chevron has granted extensions of time with respect to several of the non-party witness subpoenas, many of whom are represented by the same counsel who appear here on behalf of the LAP Representatives and intervenor Donziger.

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