Ecuador asks that arbitration ruling be thrown out

[Judi Lynn]

Ecuador asks that arbitration ruling be thrown out
Fri Jul 9, 2010 5:15pm EDT

QUITO July 9 (Reuters) - Ecuador said on Friday it moved to nullify a March arbitration ruling by a panel of the Permanent Court of Arbitration in The Hague that ordered the country to pay $700 million to Chevron Corp (CVX.N).

In March, the U.S. oil giant won a three-year-old arbitration fight against Ecuador over a commercial dispute. Separately, the company is also battling an environmental claim in Ecuador seeking $27 billion in damages.

In March the arbitration panel ruled that Ecuador's courts violated international law by delaying rulings on commercial disputes between a subsidiary of the second-largest U.S. oil company and Ecuador's government.

The panel found Ecuador's courts breached a trade treaty between the South American country and the United States by not ruling on the cases.

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http://www.reuters.com/article/idUSN0916768920100709?rpc=401&feedType=RSS&feedName=rbssEnergyNews&rpc=401