Pitfalls and Pipelines - Philippine Indigenous Peoples Links

Chapter 2.6: Legal Strategy from the Local to the International
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to deliver these benefits. Another court case in 2000 also failed
to stop the mine from polluting the river. Mr Kirsch argued
that to protect indigenous peoples’ interests, unambiguous
language was necessary in court rulings and settlement agreements
together with strong enforcement mechanisms. It was
also evident from the history of the OK Tedi case that pursuing
legal avenues can be very slow and time consuming. 33
In Ecuador, a historic class action lawsuit against Chevron
oil company found favorably for thousands of victims who,
18 years after the trial, should be compensated for damages
resulting from the contamination of water by the company,
which was fined $9.5 billion. Nevertheless the challenges that
lie ahead for the implementation of this decision are numerous,
especially as the Hague’s Permanent Court of Arbitration
has become involved. 34
Finally, although the focus has been on cases brought
against companies, it should be mentioned that increasingly
mining companies can take host governments to court or arbitration
if they feel they have been wronged. This can have
negative consequences for local communities. In El Salvador,
Canadian mining company Pacific Rim has been using the
investor-state provision of the Central American Free Trade
Agreement (CAFTA) since 2009 to seek $100 million in damages
from the government for failing to approve an environmental
license. Although El Salvador won the main points on
the initial case, the case continues on other grounds and the
government cannot reclaim its $5 million legal fees. 35 In one
of the most egregious cases, US company Doe Run has filed an
$800 million suit under the US-Peru Free Trade Agreement
against the Peruvian government, alleging that it failed to
clean up the town of La Oroya where the company operates
a 100 year-old lead smelter. The town is one of the most polluted
in the world. The Peruvian government and local civil
society organizations argue that Doe Run failed to comply
with its environmental clean-up commitments. In 2011 the
controlling investment company of Doe Run, Renco Group,
filed for international arbitration under the terms of Peru’s
Free Trade Agreement. 36