753 F. Supp. 2d 536
D. Maryland2010Background
- Chevron petitions under 28 U.S.C. § 1782 to obtain discovery from Daniel Rourke and Carlos Picone for use in foreign proceedings (Lago Agrio litigation and a United States–Ecuador arbitration).
- Petition includes Ex Parte Application, Ex Parte Notice for Judicial Notice, and Joint Sur-Reply; a hearing occurred on November 23, 2010.
- Discovery targets alleged reliance on the Cabrera damages report and asserts that Rourke and Picone prepared reports derived from or ghostwritten by others, tying opinions to fraud.
- Arbitral bodies under UNCITRAL rules are treated as foreign tribunals for § 1782 purposes, supporting applicability to the arbitration.
- The court analyzes the Intel discretionary factors (participant status, receptivity of the foreign tribunal, avoidance of foreign restrictions, and burden).
- The court grants Chevron’s § 1782 application to conduct discovery and refers the matter to the magistrate for discovery proceedings; ex parte judicial notice is granted; sur-reply is denied.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether arbitral proceedings qualify as foreign tribunals under §1782 | Arbitration qualifies as a foreign tribunal under UNCITRAL rules. | Not explicitly stated; concerns about receptivity and procedure are raised later. | Arbitral proceedings qualify as foreign tribunals; discovery permitted. |
| Whether the Intel discretionary factors favor granting §1782 discovery | Intel factors do not foreclose discovery and may weigh in Chevron's favor. | Factors could weigh against discovery due to burden and receptivity concerns. | Intel factors do not overwhelmingly tip against discovery; grant granted. |
| Whether Lago Agrio would be receptive to discovery | Ecuadorian court has indicated openness to discovery on damages and may review but still accept filings. | Respondents contend lack of receptivity and potential procedural obstacles. | Court finds potential receptivity and notes discovery may still be filed even if not evaluated by the court. |
| Whether the discovery request is unduly burdensome | Requests are tailored to verify reliance and provenance of expert work; not unduly burdensome. | Discovery is intrusive and burdensome, particularly for non-party experts. | Discovery not unduly burdensome under the circumstances. |
Key Cases Cited
- Intel Corp. v. Advanced Micro Devices, Inc., 542 U.S. 241 (U.S. 2004) (established the four discretionary factors for § 1782)
- In re Application of Chevron Corp., 709 F.Supp.2d 283 (S.D.N.Y.2010) (holds that international arbitral bodies under UNCITRAL rules constitute foreign tribunals for §1782)
