Boston, MA 05/23/2014 (wallstreetpr) – Chevron Corporation (NYSE:CVX)’s legal dispute with Ecuadorean villagers, involving Patton Boggs, has reportedly caused a delay in the merger of the Patton Boggs and Squire Sanders law firms.
The awaited merger of the Washington D.C. based law firm Patton Boggs LLP with the international firm Squire Sanders is now being questioned after the later voted for a suspension in the process on Thursday. The leadership at the firm Squire Sanders, which was anticipated to vote for the merger, instead bid a suspension on the issue on May 22.
The sudden decision was made after some Ecuadorean villagers filed a motion in a federal court of New York and condemned previous involvement of Patton Boggs in a dispute between Chevron and the group of villagers. The motion bid a judge to rethink the approval decision of May 7 which settled claims that the firm attempted to enforce a fraud $18 billion pollution decision against the oil company while representing the villagers.
As reported by Reuters, the merger depended on the settlement of the issue between Chevron Corporation (NYSE:CVX) and Patton Boggs. After Steven Donziger, the Ecuadoreans’ representative, claimed that Patton Boggs had unethically facilitated the merger, Squire Sanders feared that the condition was unfulfilled.
Patton Boggs Counters
The 300 lawyer firm, Patton Boggs, however, urged Judge Kaplan to disapprove Donziger’s protest to the settlement. It also refused to accept any ethical impropriety in giving up its Ecuadorean clients or from taking the case back. Partners of Patton Boggs had already voted on Tuesday, the results of which have not yet been declared. On the other hand, Chevron oil pollution lawsuit in the region is still generating hostility and confusion in legal circles in America.
As on Thursday, it was still uncertain when the voting will be resumed but Squire Sanders is expected to continue only after the Donziger motion has been disapproved.