Writing in Bloomberg Businessweek, journalist Paul M Barrett says: ‘For a law firm of Patton Boggs’s heft, the settlement is highly unusual and possibly unprecedented. In nearly three decades of writing about the law business, I can’t think of a comparable retreat.’

Fabricated

Chevron had refused to pay the US$9.5b damages awarded in Ecuador - reduced from an original figure of US$19b - and had argued that Steven Donziger, co-counsel for the villagers alongside Patton Boggs, had fabricated evidence, coerced judges and otherwise distorted the legal process. Ecuadorian villagers had argued that Chevron had caused damage to their environment.

Factual findings

A recent judgement against Mr Donziger is cited by Patton Boggs as being important in its decision to settle. The firm said in a statement: ‘The recent opinion of the United States District Court for the Southern District of New York in the Chevron v. Donziger case includes a number of factual findings about matters which would have materially affected our firm’s decision to become involved and stay involved as counsel here. Based on the court’s findings, Patton Boggs regrets its involvement in this matter.’ Patton Boggs is trying to negotiate a merger with Squire Sanders - although it had hoped to conclude that by the end of April. Dentons has also expressed an interest in a merger with Patton Boggs. Source: Bloomberg