The wall starts tumbling down. Sad news about a powerful lobbying firm beset with strife.Chevron and Patton Boggs have settled disputes linked to long-running litigation over toxic drilling waste pits in Ecuador, with Patton Boggs agreeing to pay Chevron $15 million, issue a statement of regret and withdraw from the Ecuador case. Chevron agreed to release all claims against Patton Boggs and its partners.
The settlement is a stunning and highly unusual setback for any law firm, let alone the nation's leading lobbying firm, long a bedrock of the Washington establishment. While the payment will cover only a tiny portion of the money Chevron has spent on the legal battle, the settlement overall tarnishes the reputation of Patton Boggs.
Yet the settlement, which a senior official at the firm said would be entirely covered by Patton Boggs's insurance policy, also removes a threat to the health of the firm. Patton Boggs had already been struggling with financial pressures common to the legal industry and has recently been exploring possible mergers in a bid to restore its stability.
The real problem with the settlement is that all the information that Patton Boggs could have been forced to disclose in depositions, interrogatories and in court is now sealed. $15 million is cheap compared to the hit they would have taken if all that bad news had come out.