ExxonMobil Vs Indonesian villagers: US oil major resolves torture case but keeps terms confidential

Exxon Mobil Corp on Monday settled a long-running human rights lawsuit with Indonesian villagers who accused an Indonesia soldier hired as guard by the Houston-based oil and gas company of committing murder and torture.

The Exxon case was set for a jury trial in Washington starting May 24 but that no more remains the case.

Exxon Mobil Corp Vs. Indonesian villagers: The resolution

According to a federal court filing in Washington DC, the two sides have resolved the contentious case which first came to the fore in 2001. 

Agnieszka Fryszman, a lawyer for the Indonesian villagers at law firm Cohen Milstein Sellers & Toll, told Reuters that the terms for resolution are confidential.

A spokesperson for Exxon Mobil further told Reuters that the settlement “brings closure for all parties.”

The lawsuit led to the abrupt 2021 resignation of Alex Oh as the US Securities and Exchange Commission’s enforcement director, after a U.S. judge raised concerns about Oh’s conduct while representing Exxon at law firm Paul, Weiss, Rifkind, Wharton & Garrison.

What was the case about?

The case accused the company of negligence in contracting with Indonesian soldiers to guard its operations in the country’s Aceh territory during a period of violence and unrest.

The lawsuit also sought to hold Exxon accountable for alleged atrocities committed by the soldiers.

The alleged abuses took place at a time when the Indonesian military had deployed thousands of troops in the province to crush a long-running rebellion by pro-independence fighters. A peace agreement came only after the Indian Ocean tsunami of 2004 killed at least 170,000 people in Aceh, on the northern tip of Sumatra island.

Fryszman said the plaintiffs, 11 villagers who were not named in court filings, broke down in tears at news of the settlement.

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“They have been fighting this case for 20 years against one of the world’s most powerful corporations,” Fryszman was quoted as saying by Reuters.

Exxon argued in court filings that there were insufficient links between the company and wrongdoing committed by Indonesian soldiers. This argument was rejected by the US District Judge Royce Lamberth.

Lamberth last year ordered Exxon to pay about $289,000 in sanctions after finding that Oh, while a partner at Paul Weiss, improperly accused opposing counsel of acting “unhinged” during a deposition.

(With inputs from agencies)

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