Unocal has been told it must itself find the money to pay for an out of
court settlement with alleged victims of human rights abuses on its
Yadana pipeline project in Burma.
The company agreed to make the payments last year, but had been suing its insurance
companies for refusing to cover the settlement. However, a Los Angeles
court has ruled that the insurers were not liable as Unocal was aware
of potential human rights violations being committed by the Burmese military in connection with the pipeline.
Earthrights International had represented the victims, who had claimed they were subject to forced labour and other abuses.
Earthrights believes companies should not be allowed to insure against human rights abuses.
