The U.S. Supreme Court ruled unanimously on Friday that lawsuits against oil companies, including Chevron and Exxon Mobil, for environmental damage in Louisiana should be heard in federal court rather than state courts.
Key Takeaways
The U.S. Supreme Court ruled unanimously that lawsuits against oil companies for Louisiana coastal damage should be heard in federal court instead of state courts. The decision affects dozens of cases filed by Louisiana parishes seeking billions in damages from Chevron and other energy companies.
- Supreme Court rules 8-0 to move Louisiana oil lawsuits to federal court
- Decision impacts 42 lawsuits filed since 2013 over coastal damage claims
- Chevron ordered to pay $744.6 million by state jury in one case
- Companies argue cases relate to wartime contracts with the U.S. government
According to multiple reports, the decision affects 42 lawsuits filed by several Louisiana coastal parishes and the state's attorney general seeking billions of dollars from energy companies. The cases allege violations of Louisiana's State and Local Coastal Resources Management Act, which requires companies to obtain necessary permits for their activities in coastal areas.
The ruling centers on one case brought by Plaquemines and Cameron parishes but is expected to impact the remaining lawsuits filed in 2013. The oil companies had argued that the cases should be heard in federal court because their activities were related to fulfilling U.S. government refinery contracts during World War II.
Writing for the majority, Justice Clarence Thomas agreed with Chevron's argument, stating that the company's production of crude oil during World War II was related to its wartime aviation-gasoline refining for the military. The ruling reversed a 2024 decision by a panel of the New Orleans-based Fifth U.S. Circuit Court of Appeals.
Louisiana Attorney General Liz Murrill expressed confidence that the outcome would be the same in federal court, despite the change in venue. Justice Samuel Alito recused himself from the case due to his stock holdings in ConocoPhillips, one of the defendants.
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