US Supreme Court Hands Big Oil Major Win in Battle Over Destruction of Louisiana Coast
Allies of fossil fuel companies are celebrating the development as a step toward "stopping the endless wave" of lawsuits against the climate-wrecking industry.
US fossil fuel giants have long sought to shift litigation over industry harms from state to friendly federal courts, and the country's top court unanimously handed polluters a big win on Friday, allowing such a move in a case centered on environmental damage in coastal Louisiana.
Cases can be removed from state court when they are against federal officers or persons "acting under" them, "for or relating to any act under color of such office." Although the US Supreme Court has previously rejected multiple removals requested by Big Oil, the justices sided with the industry in Chevron USA v. Plaquemines Parish.
The company argued that its challenged production was sufficiently related to its contractual duties to refine crude oil into aviation gasoline, or avgas, for the US military during World War II. A federal district judge and the US Court of Appeals for the 5th Circuit rejected Chevron's argument, but the high court bought it.
"Chevron has plausibly alleged a close relationship between its challenged conduct and the performance of its federal duties—not a tenuous, remote, or peripheral one," Justice Clarence Thomas wrote for the majority. Justice Ketanji Brown Jackson penned a concurring opinion.
Justice Samuel Alito recused himself shortly before arguments. As with some other cases involving Big Oil, he bowed out due to his stock in ConocoPhillips, whose subsidiary Burlington Resources Oil and Gas Company is involved in the case at the district court level.
This fight before the high court stemmed from dozens of cases filed over a decade ago. As NOLA.com detailed Friday:
In 2013, a group of local parishes and the state filed 42 lawsuits against energy companies whose predecessors sought and produced crude during World War II. They argued that the oil and gas companies damaged wetlands and failed to get or comply with the proper permits.
After a three-week trial, a Plaquemines Parish jury sided with the state in one of those cases and awarded a $745 million verdict against Chevron and two other companies.
But the companies challenged the verdict, saying the lawsuit should have been heard in federal court, not state court.
Thanks to the Supreme Court, the Plaquemines Parish case may now be retried in a US district court. Company spokesperson Bill Turenne said in a statement that "Chevron looks forward to litigating these cases in federal court, where they belong."
There are also potential implications for other legal battles involving the industry that is fueling the global climate emergency—as American Energy Institute CEO Jason Isaac, a former Republican state representative in Texas, celebrated in a Friday statement. He described the decision as "a critical step toward restoring sanity to our legal system and stopping the endless wave of politically motivated lawsuits designed to punish the very industry that powers our economy and national security."
The Supreme Court's decision notably came as the justices prepare to hear ExxonMobil and Suncor's request to move a 2018 lawsuit filed by the city of Boulder, Colorado—seeking financial damages for the companies' role in creating the climate crisis—from state to federal court. Alito has not yet recused himself from that case.
Fossil fuel companies largely have support from the Republican Party, which controls the White House and both chambers of Congress. President Donald Trump returned to power last year with help from the industry's campaign cash, and his administration has supported the companies being challenged in Louisiana.
As The New York Times noted Friday, the local communities' lawsuits "have gained support from Louisiana Republican leaders, including those who have otherwise endorsed President Trump's 'energy dominance' agenda. Gov. Jeff Landry and Attorney General Liz Murrill, both Republicans, have supported the legal challenges."
However, ahead of the November midterm elections, Republicans in Congress are working on shielding oil and gas companies from what they call "abusive state climate lawsuits." As Common Dreams reported Friday, US Sen. Ted Cruz (R-Texas) and Congresswoman Harriet Hageman (R-Wyo.) introduced the Stop Climate Shakedowns Act this week.
"Big Oil companies have raked in massive profits at the pump while lying to the American people about the catastrophic harm of their products, and now they want to deny Americans their rightful day in court and stick taxpayers with the bill for the mess they made," said Center for Climate Integrity president Richard Wiles. "If fossil fuel companies have done nothing wrong, why do they need immunity?"
There are related legislative efforts at the state level. As the Times detailed earlier this month, Utah recently "became the first state to enact a law that shields companies from climate-related claims." Tennessee swiftly followed suit, and Republican lawmakers in states including Iowa, Louisiana, and Oklahoma are working on similar legislation.
Cassidy DiPaola, communications director for the Make Polluters Pay campaign, warned earlier this year that "a federal liability shield for fossil fuel companies would not lower energy prices or ease the cost of living. It would simply shift more of the financial burden onto working families and local governments while insulating one of the most profitable industries in history from accountability."
"Congress should not close the courthouse doors to communities seeking redress," said DiPaola. "Big Oil is not entitled to special immunity from the consequences of its conduct."
This article has been updated to include developments with state legislation and Common Dreams' reporting on a bill that would shield the fossil fuel industry from liability.
(Image: Big Oil's Deceptive Climate Ads)