WASHINGTON — Energy companies scored a major legal victory Friday when the nation’s highest court unanimously decided their environmental damage cases should be heard in federal rather than state courts in Louisiana.
The procedural ruling allows oil and gas corporations to restart their legal battles in federal court after a Louisiana jury previously ordered Chevron to pay more than $740 million for coastal cleanup efforts. This represents just one of several similar legal challenges facing the industry.
The energy companies, supported by the previous Trump administration, contended these cases belonged in federal jurisdiction because their operations helped rapidly boost aviation fuel production for the U.S. military during World War II.
The Supreme Court accepted this argument. In an 8-0 decision authored by Justice Clarence Thomas, the court emphasized that Congress has historically permitted federal courts to handle lawsuits involving government contractors. Thomas explained that this particular case involves Chevron’s wartime contributions to increasing aviation fuel supplies.
According to U.S. Geological Survey data, Louisiana’s coastal regions have suffered the loss of over 2,000 square miles of land during the past 100 years, with oil and gas operations identified as a major contributing factor. State coastal protection officials project an additional 3,000 square miles could disappear in upcoming decades.
Interestingly, Republican Governor Jeff Landry supported these environmental lawsuits during his tenure as attorney general, despite his historical backing of the oil and gas sector. Legal representatives for Louisiana local officials claim the companies’ Supreme Court challenge was simply a delay strategy.
The corporations brought their appeal after Plaquemines Parish jurors determined that Texaco, which Chevron purchased in 2001, had spent decades breaking Louisiana’s coastal protection rules. The jury found the company failed to restore wetlands damaged by canal dredging, well drilling, and the disposal of billions of gallons of contaminated water into marshlands.
Friday’s Supreme Court decision reverses a 2024 ruling from the Fifth Circuit Court of Appeals that had kept the case in Louisiana state court.
Chevron praised the high court’s ruling, stating the allegations relate to work performed under federal oversight. “Chevron looks forward to litigating these cases in federal court, where they belong,” the company said in a statement.
The corporation disputes any responsibility for Louisiana’s land loss and maintains that legal action is inappropriate for activities that occurred before environmental regulations existed.
This case represents one among dozens of lawsuits filed in 2013 accusing major oil companies including Chevron and Exxon of violating state environmental laws for many years.
Justice Samuel Alito did not participate in the decision due to financial connections with ConocoPhillips. He has previously stepped aside from other cases because of his stock investments.
