The U.S. Supreme Court has agreed to hear a case involving major oil companies like Chevron and Exxon Mobil. These companies are trying to move lawsuits filed by two Louisiana parishes, Plaquemines and Cameron, from state court to federal court. The parishes claim that the companies have damaged Louisiana’s coast over many years due to their oil production activities.
The Supreme Court’s decision comes after a lower court ruled that the lawsuits should remain in state court. The oil companies argue that these cases are related to federal contracts they had during World War II, which involved producing oil for the U.S. government. They believe federal court would be a more favorable setting for their defense.
The justices will hear the case in their next term starting in October. Paul Clement, a lawyer for Chevron, expressed satisfaction with the Court’s decision to take on the case, highlighting the importance of the issue.
The lawsuits began in 2013 when six coastal parishes filed a total of 42 lawsuits against the oil companies. They accuse these companies of violating Louisiana’s Coastal Resources Management Act, claiming that their activities, such as dredging and building pipelines, have caused significant harm to the coastal marshlands. The parishes are seeking billions of dollars to restore the land and protect against erosion.
In April, a jury ruled that Chevron must pay Plaquemines Parish $744.6 million, emphasizing the high stakes involved. The companies have consistently argued that the state court is biased against them, pointing to the jury’s verdict as a reason to move the cases to federal court.
The latest appeal is based on a federal law that allows federal contractors facing lawsuits in state court to transfer those cases to federal court. However, the 5th U.S. Circuit Court of Appeals upheld lower court decisions that kept the cases in state court, stating that the oil production activities were not directly related to the companies’ federal contracts.
As the Supreme Court prepares to hear this case, it could have significant implications for both the oil companies and the coastal communities seeking to hold them accountable for environmental damage.