LLAW Statement in Response to Chevron v. Plaquemines SCOTUS Oral Arguments
On January 12, the U.S. Supreme Court heard oral arguments in Chevron USA Inc. v. Plaquemines Parish, Louisiana.
Louisiana Lawsuit Abuse Watch (LLAW) supports Chevron’s position that the original Plaquemines Parish v. Chevron case, and approximately a dozen cases like it, should remain in federal court under the Federal Officer Removal Statute and the principal that companies acting as agents of the federal government are entitled to a federal forum.
The operations in question were historically directed by and essential to the United States government, acting in partnership with Chevron’s predecessor, Texaco, for production of energy and fuel supplies necessary for national survival during World War II. To seek to retroactively punish a company for these activities decades later is legally inconsistent and could have a detrimental effect on national energy security.
This case opens the door to a patchwork of state court rulings subjecting a vital national industry to an environment of uncertainty and instability, disincentivizing long-term investment in Louisiana. The precedent-setting nuclear verdict® of $745 million handed down in this case by a Plaquemines Parish jury last year highlights the risks of allowing local venues to adjudicate matters of national policy. Without the oversight of a federal court, there is a significant risk that local financial interests will overshadow precedents regarding federal immunity and delegated authority.
Further, conflicting rulings in state courts would further complicate an already difficult legal environment. To underscore this point, Louisiana’s coastal lawsuits were recently ranked the No. 4 Judicial Hellhole® in the U.S. by the American Tort Reform Foundation.
What happens in this case will effectively determine the future of these lawsuits across Louisiana’s working coast, establishing legal precedents regarding federal resilience and delegated authority. Federal courts are undoubtedly the proper venue for matters concerning energy infrastructure and environmental standards of national significance. Unlike state-level courts, which often are inconsistent, federal courts are uniquely equipped to handle complex jurisdictional questions involving federal contracts and wartime production mandates.
LLAW supports Chevron’s effort to ensure this case is heard in the appropriate venue. A ruling in favor of the petitioners will uphold the integrity of the Federal Officer Removal Statute and ensure that those who serve the nation’s strategic interests are not unfairly targeted by localized litigation for actions taken at the behest of the federal government.
