
In a recent ruling, the Supreme Court handed the oil and gas industry a significant procedural win in a decade-long legal fight over Louisiana’s eroding coastline. The decision changes where some of the cases will be heard, but it does not resolve the larger legal and policy problems at the heart of the litigation.
Beginning in 2013, a group of Louisiana parishes led by Plaquemines Parish filed 42 lawsuits in state court against oil and gas companies under Louisiana’s 1978 State and Local Coastal Resources Management Act. The suits targeted oil-and-gas operations dating back to World War II and continuing for decades, alleging that companies violated Louisiana coastal law and that practices such as canal dredging and the use of earthen pits caused long-term damage to the state’s wetlands. One case reached trial, resulting in a $745 million jury verdict against Chevron and two other companies. Any damages recovered would go into a fund for coastal restoration, according to attorneys for the parishes.
The Supreme Court’s decision did not address whether the companies caused coastal damages. Instead, it addresses the narrower question of whether that issue should be decided in state or federal court.
Chevron argued that its predecessor held a federal contract during World War II to refine crude oil into aviation gasoline for the military, and that its Louisiana crude oil production during that same period was closely connected to that federal work. The Court ruled 8-0 in Chevron’s favor, allowing the case to proceed in federal court. Justice Alito did not participate because of a financial interest in one of the defendants.
The Court decided only part of the jurisdiction question and left other issues unresolved, so the Fifth Circuit will now decide what happens next. According to the parishes’ attorney, the decision directly affects 11 of the 42 cases, while the other 31 remain in state court. More broadly, the ruling could make it easier for federal contractors to move similar cases into federal court.
Whichever court ultimately hears these cases, the fundamental problems with this retroactive litigation remain. I examined them in depth in an earlier piece, but they are worth revisiting here.
>>>READ: Louisiana’s Coastal Crisis Won’t Be Solved in Court
Louisiana’s land loss has many overlapping causes, including reduced sediment from the Mississippi River, natural subsidence, sea level rise, hurricanes, and the levee system that disconnected the river from its delta. One scientific review concluded that it is probably impossible to assign precise weight to each contributing factor, making it difficult to attribute a specific share of damage to a single company in a specific place.
The lawsuits also apply modern regulatory expectations to conduct from 50 to 80 years ago, before Louisiana had any coastal permitting system, even though the state benefited from the tax revenue generated by that activity for decades. The risk is that these lawsuits will discourage future oil and gas activity and reduce the economic benefits that industry provides to Louisianians.
These consequences are not theoretical. Research from the Pelican Institute suggests that Louisiana’s GDP share declined, drilling in state waters fell, and energy employment dropped since the lawsuits began. Meanwhile, Louisiana already has a more credible path forward in its science-based Coastal Master Plan, developed through nearly two decades of bipartisan work and updated every six years. Retroactive litigation is a flawed way to address a problem this complex.










