PRINCIPLE

January 12, 2026

Supreme Court hears Chevron coastal damage case from Louisiana

State jury awarded $745M for coastal restoration; companies seek federal venue

The Supreme Court heard arguments on Jan. 13, 2026, in a Louisiana coastal damage case testing whether oil companies can remove state lawsuits to federal court. Plaquemines Parish and Cameron Parish won a $744.6 million jury verdict in April 2025 against Chevron, Texaco, and Exxon Mobil for damaging coastal wetlands. The companies argue their World War II-era federal contracts to produce aviation fuel give them the right to federal court jurisdiction, which is typically friendlier to oil companies. Louisiana officials and local communities say the cases involve pure questions of state law best decided by state courts. The jury found that oil and gas operations including dredging canals contributed to Louisiana's shoreline and wetland decline. Chevron and other companies fought back after the landmark ruling, seeking to move more than 40 pending similar lawsuits to federal court where they've had more success defeating environmental claims. The case centers on a 2011 amendment to the federal officer removal statute, which provides federal jurisdiction over actions against "any person acting under [an] officer" of the United States. The Supreme Court's ruling will determine whether decades-old federal contracts justify removing current environmental lawsuits from state court. Eight justices heard the case. The decision could reshape litigation over coastal restoration and climate accountability across the country.

The Supreme Court heard arguments on Jan. 13, 2026, in Chevron USA Inc. v. Plaquemines Parish, Louisiana. The case tests whether oil companies can remove state environmental lawsuits to federal court based on World War II-era federal contracts. Eight of nine justices heard the arguments. The decision will impact more than 40 pending coastal erosion cases in Louisiana.

A Plaquemines Parish jury awarded $744.6 million in damages in April 2025 after an 18-day trial. The jury found that Chevron, Texaco, and Exxon Mobil contributed to Louisiana's coastal wetlands decline through oil and gas operations including dredging canals. It's the largest jury award in Louisiana coastal litigation. The verdict came after years of legal battles over venue and jurisdiction.

The oil companies argue their World War II federal contracts to produce aviation fuel justify moving the case to federal court. Chevron says they acted as federal contractors providing energy security and national security services for decades. Companies claim these cases should be in federal court because of the federal officer removal statute, which provides federal jurisdiction over actions against 'any person acting under [an] officer' of the United States.

Louisiana officials argue the cases involve pure questions of state law about property damage and wetlands restoration. Louisiana Attorney General and local parish governments say the state has an interest in having its courts and ultimately its Supreme Court decide these matters. They contend decades-old federal contracts don't convert current environmental damage claims into federal cases.

The case centers on a 2011 amendment to the federal officer removal statute. The Supreme Court must decide whether a causal-nexus or contractual-direction test survives the amendment. It will also determine whether a federal contractor can remove to federal court when sued for oil production activities undertaken to fulfill a federal oil refinement contract from 80 years ago.

Federal court has typically been friendlier venue for oil companies defending environmental claims. Tommy Faucheux, president of Louisiana Mid-Continent Oil and Gas Association, argued companies should have federal court access because they've been 'part of the energy security and national security of this country.' State officials and environmental groups counter that oil companies are trying to escape accountability by forum shopping.

More than 40 similar coastal erosion lawsuits are pending in Louisiana courts. The Supreme Court's ruling will determine whether those cases stay in state court or move to federal jurisdiction. Louisiana has earned a reputation as one of the nation's 'Judicial Hellholes' according to tort reform advocates, who say politically influenced local courts manipulate the process. Environmental advocates say state juries are simply holding companies accountable for decades of documented damage.

📜Constitutional Law📌E6f0e3b8 2c96 4e3d 8e2c E3f50b8e3b8e✊Civil Rights

People, bills, and sources

What You Can Do

1

civic action

Contact House Judiciary Committee to demand hearings on corporate abuse of federal officer removal statute

The Judiciary Committee has oversight of federal courts and can investigate whether companies are exploiting the federal officer removal statute to escape state accountability.

judiciary.house.gov

Hi, I'm calling to demand hearings on corporate abuse of the federal officer removal statute.

Key points to mention:

  • Louisiana state jury awarded $745 million for coastal restoration
  • Chevron argues WWII fuel contracts justify federal jurisdiction decades later
  • Chief Justice Roberts questioned 'butterfly effect' logic
  • Over 40 Louisiana lawsuits affected if companies can escape to federal court

Questions to ask:

  • Will the committee investigate whether the federal officer removal statute needs reform?
  • Should companies be able to escape state environmental liability based on tangential federal contracts?
  • What oversight exists over federal courts taking jurisdiction from state courts?

Specific request: I want hearings on reforming federal officer removal to prevent corporate abuse of the statute to escape state environmental accountability.

Thank you.

2

civic action

Support Louisiana's coastal restoration funding through direct action

Louisiana parishes are using damage verdicts to fund wetland restoration. Citizens can support restoration projects directly or advocate for federal funding.

coastal@la.gov
coastal.la.gov

Subject: Support for Coastal Restoration Funding

Dear CPRA,

I'm writing to support Louisiana's coastal restoration efforts and the state's right to hold oil companies accountable for wetland damage.

Key facts:

  • Louisiana has lost 2,000 square miles of wetlands since 1932
  • Oil companies created 50,000 miles of canals causing saltwater intrusion
  • State jury awarded $745 million for restoration in Plaquemines Parish
  • Companies are trying to move cases to federal court to escape liability

Request: How can citizens support coastal restoration projects and advocate for adequate funding from companies that profited from resource extraction while externalizing environmental costs?

Sincerely, [Your name and contact information]