The United States Supreme Court recently heard oral arguments in Chevron U.S.A., Inc. v. Plaquemines Parish, a case that could have wide-ranging implications, both for the dozens of lawsuits seeking billions in damages from oil companies for allegedly polluting Louisiana’s eroding coastline, and for the legal standards regarding removal to federal court in general.

As we previously reported, Plaquemines Parish has alleged that oil companies polluted a section of its coastal wetlands and contributed to Louisiana’s land loss crisis. Chevron argued that the cases should be heard in federal court because, during World War II, its subsidiary Texaco produced high-octane aviation fuel for the war effort.

Before the Supreme Court, Chevron argued that if the oil companies had been prevented from producing, that would have directly affected the government’s ability to obtain refined aviation fuel to fight the war effort, and because the crude oil pumped from Louisiana was of a type used to refine aviation fuel, the work was done in service of the federal contract even if the contract did not explicitly call for drilling in the marshes. Chevron also argued that cases of national importance should be argued at the federal level.

The attorney for the State of Louisiana argued that the primary issue is whether Chevron’s alleged contamination was done under the direction of the federal government. Because much of the crude oil it was producing at the time was for civilian use, the State argued, the industry would have polluted the marsh regardless of whether it was working for the federal government. And the State also pointed out that this matter involved state law claims and should accordingly be heard by experts at interpreting state law including, eventually (and if necessary), the Louisiana Supreme Court.

If the Supreme Court rules in favor of the oil companies, a federal judge could vacate the landmark $745 million jury verdict rendered after a three-week trial last year in Plaquemines Parish. The ruling could also set a precedent that large-scale environmental litigation belongs in federal court – not before local juries in state courts.

A ruling from the high court is expected by this summer.

Link to previous update: “Louisiana Takes Center Stage in Supreme Court Removal Dispute“