The Supreme Court just delivered a major win for American energy companies, and it wasn’t even close.

In a unanimous 8-0 ruling on Friday, the justices sided with Chevron and other oil and gas companies in a closely watched case out of Louisiana. The decision effectively dismantles a $745 million jury verdict against Chevron and sends the case back to federal court.

Justice Clarence Thomas wrote the opinion for the court. And in a notable twist, Justice Samuel Alito sat the entire case out, recusing himself because he owns stock in ConocoPhillips, the parent company of one of the defendants.

Here’s the reaction:

The case, Chevron USA Inc. v. Plaquemines Parish, centered on whether lawsuits filed by Louisiana parishes against oil companies should be heard in state court or federal court. The companies argued they were acting as federal contractors during World War II, producing aviation gasoline for the U.S. military, and that should qualify them for federal jurisdiction.

The court agreed. Thomas wrote that the lawsuits are clearly connected to the companies’ wartime federal duties, and under the federal officer removal statute, that means federal court is the proper venue.

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ABC News had more on the ruling:

The unanimous procedural decision gives the companies a new day in federal court after a state jury ordered Chevron to pay upward of $740 million to clean up damage to the state’s coastline, one of multiple similar lawsuits.

Backed by the Trump administration, the companies argued the case belongs in federal court because they were working to quickly increase the supply of aviation gasoline for the U.S. government during World War II. The high court agreed.

The jury in Plaquemines Parish found that energy giant Texaco, acquired by Chevron in 2001, had for decades violated Louisiana regulations governing coastal resources by failing to restore wetlands impacted by dredging canals, drilling wells and billions of gallons of wastewater dumped into the marsh.

This is a big deal for the energy industry. The ruling doesn’t just affect this one case. It could redirect nearly a dozen similar environmental lawsuits across the country out of state courts and into federal ones, where oil companies historically fare better.

PBS News reported on the broader implications:

Louisiana’s coastal parishes have lost more than 2,000 square miles of land over the past century, with the U.S. Geological Survey identifying oil and gas infrastructure as a significant contributor. State officials warn of potential losses exceeding 3,000 additional square miles.

The companies denied responsibility for land loss and argued it was improper to sue them for activities conducted before state environmental regulations were in place.

As for Alito’s recusal, it wasn’t exactly a surprise. He stepped aside back in January after disclosing financial interests in ConocoPhillips. According to reports, Alito or his spouse owns stock in roughly two dozen companies, which has led to 64 recusals between 2021 and 2024, more than any other justice on the bench.

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Justice Ketanji Brown Jackson wrote a separate concurring opinion. She agreed the case belonged in federal court but applied stricter reasoning, requiring a more direct connection between the federal duties and the challenged conduct.

Conservative legal groups celebrated the decision. Carrie Severino, president of the Judicial Crisis Network, called it another failed attempt at “climate lawfare” by the left. The energy industry group Grow Louisiana said the ruling should spell the end of the litigation entirely.

This is a Guest Post from our friends over at WLTReport. View the original article here.
 

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