Supreme Court hands win to Chevron, Big Oil in environmental damage case
Reuters
Reuters· 2 min read
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🗞️ Driving the news: The Supreme Court of the United States ruled in favor of Chevron, allowing the oil major to move an environmental damage lawsuit from Louisiana state court to federal court, a decision that could affect several similar cases against the oil and gas industry
• According to the U.S. Geological Survey, Louisiana lost about 2,000 square miles of coastal land between 1932 and 2016, one of the fastest rates of coastal wetland loss in the world
🔭 The context: The case stems from allegations by Plaquemines Parish in Louisiana that oil companies caused decades of environmental damage to coastal wetlands through drilling, pipelines and canal dredging
• A Louisiana jury previously ordered Chevron to pay $745 million in damages to help restore the damaged wetlands
• However, the Supreme Court ruled the company may contest the claims in federal court, citing arguments that the activities were tied to wartime fuel production carried out under U.S. government supervision during World War II
🌍 Why it matters for the planet: The decision could reshape how environmental liability cases against fossil-fuel companies are handled in the United States
• If more cases move to federal courts, it may become more difficult for local communities to secure damages for environmental restoration, potentially affecting efforts to repair ecosystems degraded by decades of energy extraction
⏭️ What’s next: The Louisiana case will now proceed in federal court, where the previous damages ruling could be reconsidered
• Meanwhile, other oil companies facing similar lawsuits may seek to use the Supreme Court’s ruling to shift their cases out of state courts
📈 One stat: Louisiana’s coastline has disappeared at times at a rate equivalent to one football field of wetlands every 34 minutes, according to federal research
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