A federal appeals court has rebuffed Louisiana energy companies’ efforts to move two parish lawsuits blaming the industry for coastal erosion from state to federal courts.
The U.S. Court of Appeals for the Fifth Circuit earlier this month affirmed district court rulings to keep the cases in state court. Plaintiffs in the cases, which could potentially force the companies to pay out billions of dollars to address coastal erosion and wetlands destruction in the state, view the appeals court ruling as a big win for their side.
“We are exploring all options,” Melissa Landry, speaking on behalf of the major energy companies in the state, told the Louisiana Record.
The companies’ next legal steps will take some time to hash out, Landry said.
“Today’s ruling does nothing to strengthen the factually and legally meritless claims at issue in this litigation,” Landry said in a prepared statement. “In whichever forum these cases are ultimately considered, these flawed legal attacks do not advance meaningful solutions to restore our coast.”
The Fifth Circuit found that a report filed by one of the coastal erosion cases was not a basis to remand such cases to federal court. The energy companies, however, noted that the report relied on actions taken during World War II, when companies were working under the authority of a federal wartime agency.
“It is our position that the core of activities being challenged were regulated and/or authorized by the federal government, and so we would conclude that the federal courts are the proper place to litigate the case,” Landry told the Record.
The appeals court, however, disagreed.
“Both the Eastern and Western Districts of Louisiana disagreed with the companies and remanded the cases back to the state court,” the appeals court said in its decision. “We conclude that the information disclosed in the expert report did not provide new information previously unavailable to the companies, warranting removal.”
The leaders of the Louisiana Oil and Gas Association and the Louisiana Mid-Continent Oil and Gas Association downplayed the impact of the court ruling in a joint statement.
“To be clear, the Fifth Circuit’s decision … has no bearing on the facts of the case nor the merits of the issues raised by the defendants in the litigation,” the statement by LOGA President Gifford Briggs and LMOGA’s interim president, Lori Leblanc, said. “Whether these cases move forward in federal court or state court, we will continue to defend against the meritless cases and show why the lawsuits do nothing for Louisiana’s coast.”
Landry said the parish lawsuits are counterproductive to efforts to restore wetlands and build a stronger economy.
“These divisive lawsuits seek to rewrite history and undermine the efforts of hardworking men and women who help power our communities, support our economies, and drive investments in conservation and restoration projects across Louisiana’s working coast,” she said.