A federal appeals court ruling this month has buoyed Louisiana oil companies’ hopes that coastal erosion lawsuits brought by parish governments might be tried in federal rather than state courts.
The Fifth Circuit Court of Appeals’ Aug. 5 opinion could lead at least some of the parishes’ cases to be heard in federal court. The plaintiffs in the litigation dating back to 2013 allege that energy companies operating in the state had violated Louisiana’s State and Local Coastal Resources Management Act of 1978, causing extensive coastal degradation.
But the Fifth Circuit opinion concludes that the lead cases involving the parishes of Cameron and Plaquemines could hinge on federal issues.
“We conclude that because an expert report filed by the parishes revealed a new theory of liability for the first time, the companies’ removal based on federal-officer jurisdiction was timely,” the appeals court’s opinion states.
The appeals court moved to send the two cases back to federal district courts to evaluate the contention that the oil firms’ activities predated the 1978 law and were subject to federal direction.
“We welcome today’s ruling, which concludes removal was timely and remands these cases to federal district court for further consideration,” Melissa Landry, a spokeswoman for several of the energy companies, told the Louisiana Record in an email. “The activities at issue were legally conducted and actively encouraged at every level of government, and they delivered tremendous economic benefits to federal, state and local governments and communities.”
The parish lawsuits represent a baseless attempt to make the industry liable for permitted activities in the past, Landry said.
Louisiana Oil & Gas Association President Mike Moncla also applauded the appeals court’s decision.
“Today's ruling makes it very clear how the Fifth Circuit views the arguments made by the plaintiff’s legal representation,” Moncla said in a prepared statement. “The ruling partially overturns a decision given by the Fifth Circuit in 2020 that would have sent the lawsuits back to state court.”
He also noted that Louisiana’s energy industry has seen its fortunes diminished since the coastal litigation process began.
“These frivolous lawsuits have hurt jobs, bankrupted marine service companies and operators, and have decimated the state’s tax revenue it receives from energy production,” he said.