The recent decision issued by the U.S. Fifth Circuit Court of Appeals in favor of oil and gas defendants fighting unfounded coastal lawsuits is encouraging, as it opens the door for these cases to be heard in federal court. That’s where they should be.
The lawsuits brought by state and local government plaintiffs against hundreds of energy producers challenge thousands of federally authorized exploration and production activities conducted throughout Louisiana’s coast over the last century. The cases, initially filed in state district court, have been focused on jurisdictional battles since 2013. It appears the federal courts are getting closer to resolving the venue question once and for all—and that’s a small step in the right direction.
Louisiana Lawsuit Abuse Watch has long opposed these lawsuits; they are a prime example of the abuses that continue to cost the State of Louisiana and its taxpayers. A 2021 study conducted for Citizens Against Lawsuit Abuse shows the impact of Louisiana’s civil justice system cost the state $3.87 billion in lost economic activity, 22,550 in job losses and amounted to $1.12 billion in lost wages for hardworking Louisianans. This translates to an annual hidden “tort tax” of $451 currently being paid by every single Louisiana resident. Louisiana is also a staple on the American Tort Reform Foundation’s annual Judicial Hellholes report, earning the designation as the fifth-worst legal climate in the U.S. last year.
While parishes continue to expend taxpayer resources on these baseless lawsuits, energy companies are looking outside Louisiana for investment opportunities. That means our local and state coffers will continue to lose tax dollars and our citizens will continue to lose jobs. All of this has an impact on our reputation for being one of the most litigious states in the country – and one of the worst for doing business. Who are the real winners here?