Chevron, Exxon Win Supreme Court Review in Coastal Case

The U.S. Supreme Court accepted an appeal from Chevron and Exxon Mobil and other energy companies to transfer their high-stakes coastal damage lawsuits from state courts to federal jurisdiction.

The legal dispute began when Louisiana's Plaquemines and Cameron parishes filed lawsuits against oil producers for environmental damage that occurred during multiple decades. The parishes maintain that the companies broke the Coastal Resources Management Act by causing marshland destruction through dredging and pipeline construction activities.

The companies maintain that their lawsuits pertain to wartime production under federal direction during World War II thus requiring federal court jurisdiction. The lower courts rejected their argument which led to the filing of an appeal.

A positive court decision would create substantial changes in the legal direction of more than 40 Louisiana parish cases that have been filed since 2013. A jury awarded Plaquemines Parish $744.6 million in damages against Chevron during the first trial.

Paul Clement who represents Chevron expressed his welcome of the Supreme Court's decision while feeling optimistic about the company's position. The court will begin hearing arguments during its upcoming term which starts in October.