Chevron seeks to shift $745 million Louisiana verdict to federal court

Chevron appeared before a Fifth Circuit panel to argue that a $745 million verdict against it for Louisiana coastline damage should be transferred to federal court, relying on a recent Supreme Court decision involving Plaquemines Parish. The oil company contended that the case relates to World War II drilling by its predecessor, the Texas Company, which had a wartime contract with the federal government, thereby meeting the federal-officer removal test.

Louisiana Solicitor General Benjamin Aguiñaga challenged the claim, noting the absence of evidence that any oil from the field in question was used for aviation fuel. The panel discussed whether Chevron had satisfied the “colorable federal defense” requirement and if participation in the state trial forfeited its jurisdictional argument. Judges Jennifer Walker Elrod, Andrew Oldham, and Edith Brown Clement considered remanding the matter to the lower federal court or vacating the prior remand order before the state court’s September 3 deadline. The hearing concluded without a ruling, leaving the jurisdictional dispute unresolved.