Pelican Institute Issues Statement in Response to Oral Arguments in Chevron v. Plaquemines
FOR IMMEDIATE RELEASE
Media Contact: sydney@pelicaninstitute.org
January 12, 2026
Washington, D.C.— Earlier today, the United States Supreme Court heard oral arguments in Chevron v. Plaquemines, a critical case arising from dozens of lawsuits filed by private trial lawyers on behalf of Louisiana coastal parishes against energy companies. The suits seek massive damages for alleged coastal erosion tied in part to oil and gas activities dating back to the 1940s and World War II, when companies operated under federal direction to support the Allied war effort.
The Supreme Court’s decision in Chevron v. Plaquemines will determine whether this case and similar claims should be heard in federal or state court.
“Today’s arguments make it clear that these cases belong in federal court,” said Daniel Erspamer, CEO of the Pelican Institute for Public Policy. “As the Assistant U.S. Solicitor General noted on behalf of the federal government, the novel reasoning that was applied in the Fifth Circuit’s ruling to keep the cases in state court is deeply unworkable and problematic. Now the Supreme Court has an opportunity to right that wrong, uphold the rule of law, provide much-needed clarity for courts across the country regarding the proper application of the federal officer removal statute, and ensure that cases such as this are heard in neutral federal courts.”
BACKGROUND
Since 2013, trial lawyers working on behalf of local parishes have filed dozens of civil lawsuits in state courts seeking damages from oil companies for coastal erosion they claim was caused in part by wartime production activities. From the outset, oil companies invoked their right to remove these cases to federal court.
Despite longstanding federal law designed to ensure such cases are heard in neutral federal courts, plaintiffs have kept the litigation in state courts by advancing novel legal theories. One case has already resulted in a $745 million verdict, with more than 40 additional cases pending.
As detailed in a recent Wall Street Journal column, the litigation has created deep legal uncertainty, driven investment out of Louisiana, and raised serious questions about impartiality, federal jurisdiction, and the rule of law.
An 2025 economic impact analysis on the coastal lawsuits published by the Pelican Institute estimates that since 2009, Louisiana’s offshore reserves declined 42% and production dropped 56%, while federal offshore output grew over the same time period. Energy sector employment has fallen by 37%, and since 2014, the state has lost $1.1 billion in wages and $70 million in foregone tax revenue.
The Pelican Institute has additional resources available:
Fact Sheet: Lawsuits Continue to Undermine Louisiana’s Economy
Articles & Commentary: Advocates warn Louisiana’s coastal lawsuits are costing billions; Supreme Court has a chance to deliver victory for American energy workers
Video: Daniel Erspamer Interview with Kevin Cirilli
For more information about the coastal lawsuits or to arrange an interview, contact Sydney Petite at (504) 717-1606 or sydney@pelicaninstitute.org.
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The Pelican Institute for Public Policy is a non-profit, non-partisan research institute whose mission is to research and develop policy solutions that advance individual liberty, free enterprise, and opportunity for all Louisianans. Founded in 2008, the Pelican Institute believes every Louisianan should have the opportunity to flourish in communities where good opportunities abound and economic prosperity is achievable through hard work and ingenuity. In this capacity, Pelican has conducted extensive research on Louisiana’s coastal litigation. Learn more about Pelican at pelicanpolicy.org.
