Chevron is asking a federal appeals court to throw out a $745 million jury verdict for coastline damage in Louisiana, claiming the case never belonged in state court in the first place.
The energy giant told a Fifth Circuit panel Wednesday that a recent Supreme Court decision proves lawsuits over decades of oil drilling destruction should be heard in federal court. Louisiana parishes say Chevron wrecked their coastline. Chevron says it was just following federal orders during World War II.
The World War II Defense
Chevron’s argument hinges on oil drilling its predecessor, the Texas Company, conducted under contract with the federal government to refine aviation fuel for the war effort. The company points to an April Supreme Court ruling in a related case from Plaquemines Parish—the same parish suing now—that found the Texas Company’s drilling activities were sufficiently tied to federal contracts to move the case out of state court.
Louisiana Solicitor General Benjamin Aguiñaga told the panel Chevron is comparing apples to oranges. In the Supreme Court case, he said, the federal government had designated the oilfield “a critical field essential to the war.” But Chevron hasn’t shown “a single drop of oil” from the field in this case went to making aviation fuel.
What’s at Stake for Coastal Communities
The $745 million verdict represents decades of alleged environmental destruction along Louisiana’s coastline. The state and its parishes claim oil drilling operations damaged fragile coastal ecosystems that protect communities from hurricanes and flooding. For Gulf Coast residents, those wetlands aren’t abstract—they’re the difference between storm surge stopping at the levee or flooding your living room.
Chevron’s strategy to move the case to federal court isn’t just procedural gamesmanship. Federal courts apply different standards and different juries. Companies often fare better before federal judges than state juries drawn from the communities where the damage occurred.
The Fifth Circuit panel will decide whether Chevron’s wartime contracts from eight decades ago give it an escape hatch from a state jury’s verdict. The company needs to prove the oil at issue actually served the federal government’s war needs—not just that somebody, somewhere was drilling for Uncle Sam.
Key Points
- Chevron appeals $745 million Louisiana jury verdict for decades of coastline damage from oil drilling
- Company argues Supreme Court ruling proves case belongs in federal court based on WWII-era contracts
- Louisiana says Chevron hasn’t proven oil from disputed field was actually used for war effort
https://www.courthousenews.com/chevron-tries-to-dodge-745-million-verdict-over-louisiana-coastline-damage/ – August 06, 2026
