Fifth Circuit Blocks State Court Proceedings in Chevron Coastal Damage Case
A federal appeals court has dealt a significant blow to Plaquemines Parish's $744.6 million coastal-damage verdict against Chevron, sending the case back to a federal judge and temporarily blocking state court proceedings.
The Fifth Circuit Court of Appeals vacated a federal district court's earlier decision to send the lawsuit back to state court, citing an April U.S. Supreme Court ruling that gave oil companies a significant victory in their effort to move some of Louisiana's coastal lawsuits into federal court.
The Supreme Court's decision effectively gave Chevron a second chance to argue its case in federal court, where it could potentially avoid paying the $744.6 million verdict. The Fifth Circuit blocked state court proceedings for 60 days unless the injunction is extended or lifted earlier.