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5th Circuit Opinion - Coastal Litigation

The US 5th Circuit rejected Big Oil's motion to remove environmental damages litigation from Louisiana state courts and into federal courts on Aug 10, 2020.

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Lamar White
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0% found this document useful (0 votes)
7K views8 pages

5th Circuit Opinion - Coastal Litigation

The US 5th Circuit rejected Big Oil's motion to remove environmental damages litigation from Louisiana state courts and into federal courts on Aug 10, 2020.

Uploaded by

Lamar White
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Case: 19-30492 Document: 00515521530 Page: 1 Date Filed: 08/10/2020

United States Court of Appeals


FIFTH CIRCUIT
OFFICE OF THE CLERK
LYLE W. CAYCE TEL. 504-310-7700
CLERK 600 S. MAESTRI PLACE,
Suite 115
NEW ORLEANS, LA 70130

August 10, 2020


MEMORANDUM TO COUNSEL OR PARTIES LISTED BELOW
Regarding: Fifth Circuit Statement on Petitions for Rehearing
or Rehearing En Banc
No. 19-30492 c/w 19-30829 Plaquemines Parish v. Riverwood
Production Co., Inc., et al
USDC No. 2:18-CV-5217
USDC No. 2:18-CV-677
---------------------------------------------
Enclosed is a copy of the court's decision. The court has entered
judgment under Fed. R. App. P. 36. (However, the opinion may yet
contain typographical or printing errors which are subject to
correction.)
Fed. R. App. P. 39 through 41, and 5TH Cir. R. 35, 39, and 41 govern
costs, rehearings, and mandates. 5TH Cir. R. 35 and 40 require you
to attach to your petition for panel rehearing or rehearing en
banc an unmarked copy of the court's opinion or order. Please
read carefully the Internal Operating Procedures (IOP's) following
Fed. R. App. P. 40 and 5TH Cir. R. 35 for a discussion of when a
rehearing may be appropriate, the legal standards applied and
sanctions which may be imposed if you make a nonmeritorious
petition for rehearing en banc.
Direct Criminal Appeals. 5TH Cir. R. 41 provides that a motion for
a stay of mandate under Fed. R. App. P. 41 will not be granted
simply upon request. The petition must set forth good cause for
a stay or clearly demonstrate that a substantial question will be
presented to the Supreme Court. Otherwise, this court may deny
the motion and issue the mandate immediately.
Pro Se Cases. If you were unsuccessful in the district court
and/or on appeal, and are considering filing a petition for
certiorari in the United States Supreme Court, you do not need to
file a motion for stay of mandate under Fed. R. App. P. 41. The
issuance of the mandate does not affect the time, or your right,
to file with the Supreme Court.
Court Appointed Counsel. Court appointed counsel is responsible
for filing petition(s) for rehearing(s) (panel and/or en banc) and
writ(s) of certiorari to the U.S. Supreme Court, unless relieved
of your obligation by court order. If it is your intention to
file a motion to withdraw as counsel, you should notify your client
promptly, and advise them of the time limits for filing for
rehearing and certiorari. Additionally, you MUST confirm that
this information was given to your client, within the body of your
motion to withdraw as counsel.
Case: 19-30492 Document: 00515521530 Page: 2 Date Filed: 08/10/2020

The judgment entered provides that appellants pay to appellees the


costs on appeal. A bill of cost form is available on the court's
website [Link].

Sincerely,
LYLE W. CAYCE, Clerk

By: _______________________
Nancy F. Dolly, Deputy Clerk
Enclosure(s)
Mr. George Arceneaux III
Ms. Kelly Brechtel Becker
Mr. James B. Canfield
Mr. Donald T. Carmouche
Ms. Jennifer Jo Clark
Mr. William Peter Connick Sr.
Mr. Brendan Jeremiah Crimmins
Ms. Michele Hale DeShazo
Mr. David Charles Frederick
Mr. Andre' Collins Gaudin
Mr. Matthew T. Heartney
Mr. Russell Keith Jarrett
Mr. Steven Beauregard Jones
Mr. Peter D. Keisler
Mrs. Deborah DeRoche Kuchler
Mr. Thomas Allen Lorenzen
Mr. Rocco F. Magni
Mr. Victor L. Marcello
Mr. Eric Julian Mayer
Mr. Robert Beattie McNeal
Ms. Nancy Gordon Milburn
Mr. Ryan C. Morris
Mr. Chad Ellis Mudd
Mr. Michael Raudon Phillips
Mr. Donald Wayne Price
Mr. Jeffrey Edward Richardson
Mr. Ryan Michael Seidemann
Mr. Martin A. Stern
Mr. Brandon J. Taylor
Mrs. Megan Kathleen Terrell
Ms. Alexandra Giselle White
Case: 19-30492 Document: 00515521520 Page: 1 Date Filed: 08/10/2020

United States Court of Appeals


for the Fifth Circuit
United States Court of Appeals
Fifth Circuit

FILED
August 10, 2020
No. 19-30492 Lyle W. Cayce
Clerk

The Parish of Plaquemines,

Plaintiff—Appellee,

The State of Louisiana, ex rel, Jeffrey Martin Landry,


Attorney General; The State of Louisiana, through
the Louisiana Department of Natural Resources Office
of Coastal Management and its Secretary, Thomas F.
Harris,

Intervenors—Appellees,

versus

Chevron USA, Incorporated, As Successor in Interest


to Chevron Oil Company and The California Company;
Exxon Mobil Corporation, As Successor in Interest to
Exxon Corporation and Humble Oil and Refining
Company; ConocoPhillips Company, As Successor in
Interest to General American Oil Company of Texas,

Defendants—Appellants,
__________________________________________________

Consolidated with 19-30829

Parish of Cameron,

Plaintiff—Appellee,
Case: 19-30492 Document: 00515521520 Page: 2 Date Filed: 08/10/2020

No. 19-30492 c/w


No. 19-30829

State of Louisiana, ex rel, Jeff Landry; State of


Louisiana, on behalf of Louisiana Department of
Natural Resources, on behalf of Office of Coastal
Management, on behalf of Thomas F. Harris,

Intervenors—Appellees,

versus

BP America Production Company; Chevron Pipe Line


Company; Chevron USA Holdings, Incorporated;
Chevron USA, Incorporated; Exxon Mobil Corporation;
Kerr-McGee Oil & Gas Onshore, L.P.; Shell Offshore,
Incorporated; Shell Oil Company; Swepi, L.P.; Texas
Company,

Defendants—Appellants.

Appeals from the United States District Court


for the Eastern and Western Districts of Louisiana
USDC No. 2:18-CV-5217
USDC No. 2:18-CV-677

Before Ho, Engelhardt, and Oldham, Circuit Judges.


James C. Ho, Circuit Judge:
Beginning in 2013, a group of Louisiana Parishes, supported by the
Louisiana Department of Natural Resources and the Louisiana Attorney
General as intervenors, filed suit in state court seeking relief from various oil
companies under the Louisiana State and Local Coastal Resources
Management Act of 1978 (SLCRMA). The Parishes alleged that the oil
companies were liable for acts they committed during World War II. Earlier
in the litigation, the companies tried to remove the cases to federal court, but
were rebuffed. After the parishes filed an expert report in one of the cases,
the companies tried again to remove to federal court, based on that report.

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No. 19-30492 c/w


No. 19-30829

Both the Eastern and Western Districts of Louisiana disagreed with


the companies and remanded the cases back to the state court. We conclude
that the information disclosed in the expert report did not provide new
information previously unavailable to the companies, warranting removal.
We accordingly affirm on timeliness grounds.
I.
Congress enacted the Coastal Zone Management Act of 1972, 86 Stat.
1280 (codified as amended at 16 U.S.C. §§ 1451–65), to encourage states to
manage their coasts through federally approved programs. 16 U.S.C.
§ 1452(2). Following that invitation, Louisiana enacted SLCRMA, La.
Stat. Ann. §§ 49:214.21–:214:42, in 1978. SLCRMA established a
permitting program for anyone wishing to start a “use” in Louisiana’s coastal
zone. La. Stat. Ann. § 49:214.30(A)(1). A “use” is an activity with “a
direct and significant impact on coastal waters.” La. Stat. Ann.
§ 49:214.23(13). Louisiana courts could impose civil liability and damages
and order environmental restoration measures for “uses conducted within
the coastal zone without a coastal use permit . . . or which are not in
accordance with the terms and conditions of a coastal use permit.” La.
Stat. Ann. § 49:214.34(E). However, SLCRMA’s grandfather clause
allows “uses legally commenced or established prior to the effective date of
the coastal use permit program” without requiring “a coastal use permit.”
La. Stat. Ann. § 49:214.34(C)(2).
The Parishes sued several oil companies that engaged in oil and gas
exploration, production, and transportation along Louisiana’s coast. Starting
in the 1940s—decades before SLCRMA took effect in 1980—the companies
drilled wells from barges and dredged and maintained networks of canals to
access those wells. According to the Parishes, the companies’ continued use
of those wells and canals violates SLCRMA, either because the companies

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No. 19-30829

lack a permit for that use, or because the companies’ use violates a permit.
Nor does the grandfather clause apply, say the Parishes, because any pre-
1980 “operations or activities” were not “‘lawfully commenced or
established’ prior to the implementation of” SLCRMA. Further, the
Parishes argue that the activities “were prohibited prior to 1978 by various
provisions of Louisiana Statewide Orders . . . various field wide orders, as
well as various orders of the Louisiana Stream Control Commission.”
The Parishes disclaim any “cause of action arising under federal law
or federal regulations.” So when the companies first tried to remove these
cases, the district courts remanded based on the absence of a federal question.
See, e.g., Parish of Cameron v. Auster Oil & Gas, Inc., 2018 WL 2144281, at *3
(W.D. La. May 9, 2018); Stutes v. Gulfport Energy Corp., 2017 WL 4286846,
at *15 (W.D. La. June 30, 2017), report and recommendation adopted, 2017 WL
4274353 (W.D. La. Sept. 26, 2017); Plaquemines Parish v. Rozel Operating Co.,
2015 WL 403791, at *5 (E.D. La. Jan. 29, 2015).
On April 30, 2018, Plaquemines Parish served their expert report, and
included a certification that it represented the Louisiana Department of
Natural Resources’ position in all forty-two cases (the “Rozel Report”). The
companies claim that the Rozel Report was their first notice that the Parishes’
claims relied, at least in part, on actions they took during World War II.
Based on that fact, the companies again sought to remove all forty-two
cases to federal court. The companies contend that the Rozel Report makes
clear for the first time that they are being sued for activities they took during
World War II while acting under the authority of a federal wartime agency,
namely, the Petroleum Administration for War—making the case removable
under the federal officer removal statute. 28 U.S.C. § 1442. The companies
also contend that the Rozel Report demonstrates that the Parishes’ claims
implicate federal question jurisdiction.

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No. 19-30829

The Parishes again moved to remand the cases. Both the Eastern and
Western Districts of Louisiana granted those motions and ordered the cases
be remanded back to state court.
II.
An order remanding a case to state court is “not generally
reviewable.” Latiolais v. Huntington Ingalls, Inc., 951 F.3d 286, 290 (5th Cir.
2020) (en banc). But an order remanding a case to state court after having
been removed under the auspice of § 1442 is reviewable “by appeal or
otherwise.” Id. (quoting 28 U.S.C. § 1447(d)). We review the remand order
de novo “without a thumb on the remand side of the scale.” Id. (quoting
Legendre v. Huntington Ingalls, Inc., 885 F.3d 398, 400 (5th Cir. 2018)).
In this case, the remand was appropriate because the companies filed
their notices of removal too late. Section 1446(b) provides two deadlines for
filing the notice of removal. The first requires defendants to file notices of
removal “within 30 days after the receipt by the defendant . . . of a copy of
the initial pleading setting forth the claim for relief upon which such action
or proceeding is based.” 28 U.S.C. § 1446(b)(1). That deadline applies if
the basis for federal jurisdiction is evident “on [the pleadings’] face.”
Chapman v. Powermatic, Inc., 969 F.2d 160, 163 (5th Cir. 1992); see Leffall v.
Dallas Indep. Sch. Dist., 28 F.3d 521, 525 (5th Cir. 1994) (same). But if the
basis of federal jurisdiction is not evident from the face of an initial pleading,
§ 1446(b)(3) allows a defendant to remove a case to federal court thirty days
after it receives “an amended pleading, motion, order, or other paper from
which it may first be ascertained that the case is one which is or has become
removable.” 28 U.S.C. § 1446(b)(3).
The parties agree that the companies’ second notice of removal is
untimely unless it was not evident on the face of the complaints that the case
included claims arising during World War II. The companies argue that

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neither the Parishes’ initial complaint, nor their broad discovery requests,
alerted them to the fact that the Parishes’ claims rested, at least in part, on
wartime activities. Instead, they contend, it was not until the Parishes
produced the Rozel Report that it became clear they were being sued for
wartime conduct.
We disagree. The Rozel Report simply repeated information from a
1980 Louisiana Coastal Resources Program Final Environmental Impact
Statement (FEIS) that the Parishes filed with the court before the
companies’ first removal attempt in 2013. The FEIS discusses many of the
specific wells involved in this litigation by referring to their unique serial
numbers. And those serial numbers refer to wells the companies drilled
before or during World War II. Accordingly, the Rozel Report is not a “paper
from which it may first be ascertained that the case is one which is or has
become removable.” 28 U.S.C. § 1446(b)(3) (emphasis added). See also
Chapman, 969 F.2d at 163 (same).
We affirm.

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