Chevron USA Inc. v. Plaquemines Parish | Oral Argument Date: 1/12/26 | Docket Link: Here

Question Presented: Whether a causal-nexus or contractual-direction test survives the 2011 amendment to the federal-officer removal statute

Overview: Oil companies that fueled WWII fighter planes face $744.6 million in state court verdicts for 80-year-old production methods, creating unprecedented federal contractor liability exposure with massive removal jurisdiction implications.

Posture: Fifth Circuit denied en banc rehearing by narrow 7-6 vote after split panel affirmed remand.

Main Arguments:

• Chevron (Petitioner): (1) 2011 amendment eliminated causal-nexus requirement through "relating to" language expansion; (2) Fifth Circuit improperly reinstated contractual-direction test rejected by other circuits; (3) Oil production activities directly connected to federal avgas contracts through pricing terms and wartime regulations

• Louisiana (Respondent): (1) No genuine circuit split exists among courts applying "connection or association" standard; (2) Case lacks national importance beyond fact-specific contractor disputes; (3) Federal contracts remained silent about production methods, requiring sufficient connection between challenged conduct and federal directives

Implications: Chevron victory expands federal contractor protection from state court liability for activities connected to federal work, potentially encouraging emergency contracting. Louisiana victory maintains state environmental enforcement authority while exposing federal contractors to massive local jury verdicts for wartime activities.

The Fine Print:

• 28 U.S.C. § 1442(a)(1): "A civil action...commenced in a State court against...any officer (or any person acting under that officer) of the United States...for or relating to any act under color of such office...may be removed"

• State and Local Coastal Resources Management Act: Requires compliance with environmental standards for oil and gas operations in Louisiana coastal zone

Primary Cases:

• Latiolais v. Huntington Ingalls, Inc. (5th Cir. 2020): Post-2011 amendment abandoned "causal nexus" test, replacing with "connected or associated with" standard demonstrating expanded federal-officer removal scope

• Watson v. Philip Morris Cos. (4th Cir. 2007): Federal contractor removal permitted without explicit contractual direction for challenged conduct, supporting broad interpretation of "relating to" language