Supreme Court backs Chevron in environmental damage lawsuit

The Supreme Court on Friday unanimously backed Chevron, allowing it to move a major environmental lawsuit from state to federal court. 

The decision could shape outcomes in nearly a dozen similar cases targeting the oil and gas industry.

Chevron argued its predecessors ramped up oil production during World War II to support US military needs, especially aviation fuel. 

The court agreed that actions tied to federal wartime directives fall under federal jurisdiction. Justice Clarence Thomas wrote that companies acted under urgent national demands to boost avgas supply. Avgas is a type of aviation fuel used in aircraft.

The ruling also casts doubt on a $745 million state court judgment against Chevron intended to fund restoration of damaged areas. Moving the case to federal court could change legal standards, liability, and potential penalties.

Experts say the decision strengthens the federal officer defense, which companies use to argue they acted under government direction. This may give energy firms a stronger footing in climate and environmental lawsuits nationwide.