As government privatization efforts grow, lawsuits against federal contractors get more difficult

The question of which court should hear a case isn’t always as easy as it might seem – and the answer can sometimes make a difference in the potential outcome. For instance, in 2013, the government of Plaquemines Parish, Louisiana, decided to sue several oil companies for violating a 1978 state law that required a state permit for oil production along the Louisiana coast. Some of that oil production activity dated back even further, to World War II. The oil companies, led by Chevron, fought the lawsuit in part by saying they were under a federal contract and following federal directives to boost oil production to support the war effort. The case made its way to the Supreme Court over a question that was not about the substance of the case – whether the companies had or had not violated the state law – but rather whether the dispute should be heard in a Louisiana state court, or whether it should be heard in federal court. On April 17, 2026, the Supreme Court issued a unanimous decision making it easier for companies to move cases from state to federal courts. The ruling is likely to make it harder for the…

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