La. Committing Economic Suicide, Attacks Its Energy Industry

Activist judiciary deserves the criticism it frequently gets. 

But so do elected officials who pass laws encouraging that activism.

In this regard, Louisiana is a prime culprit.

Louisiana may be committing economic suicide since a fourth of its economy is based on oil and gas.

Yet state leaders, including Republicans as well as Democrats, have launched an all-out legal blitz to make that industry pay for environmental damages that reportedly happened during the 1940s.

Mega-billions are involved.

One recent study ranked Louisiana as having more public corruption than any other state. By bringing these actions in state courts, Louisiana officials (including elected judges) have reaped millions in campaign contributions from the private attorneys hired by government to file the lawsuits — attorneys who then collect a percentage for themselves.

So far the state courts have issued one $740-million verdict and dozens more cases are awaiting trial.

The U.S. Supreme Court will soon decide whether those lawsuits must be moved out of state courts and into federal court, where the defendants believe they will receive fairer treatment. Oral arguments were held in January.

Technically, the cases revolve around the companies' argument that they were producing fuel for the American military during World War II, entitling them to apply federal law requiring that related lawsuits must be shifted into federal courts.

But more relevant to many Americans is the notion that today’s courts are being asked to award damages for what happened during the 1940s.

Louisiana Democrats enacted a special law in 1978 to justify claims that its coastline was severely eroded by industry practices during that war.

Whether or not coastlines were damaged during the 1940s, such laws beg the question of how far back America wants its courts and politicians to go to satisfy the social justice movements of the American left.

If we go back to the 1940s, why not even farther in the movement for reparations for slavery? And if only environmental damage counts, should we consider claims that 250 years ago the brand-new American Army de-forested over 127,000 trees at Valley Forge alone, caused over 660,000 lead musket balls to pollute the site of the Battle of Saratoga, and otherwise harmed the environment?

Public officials should not be allowed to wipe their hands clean of responsibility for enabling and encouraging courts to provide government with billions of dollars, with companies passing along the costs to consumers via higher prices, all based on old, old claims.

That practice is not labeled as tax increases, but officials bear the same blame as if they had raised taxes by billions.

Unfortunately the case before the U.S. Supreme Court will not be decided by that standard. The court is not being asked to decide the limits for dredging up claims that are 75-plus years old.

The only question involves moving these cases into federal courts, away from state courts such as Louisiana's.

January's oral arguments provided few clues of how the U.S. Supreme Court will rule on this matter, known as Chevron USA v. Plaquemines Parish, Louisiana.

One concern is that Justice Samuel Alito chose to recuse himself from the case.

None of us can pre-judge the outcome if the case is sent to federal court; certainly recent events have damaged the public's trust of the national judiciary.

But regardless of what happens, public indignation is overdue over about state and local officials who play pass-the-buck games by enacting laws and regulations designed to create injustice.

When laws are bad, we should blame those who created them and not scapegoat the courts.

Former U.S. Congressman Ernest Istook also heads the non-profit Americans for Less Regulation. Read more Ernest Istook Insider articles. Click Here Now.