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As government privatization efforts grow, lawsuits against federal contractors get more difficult
The unanimous ruling could make it harder for plaintiffs to keep contractor disputes in state court, a shift that may affect future government-related cases.
- On April 17, 2026, the Supreme Court issued a unanimous decision making it easier for companies to move cases from state to federal courts, addressing a technical but consequential jurisdictional question.
- Plaquemines Parish, Louisiana, sued oil companies in 2013 for violating a 1978 state law requiring coastal permits, while Chevron argued the companies acted as federal contractors during World War II performing government directives.
- Writing for the Supreme Court, Justice Clarence Thomas sided with Chevron, saying the company had "plausibly alleged a close relationship between its challenged conduct and the performance of its federal duties—not a tenuous, remote, or peripheral" connection.
- The ruling is likely to make it harder for the public to seek redress from companies, as Plaintiffs' attorneys prefer state courts where they are more familiar with local procedures and juries may prove more sympathetic.
- Scholar Steph Tai of the University of Wisconsin-Madison notes the precedent carries broader significance as the federal government increasingly privatizes Defense, Immigration and Customs Enforcement facilities, and potentially the Transportation Security Administration.
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As government privatization efforts grow, lawsuits against federal contractors get more difficult
Chevron's oil production activities in coastal Louisiana are in a long-standing legal dispute. Mario Tama/Getty ImagesThe 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 fo…
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Total News Sources17
Leaning Left4Leaning Right1Center6Last UpdatedBias Distribution55% Center
Bias Distribution
- 55% of the sources are Center
55% Center
L 36%
C 55%
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