ELR Citation: 55 ELR 20072
No(s). 24-1753 (3d Cir. Jun 11, 2025)

The Third Circuit affirmed a district court order remanding to state court a lawsuit concerning a chemical company's design, manufacture, marketing, and sale of 1,4-dioxane. The state of New Jersey sued the company in state court, arguing its products substantially harmed the environment. The company removed the suit to federal court under the federal officer removal statute, asserting that it acted under the U.S. government and military in designing and producing 1,4-dioxane inhibited 1,1,1-trichloroethane (TCA). The district court found the company was not acting under the government because it produced and sold 1,4-dioxane inhibited TCA "independently and before the implementation of the federal regulations on which it relies"; it ordered the suit to be remanded to state court. The appellate court found the company did not satisfy the "acting under" test because the government never guided or controlled the company's production of inhibited TCA, and nothing required the company to create and sell it to the government. It affirmed remand to state court.