ELR Citation: 55 ELR 20012
No(s). 24-30199 (5th Cir. Jan 23, 2025)

The Fifth Circuit affirmed a district court's denial of a motion to remand to state court a lawsuit concerning oil and gas production in New Orleans. The city of New Orleans sued several pipeline operators and a natural gas utility in state court, arguing they violated Louisiana's State and Local Coastal Resources Management Act (SLCRMA) in their oil and gas exploration, production, and transportation activities within the Orleans Parish coastal zone. The operators removed to federal court on diversity jurisdiction grounds, arguing the utility was improperly joined. The city moved to remand, and the district court denied the motion, holding there was no reasonable basis to predict that the city might be able to recover on its claims against the utility because the city did not allege any conduct by the utility that was not lawfully commenced prior to SLCRMA's effective date. The appellate court found the district court did not err in disregarding the utility's citizenship, and that there was complete diversity of citizenship among the properly joined parties because the city filed the suit on its own behalf. It affirmed the district court's denial of the motion to remand.