Board of Commissioners v. Tennessee Gas Pipeline Co.

850 F.3d 714, 2017 U.S. App. LEXIS 3865, 2017 WL 874999
CourtCourt of Appeals for the Fifth Circuit
DecidedMarch 3, 2017
Docket15-30162
StatusPublished
Cited by58 cases

This text of 850 F.3d 714 (Board of Commissioners v. Tennessee Gas Pipeline Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Board of Commissioners v. Tennessee Gas Pipeline Co., 850 F.3d 714, 2017 U.S. App. LEXIS 3865, 2017 WL 874999 (5th Cir. 2017).

Opinion

*720 PRISCILLA R. OWEN, Circuit Judge:

The Board of Commissioners of the Southeast Louisiana Flood Protection Authority-East filed a lawsuit in Louisiana state court against various companies involved in the exploration for and production of oil reserves off the southern coast of the United States. The Board alleged that Defendants’ exploration activities caused infrastructural and ecological damage to coastal lands overseen by the Board that increased the risk of flooding due to storm surges and necessitated costly flood protection measures. Defendants removed the case to federal court, and the district court denied the Board’s motion to remand, on the ground that the Board’s claims necessarily raise a federal issue. Defendants also moved to dismiss the case for failure to state a claim on which relief can be granted, and the district court granted the motion. We affirm.

I

In July 2013, the Board of Commissioners of the Southeast Louisiana Flood Protection Authority-East (the Board) filed a lawsuit in Louisiana state court against ninety-seven entities (the Defendants) involved in the exploration for and production of oil reserves off the southern coast of the United States. The Board, whose purpose is “regional coordination of flood protection,” 1 alleges that since the 1930s, coastal landscapes that serve as a “first line of defense” against flooding (the Buffer Zone) have been suffering from rapid land loss. The Board alleges that replacement of land in the Buffer Zone with water threatens the existing levee system and imperils coastal communities. It further asserts that Defendants’ oil and gas activities — primarily the dredging of an extensive network of canals to facilitate access to oil and gas wells — has caused “direct land loss and increased erosion and submergence in the Buffer Zone, resulting in increased storm surge risk.” Attached to the complaint was a list of Defendants’ names, agents, and addresses; a map depicting the levee districts under the Board’s purview; a list of the names and location information of wells operated by Defendants; a list of the locations in the relevant levee districts subject to dredging permits and the permittees benefltting thereunder; and a list of the locations and grantees of rights of way in the relevant levee districts.

The Board’s asserted bases for recovery from Defendants include negligence, strict liability, natural servitude of drain, public nuisance, private nuisance, and breach of contract as to third-party beneficiaries. The Board describes the “highly costly but necessary remedial measures” that it has undertaken or will undertake to protect against the increased storm surge risk. These measures include “abatement and restoration of the coastal land loss at issue,” including backfilling and revegetat-ing each canal dredged by Defendants; the joint state-federal Hurricane and Storm Damage Risk Reduction System, some of the cost of which has been borne by the Board; investigation and remediation of defects in the local levee systems to comply with relevant certification standards; and “additional flood protection expenses,” including the construction of “safe houses” for use by employees during dangerous flooding conditions.

The complaint describes “a longstanding and extensive regulatory framework under both federal and state law” that protects against the effects of dredging activities and establishes the legal duties by which Defendants purportedly are bound. It enu *721 merates four main components of this framework, including the Rivers and Harbors Act of 1899 (RHA); 2 the Clean Water Act of 1972 (CWA); 3 “[rjegulations related to rights-of-way granted across state-owned lands and water bottoms administered by the Louisiana Office of State Lands”; and the Coastal Zone Management Act of 1972 (CZMA) 4 “and related Louisiana coastal zone regulations bearing directly on oil and gas activities.” None of the individual claims relies on a cause of action created under federal law, and the negligence, strict liability, and natural servitude claims explicitly rely on state law causes of action.

The Board seeks “[a]ll damages as are just and reasonable under the circumstances,” as well as injunctive relief requiring the backfilling and revegetating of canals, “wetlands creation, reef creation, land bridge construction, hydrologic restoration, shoreline protection, structural protection, bank stabilization, and ridge restoration.”

Defendants removed the case to federal court, asserting five separate grounds for federal jurisdiction. The Board moved to remand, and the district court denied the motion, concluding that the Board’s state law claims “necessarily raise a federal issue, actually disputed and substantial, which a federal forum may entertain without disturbing the congressionally approved balance of federal and state judicial responsibilities.” Defendants moved to dismiss the case pursuant to Federal Rule of Civil Procedure 12(b)(6) as preempted by federal law and barred under state law. The district court granted the motion with respect to all of the Board’s claims, concluding that none of the Board’s stated grounds for relief constituted a claim upon which relief could be granted under state law. The Board appealed.

II

We review an order denying remand to state court de novo. 5 A federal court may exercise federal question jurisdiction over any civil action that “arises under the federal constitution, statutes, or treaties.” 6 A federal question exists only where “a well-pleaded complaint establishes either that federal law creates the cause of action or that the plaintiffs right to relief necessarily depends on resolution of a substantial question of federal law.” 7 However, “[t]he fact that a substantial federal question is necessary to the resolution of a state-law claim is not sufficient to permit federal jurisdiction.” 8 Only in a “ ‘special and small category’ of cases” will federal jurisdiction exist when state law creates the cause of action. 9 That limited category of federal jurisdiction only exists where “(1) resolving a federal issue is necessary to resolution of the state-law claim; (2) the federal issue is actually disputed; (3) the federal issue is substantial; and (4) *722 federal jurisdiction will not disturb the balance of federal and state judicial responsibilities.” 10 “[I]f a plaintiff files suit in state court alleging both federal and state claims arising out of the same controversy, the entire action may be removed to federal court.” 11

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Bluebook (online)
850 F.3d 714, 2017 U.S. App. LEXIS 3865, 2017 WL 874999, Counsel Stack Legal Research, https://law.counselstack.com/opinion/board-of-commissioners-v-tennessee-gas-pipeline-co-ca5-2017.