After determining that it had subject matter jurisdiction over the citizen suit claim, the district court elected to abstain under Burford, and remanded the case to state court. Alternatively, Grace Ranch argued that the district court should abstain from hearing the case under the Burford doctrine, which applies when federal court adjudication of claims may result in entanglement with state efforts to implement important policy programs. Long ago the Supreme Court held that a State has no citizenship for purposes of evaluating federal diversity jurisdiction. Grace Ranch opposed removal, arguing that there was no diversity of citizenship because the State of Louisiana was the real party in interest to its citizen suit claim. The defendants removed the case to federal court on diversity jurisdiction grounds given that Grace Ranch is a citizen of Louisiana, and BP and BHP are residents of Texas and Delaware. Grace Ranch sought an injunction ordering the defendants to remediate its property. That statute allows a party in interest adversely affected by a violation of the laws of conservation to file its own lawsuit. Nearly two years after the dismissal of that initial suit, Grace Ranch sued BP and BHP again in state court under the citizen suit provision of Revised Statute 30:16. That first suit was dismissed pursuant to Louisiana’s “subsequent purchaser” doctrine. In a prior suit, Grace Ranch sued BP America Production Company (BP) and BHP Petroleum Americas (BHP) in contract and tort for alleged contamination of Grace Ranch’s land. (Grace Ranch), for alleged contamination of its property. The Grace Ranch opinion arose out of the second lawsuit by Grace Ranch L.L.C. This decision is likely to have far-reaching consequences for Louisiana legacy litigation, where courts have seen a recent uptick in claims by landowner-plaintiffs brought under the citizen suit provision of Louisiana Revised Statute 30:16, seeking to have their property remediated due to alleged contamination by historical oil and gas operations. 24, 2021), the United States Court of Appeals for the Fifth Circuit addressed a question that has increasingly become a sticking point in Louisiana “legacy” cases: whether claims brought under a Louisiana citizen suit provision for alleged violations of state environmental regulations can be heard in federal court. BP America Production Company, et al., No. In its recent decision in Grace Ranch, L.L.C.
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