Pelican Institute Responds to $745M Verdict in Plaquemines Coastal Lawsuit Case

NEW ORLEANS - April 28, 2025 - PRLog -- The Pelican Institute for Public Policy, led by CEO Daniel Erspamer, issued a statement in response to the jury's verdict in the Plaquemines coastal litigation case.

The $745 million verdict strikes a heavy financial blow to the energy sector, which is a vital part of Louisiana's economy. According to Erspamer, this decision means that Louisiana will see "hundreds of millions less for energy production, drilling investments, and the jobs they create."

Erspamer called the verdict a setback for the new administration and the thousands of Louisiana families who depend on a strong energy sector. He also warned that it sends a concerning message about the state's economic future and legal environment.

Legal Uncertainty and Economic Risk

The Institute expressed concern over the precedent this case sets for retroactive liability. For over a decade, lawsuits like this have focused on lawful activities conducted by energy producers under permits and regulations in place at the time. Erspamer explained that the case is based on the flawed idea that companies should be held responsible for actions that were legal and permitted at the time, actions which the government had even encouraged. He warned that this approach could have dangerous consequences.

This approach, according to the Pelican Institute, introduces legal uncertainty that threatens long-term economic development. Erspamer warned that if the decision stands, it could weaken legal certainty and discourage future investment in the state.

The Institute emphasized that legal stability is essential for businesses to make confident, forward-looking decisions. Without it, companies are more likely to withhold investment or relocate, diminishing job growth and tax revenues essential to public services.

Real Solutions for Coastal Protection

While acknowledging Louisiana's environmental concerns, Erspamer criticized the use of the courts as the primary avenue for resolution. Erspamer acknowledged Louisiana's real coastal challenges but stated that using the courts for politically motivated lawsuits is not the solution.

Instead, the Pelican Institute advocates for solutions that pair economic and environmental interests. Erspamer emphasized that Louisiana needs practical, science-based solutions to protect the coast and grow the economy. He highlighted the need to align public and private interests to achieve shared goals. Using the court system against industries that provide jobs and vital tax revenue for schools, hospitals, and infrastructure only undermines this effort.

Erspamer urged leaders to reject the notion that environmental protection and economic development are mutually exclusive. "Working together, we can—and must—do both," he said.

The Pelican Institute is dedicated to pushing for bold leadership, balance, and impactful reform. These efforts aim to foster certainty, collaboration, and lasting prosperity for Louisiana.

To learn more about the Pelican Institute's work, visit www.pelicaninstitute.org.