Munger, Tolles & Olson Secures Landmark Appellate Victory for Chevron

Munger, Tolles & Olson secured a landmark appellate victory for Chevron when the U.S. Court of Appeals for the Ninth Circuit issued a published opinion upholding the dismissal of a class action alleging oil companies and foreign governments fixed gasoline prices in 2020.

Filed by retail gasoline consumers, the lawsuit alleged that Chevron and other domestic oil companies conspired to raise oil and gasoline prices by persuading former President Trump to end a price war between Saudi Arabia and Russia by promising that the United States would curtail oil production if the other nations did so as well.

In January 2023, a federal court dismissed the complaint, determining that the claims related to the alleged deal negotiated by the Trump administration were subject to the “political question” and “act of state” doctrines, which prevent judicial interference in executive branch decisions. The gas consumers subsequently appealed the decision to the Ninth Circuit. On appeal, an MTO appellate team successfully argued that the federal court’s dismissal was appropriate because the allegations involved foreign policy decisions, areas beyond the jurisdictional authority of courts. The Ninth Circuit agreed and affirmed the federal court’s decision.

This precedent-setting case resolved important questions within the Ninth Circuit regarding the interplay between antitrust statutes and doctrines that limit federal courts’ jurisdiction over complex global foreign policy issues. The ruling emphasized that the political question doctrine—which bars federal courts from addressing issues best handled by other government branches—precluded judicial review of the case. Additionally, the court found that the act of state doctrine—which limits judicial review of foreign policy matters—prevented the court from assessing the actions of the foreign countries involved in the alleged oil agreement.

The MTO appellate team included Ginger Anders, Glenn Pomerantz, Stephany Reaves and Helen White.

The case garnered media coverage in Reuters, Law360 and other publications.