Dow Chemical to Face New Jersey Toxic Spill Suit in State Court

Dow Chemical Co. didn’t act as a government contractor while developing a metal cleaning substance, a federal appeals court ruled, so it and other companies must continue to face New Jersey’s suit over industrial chemical contamination in state court.

Dow didn’t produce the chemical “on the government’s watch,” therefore the company can’t remove the litigation to a federal court under the federal-officer removal statute, the US Court of Appeals for the Third Circuit said Wednesday.

State court is the preferred venue of the plaintiffs, who are a variety of New Jersey officials including the attorney general and the Department of ...