Supreme Court allows state and local climate lawsuits against oil companies to continue
WASHINGTON – Oil and gas corporations have, for the time being, not succeeded in persuading the Supreme Court to halt various lawsuits across the nation that seek compensation for damages linked to climate change.
On Monday, the court opted not to decide whether federal law limits the ability of states and cities to sue these companies.
The fossil fuel industry argued that it is crucial for the court to intervene now before they expend significant resources fighting these lawsuits, which they assert pose a “substantial threat to one of the country’s most essential sectors.”
“The implications of this case are extremely significant,” lawyers representing several companies stated to the Supreme Court while challenging a ruling from the Hawaii Supreme Court that allowed a lawsuit there to proceed.
In recent years, the Supreme Court has turned down the industry’s attempts to transfer these cases to federal court.
The departing Biden administration recommended that the court refrain from getting involved at this point. The Justice Department contended that the state Supreme Court’s ruling was accurate and that, since this case is being handled at the state level, the U.S. Supreme Court should not intervene during the ongoing litigation.
The administration also stands against a move from Republican-led states to obstruct these lawsuits.
Expect President-elect Donald Trump to adopt a different stance.
States and local governments that are suing the oil and gas sector claim that the industry intentionally hid and misrepresented the environmental consequences of fossil fuels while marketing their products.
These lawsuits draw inspiration from successful actions against tobacco and opioid manufacturers and utilize consumer protection laws and public nuisance claims.
However, fossil fuel companies argue that climate change is a global issue, not a local one.
“Lawsuits like these that aim to regulate worldwide emissions exceed state law boundaries,” lawyers for Shell stated in a legal brief.
On the other hand, attorneys for Honolulu asserted that the city is not trying to oversee pollution, but seeking compensation for the local effects of climate change linked to the companies’ “deceptive practices.”
The city advised the Supreme Court that the justices should refrain from intervening until additional courts nationwide have assessed whether federal law overrides the state lawsuits. Lawyers mentioned that courts in Maryland, New Jersey, and South Carolina might be deliberating on this issue soon.
“The process of percolation has only just started,” the attorneys remarked, emphasizing that the “massive” oil and gas firms are “well-equipped to handle the usual costs and risks of state-court litigation.”