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April 24, 2023

US Supreme Court Rejects Oil Companies' Bid to Move Climate Lawsuits to Federal Courts

US Supreme Court Rejects Oil Companies' Bid to Move Climate Lawsuits to Federal Courts
Johnathan Maxwell
Johnathan Maxwell

The US Supreme Court on Monday declined to hear bids by major oil companies, including Exxon Mobil Corp, Suncor Energy Inc, and Chevron Corp, to move a growing wave of climate lawsuits from state courts to federal courts. The justices turned away five appeals of lower court decisions that determined the lawsuits belonged in state court—a venue often seen as more favorable to plaintiffs than federal court.

The lawsuits were filed by the state of Rhode Island and municipalities or counties in Maryland, Colorado, California, and Hawaii. The eventual rulings in these cases could help determine whether such lawsuits must be waged at the federal level or at the state level.

Oil companies have denied the allegations brought forth by local governments under state law. They argue that these allegations are made "to conceal the federal character of their claims in state garb." However, on Monday, the Supreme Court allowed these climate change-related lawsuits against energy companies—including BP and Shell—to proceed at their current venues.

Business groups expressed disappointment with this decision. Phil Goldberg—a lawyer with National Association Manufacturers' legal arm—argued that climate issues should be dealt with nationally or internationally rather than within individual states.

A notable difference came from President Biden's administration compared to his predecessor: they urged the court not to hear this case and changed its legal position regarding where such suits should be heard; opting for jurisdiction over them remaining within respective states instead.

Despite losing lower-court decisions across all five cases involving cities and municipalities in Colorado, Maryland, California Hawaii Rhode Island -the narrow ruling does not necessarily indicate how high court may ultimately decide upon merits themselves when it comes time