The US Supreme Court buttressed efforts by environmental advocates to hold oil companies accountable for climate change, letting Honolulu press a lawsuit that accuses the industry of deceiving customers about the risks posed by fossil fuels.
The high court, without comment Monday, refused to consider company arguments that federal law bars the suit, one of more than two dozen similar cases around the country. The suits collectively seek billions of dollars from companies that include Exxon Mobil Corp., BP Plc and Chevron Corp.
Companies led by Sunoco LP told the justices that by letting the Honolulu suit proceed, the Hawaii Supreme Court had created a road map for litigation elsewhere. The ruling will “permit suits alleging injuries pertaining to global climate change to proceed under the laws of all 50 states – a blueprint for chaos,” the companies argued.
In a separate appeal, Shell Plc said that “jury verdicts in cases like this could threaten the energy industry.”
Justice Samuel Alito didn’t take part in the court’s consideration of the appeals. Although Alito gave no explanation, his most recent financial disclosure report indicates that either he or his wife own shares of ConocoPhillips and Phillips 66, two of the companies pressing the appeal.
The core question in the appeals was whether Honolulu and its water board could use state consumer protection law to try to tackle climate change. The companies say the issue is a global one that can be addressed only under federal law, including the Clean Air Act.
In urging the Supreme Court to reject the two appeals without a hearing, Honolulu said that “deceptive commercial practices fall squarely within the core interests and historic powers of the states.”
The rebuff comes after the Biden administration said Supreme Court intervention would be premature. The administration said the Hawaii courts haven’t yet ruled on other company arguments that could sharply limit the scope of the case.
The Supreme Court in 2023 turned away company appeals that sought to shift the lawsuits into federal court, where corporate defendants often fare better.
The latest cases are Sunoco v. Honolulu, 23-947, and Shell v. Honolulu, 23-952.
Source: by Greg Stohr for Bloomberg