Supreme Court And Climate Change Could Help Oil Industry

“The U.S. Supreme Court has announced it will hear an appeal of a district court decision that ordered a climate change damage suit against oil companies by state AGs be heard in state courts. This could upend that plan. ”

Last Friday, the U.S. Supreme Court agreed to hear an appeal by major international oil companies contesting Baltimore's lawsuit seeking damages for the impact of global climate change filed in Maryland’s state courts.  The justices will consider if the lawsuit must be heard in state court - as the city would prefer - or in federal court, which the corporate defendants argue is the appropriate venue given that carbon emissions are a national rather than a local issue. 

The announcement is significant as multiple states including Rhode Island, New York, Massachusetts and various cities have sued the energy companies, first in federal courts, but then in state courts.  The state attorneys general have moved to state courts because the initial suits filed in federal courts in California were tossed for being the wrong venue and the issue really being a legislative matter rather than a legal matter.  State courts provide a more sympathetic playing field for state attorneys generals filing their suits. 

This move was a surprise, but likely reflects the seriousness of the debate over climate change and whether it is a national rather than a local issue, which influences the appropriate venue for adjudicating it.  A favorable Supreme Court ruling could mean less litigation for the oil industry.