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A ~Research Service
Climate Liability Suits: Is There a Path to
Federal Court?
August 12, 2022
Many of the most prominent court cases related to climate change in recent years have been decided by
federal courts, including the Supreme Court, based on federal law. A growing number of cases, however,
allege state-law claims against fossil fuel companies in state courts. A key issue that has emerged early in
that litigation is whether those state courts will ultimately consider liability related to climate change, or
whether federal courts should instead assume responsibility for those claims.
On July 7, 2022, in City and County of Honolulu v. Sunoco LP, the United States Court of Appeals for the
Ninth Circuit affirmed an order from a federal trial court returning a climate change lawsuit to Hawaii
state court, where it was filed initially. The case was the fifth federal appeals court case to consider
whether federal courts should hear state-law climate lawsuits since the Supreme Court's 2021 decision in
BP p.1.c. v. Mayor and City Council of Baltimore. The Supreme Court in BP directed federal appeals
courts to entertain a broader scope of arguments from the fossil fuel industry that climate liability suits
belong in federal court-not state court.
Since BP, the First, Fourth, Ninth, and Tenth Circuits have considered appeals from the fossil fuel
industry arguing that state-law climate lawsuits should be heard in federal court. Each court of appeals
sent each case back to state court, frustrating defendants' attempts to secure a federal forum. This Legal
Sidebar provides analysis of legal issues related to removal of climate liability suits and considerations for
Congress.
Climate Change Liability Lawsuits
Beginning in earnest in 2018, states and local governments began suing fossil fuel companies for damages
caused by climate change, raising claims under state law in state court. The plaintiffs in these suits allege
that climate change caused them to suffer eroding shorelines, damage to infrastructure, and public-health
impacts due to increased frequency and severity of heatwaves, floods, and other extreme weather events.
To address these alleged harms, the plaintiffs raised legal theories that traditionally have been the domain
of state law, such as claims of public and private nuisance, trespass, and violations of consumer protection
laws that ban deceptive trade practices for failing to warn about the potential harms of producing and
using fossil fuel products. They have avoided claims that would generally implicate questions of federal
Congressional Research Service
https://crsreports.congress.gov
LSB10805
CRS Legal Sidebar
Prepared for Members and
Committees of Congress

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