Supreme Court Begins New Term with Climate Change Lawsuit

On Monday, the Supreme Court commenced its new session with a significant oral argument about whether federal or state laws should govern civil cases against energy companies accused of causing climate change-related damage.

For nearly two hours, the eight justices deliberated a crucial issue concerning environmental liability — specifically, who holds the authority and in which court these cases should be heard. After the public discussion, it was hard to gauge which way the court might lean in its decision.

Justice Samuel Alito was not present, having recused himself last week amid calls for him to step aside due to his stock ownership in oil companies, although he does not own stock in the companies involved in this case.

Local and state governments are seeking billions of dollars in damages, arguing it is essential for rebuilding efforts following disasters like wildfires, rising sea levels, and severe storms exacerbated by pollution from fossil fuels.

Meanwhile, the energy companies, supported by the former Trump administration, contend that emissions are a national concern that ought to be adjudicated in federal court, as similar lawsuits have been dismissed there.

The justices now face the question of whether they have the authority to hear this case or if it should remain in state courts. Chief Justice John Roberts might play a pivotal role in this scenario; he posed challenging questions to both sides, potentially leading to a 4-4 tie with Alito’s absence. If that occurs, the lawsuit could proceed in state courts, as the court has previously allowed claims like this to be resolved outside the federal system.

Roberts mentioned, “There are many instances of conduct beyond a state impacting others, and we do permit state courts to handle litigation in specific cases.” He seemed uncertain about why this case is viewed differently compared to those where state courts have been allowed to proceed.

Justice Elena Kagan drew parallels between the climate lawsuits and earlier cases against tobacco and opioid companies that states initiated on behalf of their residents.

Kavanaugh, reflecting what seemed to be the perspective of his conservative colleagues, raised concerns about the potential consequences of a wave of multi-jurisdictional lawsuits lasting for years. He noted that if these lawsuits proliferate, it could threaten the financial viability of many defendants across various industries. He emphasized that Congress has established that pollution of this nature is generally a federal issue unless stated otherwise.

The current lawsuit is part of a broader trend of legal action initiated by various states and municipalities nationwide. Boulder County, located just northwest of Denver, filed its complaint back in 2018.

Among the defendants are Suncor, notably the only significant oil refinery operator in Colorado, and ExxonMobil, America’s largest oil firm. Local officials allege that these energy companies have misled the public about their contributions to climate change and insist that financial repercussions are vital to mitigate ongoing issues in their communities, like worsening air pollution and recent forest fires.

Some states have also criticized the current administration for rolling back protections established by the Clean Air Act, claiming this undermines their regulatory authority.

Nonetheless, the energy companies alongside the Trump Justice Department argue that the issue of climate change should be addressed by the national government in federal courts, contending that the Clean Air Act restricts what individual states can enact.

The justices may not need to delve into the core federalism question due to the likelihood of a split decision. They have also requested both parties to consider whether the Court should proceed with the case at this stage, potentially postponing significant issues for later consideration.

Justice Ketanji Brown Jackson queried the attorney for the oil companies about why the Court shouldn’t wait to address all claims until state courts finalize their federal matters.

The case in question is Suncor Energy Inc. v. Commissioners of Boulder County, CO (25-170), with a ruling anticipated by next spring.