D.C. Argues for Climate Lawsuit to Stay Under Local Jurisdiction

WASHINGTON -- The District of Columbia is asking a federal appeals court to keep an environmental lawsuit against major oil companies in D.C. Superior Court and subject to local consumer laws.

The oil companies, ExxonMobil Corp., Shell PLC, BP PLC and Chevron Corp., argue only federal law that empowers the Environmental Protection Agency has jurisdiction over its operations.

The D.C. lawsuit says the oil giants used deceit to market their oil and gas products by downplaying the risk of global warming and health hazards.

The District of Columbia Consumer Protection Procedures Act forbids deceptive marketing.

"The companies argue that federal common law 'governs' these claims," says a brief filed last week by the D.C. Attorney General’s office. "But there is no federal common law that governs consumer protection and deceptive marketing claims, which is fatal to their argument."

The oil companies argue the key issue is their extraction, production and sale of fossil fuels, all of which fall under the exclusive jurisdiction of the federal government. As a result, they argue only a federal court should rule on the D.C. lawsuit.

A U.S. Court of Appeals for the D.C. Circuit decision on which court can rule on the lawsuit is likely to set a precedent for many other cases. Several local and state governments are suing oil companies for the damage they allegedly caused to the climate.

The D.C. attorney general filed its suit in D.C. Superior Court in June 2020. The companies removed the case to the U.S. District Court for the District of Columbia.

Judge Timothy J. Kelly sent the lawsuit back to D.C. Superior Court in November 2022. The oil companies appealed to the U.S. Court of Appeals.

The oil companies are winning support from the U.S. Chamber of Commerce and a coalition of 14 states, including Georgia and Texas. They filed amicus briefs urging the D.C. Circuit to keep the case in federal court.

Oral arguments are set for May 8.

The case is District of Columbia v. ExxonMobil Corp. et al., case number 22-7163, in the U.S. Court of Appeals for the D.C. Circuit.

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