Wednesday, October 7, 2026
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US Supreme Court Set to Decide on Big Oil Lawsuit

The US Supreme Court is set to decide whether federal law preempts state and local governments from bringing claims against oil companies over climate change, with potentially billions of dollars in damages at stake.

Big Oil asks Supreme Court to kill climate lawsuits before trial
Source: Ars Technica

A major oil industry lawsuit is set to be decided by the US Supreme Court, with potentially billions of dollars in damages at stake.

The case centers around allegations that Big Oil companies deliberately misled the public about climate change, and the industry's contribution to its devastating effects.

Oil companies ExxonMobil and Suncor Energy are arguing before the court that federal law preempts state and local governments from bringing such claims in state courts.

Kannon Shanmugam, representing the oil companies, argued that Boulder's lawsuit is an attempt to use state law to regulate global conduct. According to Shanmugam, this would allow over 90,000 municipalities across the country to make national and international energy policy by imposing catastrophic damages on fossil fuel producers.

The Supreme Court will consider whether federal law indeed preempts state and local governments from bringing such claims in state courts, potentially paving the way for Big Oil's argument that these lawsuits should not proceed.

Boulder's lawyers have maintained that their claim is centered on deception rather than emissions, arguing that oil companies misled consumers about the potential risks of climate change.

The city has been seeking damages from several major oil companies, including ExxonMobil and Chevron, for allegedly concealing information about the environmental impact of their products.

Conservative groups and Big Oil have been working to block these lawsuits from going to trial, with some states passing laws that bar such claims and federal legislation being introduced to shield oil companies from climate liability actions.

The Trump administration has also intervened in several state cases, including Boulder's, attempting to prevent them from moving forward.

The Supreme Court justices appeared skeptical of Boulder's climate lawsuit against major oil companies during a recent hearing.

Several conservative justices seemed inclined to agree that federal law preempts at least some of Boulder's claims, according to Michael Gerrard, faculty director at the Sabin Center for Climate Change Law at Columbia University.

Boulder's lawyers are pinning their hopes on the jurisdictional question, arguing that this case is too early and should be dismissed. Gerrard believes that this might be their best shot.

The oil companies' lawyers have argued that federal law preempts any claims against them tied to climate pollution under both the Clean Air Act and the Constitution itself, which gives exclusive control over interstate pollution to the federal government.

Justice Samuel Alito was absent from the hearing after recusing himself due to ownership of stock in oil companies involved in other lawsuits.

The absence of Justice Samuel Alito from the hearing has left open the possibility of a tie vote, which would allow the case to move forward despite the oil companies' request to kill it.

Outside the court, supporters of the case held rallies, calling on the justices to let it proceed and bring justice to those affected by climate change. Boulder's city manager, Nuria Rivera-Vandermyde, highlighted the daily realities that cities like Boulder face due to climate change, including wildfires, floods, droughts, extreme heat, and water shortages.

Rivera-Vandermyde emphasized in a statement that taxpayers should not bear the costs of these climate-related harms alone. Instead, she argued that those responsible for causing harm, in this case, the oil companies, should also be held accountable and pay their fair share of damages.

Conservative groups and politicians have filed briefs supporting the oil companies, while many academics and former Environmental Protection Agency officials, including some appointed by Republican presidents, have submitted supportive briefs on behalf of Boulder. This unusual coalition reflects the broad interest in the case's outcome.

A broad coalition of major oil companies has asked the US Supreme Court to intervene in a series of climate lawsuits filed against them, seeking to have the cases dismissed before they reach trial.

The request reflects the significant financial and reputational risks associated with these cases, which are being closely watched by observers on both sides of the issue.

Facts based on reporting originally published by Ars Technica.

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