Why a Tidal Wave of Climate Lawsuits Looms Over the Fossil Fuel Industry

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By Karen Savage, The Climate Docket. Originally published on The Climate Docket.

Amid a summer rife with climate-related disasters, the liability lawsuits came like an advancing flood, first Minnesota and Washington D.C. within days of each other in June, followed by Hoboken, Charleston, Delaware and Connecticut in rapid succession in September. Their suits have turned a summer of unrest into a quest to make fossil fuel companies pay for the damages caused by the burning of their products, joining a trend that began three years ago but evolving to match the circumstances ofย today.

This summer, extreme heat blanketed much of the Northeast, with seven statesย recording the hottestย Julyย on record.ย Wildfiresย have swept through the west, destroying homes, uprooting lives and searing the lungs of millions with unrelenting smoke. Residents inย Louisianaย andย Alabamaย have faced a continuing barrage of hurricanes and storms, dumping unimaginable amounts of rain andย misery.

Recovery willย cost billionsย and that doesnโ€™t include whatโ€™s needed to protect residents from future climate change-relatedย disasters.

The latest round of lawsuits draws from the dozens filed across the country since 2017, but with a few new twists. They continue to charge fossil fuel companies with public nuisance for producing and marketing a dangerous product, but they increasingly allege the companies acted together to also violate state consumer fraud statutes. And for the first time, they have begun to include the industryโ€™s largest trade group, the American Petroleum Institute (API), among the alleged culprits in deceiving theย public.ย 

โ€œThere is a very strong evidentiary basis for showing that these companies knew about the impacts of climate change and colluded to prevent the dissemination of that information,โ€ said Jessica Wentz, a senior fellow at Columbia Universityโ€™s Sabin Center for Climate Changeย Law.

Nearly all the lawsuits have been filed in state courts, alleging state law violations. Fossil fuel companies have doggedly tried to have the cases moved to federal court, where they think they will have a better chance at getting them dismissed, but a string of appellate court rulings have pushed them back to state court. The companies have asked the Supreme Court to weigh in, which seems increasingly unlikely as the circuit courts have all issued similar rulings and the Supreme Court usually only intervenes at this point if the circuits have issued conflictingย rulings.ย 

Those decisions have likely encouraged the filing of more suits, a trend experts expect toย continue.

Newย Tactics

Notably, the newer cases have morphed from focusing heavily on nuisance claims, to include claims of failure to warn and creating a public danger, Pat Parenteau, professor of environmental law at the Vermont Law Schoolย said.

โ€œFraud, deceit, thatโ€™s really the theme,โ€ Parenteauย said.ย 

โ€œWeโ€™re seeing these consumer-based cases, and thatโ€™s an interesting development, trying to base a claim for damages, not just sort of penalties or traditional enforcement for violating consumer laws, but actual disgorgement of profits and damages for violating the state consumerย laws.โ€ย 

The municipalitiesโ€™ strongest claims are failure to warn, Parenteauย said.

โ€œThereโ€™s plenty of evidence now โ€” maybe not for every single defendant, but certainly for the major defendantsโ€”to show that they really did know the problem, and in fact, they were taking precautions to protect their own assets from what they knew, and they didnโ€™t warn,โ€ Parenteau said. โ€œFar from it, they conspired to propagandize and confuse and so forth, delay, and I think thatโ€™s going to play big time with theย jury.โ€

Minnesota, Hoboken and Delaware added API to the mix as a defendant, alleging the trade group worked alongside the companies in a coordinated campaign ofย deception.

Parenteau said the API will โ€œfight like hell,โ€ but will have a tough time shaking theย suits.

โ€œTheir fingerprints are all over these documents in this propaganda and this false advertising and this spin, itโ€™s not like they were passing or innocent bystanders, theyโ€™re in the thick of it,โ€ Parenteauย said.

The Tobaccoย Parallel

The obvious comparison for these lawsuits is the fight to hold Big Tobacco accountable for deceiving the public about the dangers of smoking. While the two issues differ in significant ways โ€” the impacts of climate change vary widely by location, for instance, and are much harder to define than a cancer diagnosis โ€” but they both rely on the science definitively linking the harm to the product, known as attributionย science.ย 

If tobacco litigation is any indication, attribution science will be key in climate change-related litigation, according to Dr. Benjamin Franta, a postdoctoral candidate at Stanford University who researches the history of the fossil fuelย industry.ย 

โ€œ[Tobacco litigation] failed for 30 years before it started to succeed and thatโ€™s when the winning formula was found, which was to combine the science with the historical research that showed that the companies knew,โ€ said Dr. Benjamin Franta, a postdoctoral candidate at Stanford University who researches the history of the fossil fuelย industry.

โ€œThat created this moral and legal culpability that came together with the epidemiology โ€” basically the attribution science in thatย area.โ€

In the case of Big Oil, linking the burning of fossil fuels with the warming of the atmosphere is fairly well settled, but Wentz said the companies will likely try to cast doubt on thatย attribution.ย 

โ€œThe challenge for petitioners is to show that they have suffered an injury that is linked not only to climate change, but also to the specific contributions of the defendants,โ€ Wentz said at a recent panel on climate litigation hosted by the Union of Concernedย Scientists.

Attribution science has advanced greatly in recent years. Work by researcherย Richard Heedeย and others has traced greenhouse gas emissions since the industrial revolution to the 90 top carbon producers. Notably, most of those emissions happened in recent years, well after fossil fuel companies knew the risk their products posed to theย climate.

โ€œScience is shifting to be able to not just look at climate change resulting from all human-caused greenhouse gas emissions, now science is increasingly able to attribute changes to specific emission sources,โ€ Rachel Licker, a senior climateย scientistย at theย Union of Concerned Scientists who has studied ocean acidificationย said.

Scientists are now able to determine the extent to which human activities have influenced climate impacts such as ocean acidification, heatwaves and specific extreme weather events, such as hurricanes and floods, Lickerย added.

What the Oil Companies Knew andย When

Tobacco litigation, which began in the mid-1950s with suits filed by individual plaintiffs, took more than 30 years to succeed in any form. It wasnโ€™t until 1998 โ€” after attorneys general in all 50 states and Washington D.C. took the reins and filed suits alleging violations of state consumer protection and antitrust laws โ€” that the historicย settlementย was reached, forcing the companies to pay for the harm they hadย caused.ย 

The AGโ€™s were helped immensely byย whistleblowers, including a pretrial deposition given byย Jeffrey S. Wigand, a former Brown and Williamson vice president of research and development, who divulged that tobacco companies not only knew the link between smoking and cancer, but had alsoย manipulated research to obscure thatย link.ย 

Seven attorneys general have already filed climate change-related suits, which means this era of litigation may progress much faster than tobacco. They also already have whistleblowersโ€™ information at their disposal, with much already known about the companiesโ€™ deceptiveย practices.

Reporting byย InsideClimate Newsย and theย Los Angeles Timesย in 2015 revealed that Exxon knew about the harmful effects of climate change for decades, yet still funded climate denial campaigns and worked to cast doubt among the public on the imminent impacts of climate change. Those investigations also showed that the other oil companies, along with API, knew of this research as well, worked to lobby against climate action and funded decades of the campaigns that promotedย denial.

Franta, along withย Naomi Oreskesย and Erik M. Conway,ย Robert Brulle,ย Geoffrey Supranย and other researchers have exposed clear connections between fossil fuel companies and efforts to block policies to curb climateย change.

โ€œWe found the tip of the iceberg, but through litigation, we can find much more as well and put a stop to bad corporate behavior,โ€ Frantaย said.ย 

A Tobacco-Style Settlement Is a Long Wayย Away

According to the tobaccoย agreement, the attorneys general and the companies settled โ€œto avoid the further expense, delay, inconvenience, burden and uncertainty of continued litigation (including appeals from anyย verdicts).โ€ย ย 

Tobacco companies were required to pay about $12.75 billion up front and must continue to pay billions annually, inย perpetuity.

The settlement prohibits companies from engaging in deceptive advertising and marketing campaigns, bans them from hiding the harmful effects of tobacco use and prohibits marketing of tobacco products to children. Certain tobacco front groups were dismantled and companies were required to publicly post documents disclosed duringย discovery.

Many of the recently filed climate change-related lawsuits seek similar remedies. In addition to asking courts to award damages for harms, municipalities are asking that fossil fuel companies be ordered to stop deceiving the public, to fund public education campaigns highlighting the risk posed to the climate by their products, and to make public all of their climate change-relatedย research.

Although climate litigation has moved faster than tobacco litigation and despite what he referred to as a โ€œveritable tsunamiโ€ of recent filings, Parenteau said climate litigation is not yet where tobacco litigation was when settlement talksย began.

โ€œThere you had a class of people affected health-wise, with very specific diseases, lung cancer and other things, and a pretty defined product and set of defendants,โ€ Parenteau said. โ€œClimate isnโ€™t like that โ€” if it gets to that point where a jury has rendered a liability verdict, then I think theyโ€™re going to settle, but even then theyโ€™re probably going to settle one byย one.โ€ย 

A global tobacco-like settlement is unlikely, Parenteau said, because the costs are challenging toย quantify.ย 

โ€œFor the amount of money that certain jurisdictions are already extending, what you would call liquidated damages, I can obviously see that as recoverable โ€” but future damages? What kind of a model are you going to build that you could monetize what those would look like, I have no idea,โ€ Parenteauย said.

Far easier to compute is the amount companies are spending on attorneys fees, which Parenteau estimates could already be nearing $20ย million.ย 

โ€œIt may be that some of these defendants will start to peel off and try to cut their losses and cut some deals,โ€ Parenteau said, adding that thereโ€™s no guarantee that even the most high-powered attorneys will get fossil fuel companies off theย hook.

In the meantime, Franta predicts the litigation will lead to a better understanding of climate change and the damage allegedly caused by theย companies.

โ€œThese lawsuits, I think, will drive a much more concrete and precise understanding of exactly what we have lost, exactly how much damage has occurred, where, and also the costs of delay โ€” the cost of what if we had done something more 40 years ago, 30 years ago โ€” what if the companies had not dissembled and denied and delayed, what could we haveย done.โ€

Main image: A flooded Exxon gas station in Seaford, Delaware, 2006. Credit:ย DCist,ย CC BYย 2.0

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