WASHINGTON — The Supreme Court heard arguments Oct. 5 in Suncor v. Boulder, a case that will determine whether cities and states can pursue climate change lawsuits against the fossil fuel industry under state law without running afoul of federal preemption.
The case centers on whether Boulder, Colorado, and other municipalities can extract billions in damages from oil companies for alleged climate harms—or whether federal law blocks those state-level actions.
During oral arguments, Justice Clarence Thomas pressed Kevin Russell, Boulder's attorney, on how broadly the legal theory could apply. Russell acknowledged that "nothing in our theory prevents" the lawsuits from extending beyond oil producers to other large corporations, though he noted that state tort law could impose limits.
Justice Brett Kavanaugh raised sharp concerns about the financial stakes. He questioned whether a cascade of such lawsuits could "bankrupt" defendants and worried that "virtually any manufacturer or business" could face similar claims under the same legal premise.
Jason Isaac, CEO of the American Energy Institute, warned that a ruling for Boulder could trigger a "mass exodus" of energy companies from the market, driving up fuel prices and creating scarcity for consumers.
Boulder and its county filed suit in 2018 against ExxonMobil and Suncor Energy, accusing them of knowingly contributing to climate change while misleading the public about fossil fuels' dangers. The municipalities cited a 1977 internal ExxonMobil memo sent to top executives stating that "current scientific opinion overwhelmingly favors" the position that fossil fuels contribute to rising carbon dioxide emissions.
About 30 similar lawsuits are pending across the country, including cases filed in Portland, Oregon, and Baltimore, Maryland.
David Bookbinder, who previously served as counsel for Boulder, has characterized the litigation as a mechanism to implement an "indirect carbon tax."
The decision will determine who bears the financial cost of climate change in the United States. A win for Boulder shifts billions in liability to the energy sector and empowers local governments to reshape energy policy through courts. A loss shuts down a major legal avenue for states and cities to challenge the industry.
