Connecticut v. Exxon Mobil Corp.

The Second Circuit Court of Appeals affirmed an order remanding to state court the State of Connecticut’s lawsuit alleging that Exxon Mobil Corporation (Exxon) violated the Connecticut Unfair Trade Practices Act (CUTPA) by misleading and deceiving consumers about Exxon’s fossil fuel products’ impacts on climate. The Second Circuit first rejected Exxon’s arguments that there were exceptions to the well-pleaded complaint rule beyond the three established exceptions for cases (1) where a federal statute explicitly provides for removal of state law claims, (2) where federal law completely preempts state law claims, and (3) where a state law right necessarily turns on a question of federal law. The Second Circuit said its precedent “squarely foreclosed” Exxon’s argument that the “artful pleading doctrine” provided a “broad, flexible exception … that extends beyond the bounds” of those three exceptions; the Second Circuit said the artful pleading doctrine was “simply a label for the first two of the three exceptions to the well-pleaded complaint rule.” The Second Circuit also rejected the argument that there was a fourth exception to the well-pleaded complaint rule for claims that may arise under federal common law. The Second Circuit further concluded that the third exception to the well-pleaded complaint rule did not apply because Connecticut’s deception and unfairness claims under CUTPA did not necessarily raise a federal issue because they could be resolved without reaching the federal common law of transboundary pollution. In addition, the Second Circuit found that Exxon did not establish that removal was authorized under the federal-officer removal statute or the Outer Continental Shelf Lands Act.

On November 15, 2021, briefing was completed in ExxonMobil's (Exxon's) appeal of the remand order in the State of Connecticut’s case alleging that Exxon engaged in deceptive and unfair business practices in violation of the Connecticut Unfair Trade Practices Act by misleading and deceiving consumers “about the negative effects of its business practices on the climate.”

On October 5, 2021, the Second Circuit Court of Appeals stayed the district court’s remand order pending appeal in the State of Connecticut’s unfair trade practices case against Exxon Mobil Corporation (Exxon). The Second Circuit found that Exxon had made a sufficient showing that it was entitled to a stay. Connecticut was ordered to file its brief within 30 days (by November 4), and Exxon’s reply brief is due 10 days after Connecticut files its brief.

The Second Circuit scheduled oral argument for October 5, 2021 on Exxon Mobil Corporation’s motion to stay the remand order in Connecticut’s case against the company.