San Mateo and Marin Counties and the City of Imperial Beach (the plaintiffs) opposed Peabody Energy Corporation’s (Peabody) motion in federal bankruptcy court in Missouri to enjoin them from pursuing their public nuisance and tort law claims against Peabody. The plaintiffs filed lawsuits in California state court, since removed to federal court, alleging that Peabody and other defendants’ release of greenhouse gases into the atmosphere made them responsible for sea level rise and other climate change impacts affecting their communities. Peabody argued that the discharge and injunction contained in its plan for reorganization barred the claims. The plaintiffs argued that multiple carve-outs in the injunction allowed them to proceed with their claims against Peabody. They contended that they were governmental plaintiffs exercising their police powers, that their statutory public nuisance cause of action did not constitute a “claim” subject to the injunction, and that their claims fell within a carve-out for governmental claims brought under “Environmental Law.”

Action by California counties and cities seeking damages and other relief from fossil fuel companies for sea level rise. 

In re Peabody Energy Corp.

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California Counties and City Argued for Keeping Peabody in Climate Case

Filed

United States of America

Missouri

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