The federal district court for the District of Puerto Rico dismissed Puerto Rico municipalities’ federal and Puerto Rico law claims that fossil fuel industry defendants misrepresented the climate change-related risks of their products, which led to destructive hurricanes in 2017 that caused extensive damages. A magistrate judge had recommended in February 2025 that the district court allow Racketeer Influenced and Corrupt Organizations Act (RICO) and antitrust claims to proceed. In its decision dismissing the claims, the district court first found that it could exercise personal jurisdiction over Exxon Mobil Corporation, Shell PLC, BP PLC, Motiva Enterprises LLC, Chevron Corporation, and ConocoPhillips as to all of the municipalities’ claims. The court dismissed all claims against Occidental Petroleum due to insufficient service of process and all claims against Rio Tinto PLC and BHP Group for lack of personal jurisdiction. The court also found that it lacked personal jurisdiction over American Petroleum Institute (API) for the federal antitrust and Puerto Rico law claims but that it had jurisdiction for claims against API under the Racketeer Influenced and Corrupt Organizations Act (RICO). On the merits, the court concluded that claims under RICO, federal antitrust law, and Puerto Rico law were time-barred under the applicable statutes of limitations. The court found that there was “overwhelming evidence of public knowledge of articles, reports, and cases making the connection between Defendants and Plaintiffs’ claims” so that by September 2021, four years after the 2017 hurricanes, the plaintiffs knew or should have known both that they suffered injury and also whom to sue. The court concluded that the continuing tort and related doctrines did not apply; the court also found that equitable tolling based on alleged fraudulent concealment or on more general equitable tolling principles would not apply. The dismissals of claims on jurisdiction and service of process grounds were without prejudice; the dismissals of claims as time-barred were with prejudice.

Lawsuit brought by municipalities in Puerto Rico seeking to hold fossil fuel companies liable for losses resulting from storms during the 2017 hurricane season and ongoing economic losses since 2017.

Municipality of Bayamón v. Exxon Mobil Corp.

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Federal Court Said Puerto Rican Municipalities’ Climate Claims Against Fossil Fuel Industry Were Time-Barred

Filed

United States of America

Puerto Rico

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An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

Risk is the potential for adverse consequences resulting from the dynamic interplay between (climate-related) hazards, exposure, and vulnerability of affected human or ecological systems.

Groups  of people who are adversely affected by climate change or the response to it

A set of principles, processes, and practices that build economic and political power to shift from an extractive economy to a regenerative economy.

Justice is the ethical and political framework that addresses fairness, including issues of responsibility, rights, and structural inequity.

Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

Fossil fuel is a generic term for non-renewable energy sources such as coal, fossil gas, and oil (including crude oil, and petroleum products), that can be used for electricity and heat generation. Fossil fuels are hydrocarbons formed from pressurised and heated organic material buried over millions of years.

Molecules in the atmosphere that play a key role in the greenhouse effect by trapping heat radiating from Earth’s surface.

Area of the economy in which actors engage in identical or related activities.

In human systems, the process of adjustment to actual or expected climate change and its effects, in order to moderate harm, increase resilience or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate change and its effects; human intervention may facilitate adjustment to expected climate change and its effects.

The management and allocation of funds, assets and investments to meet various objectives

People who are less able to respond to the effects of climate change due to having limited financial or physical assets

The processes through which enterprises can identify, prevent, mitigate and account for how they address their actual and potential adverse impacts. Due diligence is the idea that reasonable precautions should be taken to avoid causing harm to people, the environment, or society. It also involves identifying and mitigating risks before they occur.

A company that is owned wholly or partially by the state, typically operating in key sectors.

Either money or something of monetary value is transferred between two or more organisations, people or countries.

Actions or measures to adapt freshwater systems to climate change.

Actions or measures to adapt freshwater, coastal and marine systems to climate change.

Risks to the ecosystem health of the marine environment, including ocean warming, ocean acidification, and ocean deoxygenation, harming biodiversity, species health, ecosystem services, and coastal community livelihoods.

Extreme weather refers to events where a weather variable exceeds (or falls below) a threshold. Meaning it is significantly different from the average or usual weather pattern.

Terrestrial means "of the earth" and relates to the risks to ecological system that includes all living organisms and their interactions within land-based environments, such as forests, grasslands, and deserts.

Air pollution involves harmful contaminants in the air, affecting both indoor and outdoor environments. It can lead to health issues like respiratory diseases and heart problems, and climate impacts such as global warming. Pollutants can damage plants, trees, habitats, and water bodies like rivers and lakes.

Production of electricity and heat from solar irradiation.

Oil is a combustible liquid fossil fuel composed mainly of hydrocarbons, occurring as crude oil and refined into petroleum products such as petrol, diesel and kerosene.

Fossil gas, commonly known as natural gas, is a fossil fuel consisting chiefly of methane with smaller amounts of other hydrocarbons and trace gases, found in underground deposits.

Coal is a combustible sedimentary rock formed from carbonised plant matter, rich in carbon and hydrocarbons, and occurring in several main types including hard coal and brown coal.

Any compulsory, unrequited payment to the government levied on corporations or individuals. This can be for environmental reasons, such as introducing a Carbon tax to set a price that emitters must pay for the greenhouse gases they emit.

Activities of industries that extract natural resources, such as mining, oil, and gas, for commercial use.

The activities of industries that transforms raw materials into finished goods through industrial processes.

The activities of industries involved in the production, distribution, and sale of energy, including electricity, gas, and renewables.

Activities that involve planning, designing and building infrastructure, residential, and commercial structures.

This sector involves the wholesale and retail selling of goods.

This sector creates and distributes information and entertainment through television, radio, print, and digital platforms.

This sector includes firms and individuals offering specialised expertise in fields such as law, accounting, consulting, science and engineering.

Activities of businesses and institutions that provide financial services and products to individuals and organisations.

This sector involves the distribution, treatment, and conservation of water resources.

Slow onset events evolve gradually from incremental changes over many years or from increased frequency or intensity of recurring events. As defined in the Cancun Adaptation Framework (2010), slow onset events include risks and impacts from rising temperatures, desertification, biodiversity loss, land and forest degradation, glacial retreat, ocean acidification, sea level rise, and salinization.

Heavy precipitation refers to any form of weather where substances fall from the sky, including rain, snow, sleet, or hail.

Federal Court Said Puerto Rican Municipalities’ Climate Claims Against Fossil Fuel Industry Were Time-Barred

Policy instrument

Risk

Impacted group

Renewable energy

Fossil fuel

Greenhouse gas

Economic sector

Adaptation/resilience

Finance