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.

Lawsuit seeking to hold Exxon Mobil Corporation liable for violation of the Connecticut Unfair Trade Practices Act in connection with alleged deceptive acts to create uncertainty about climate science.

Connecticut v. Exxon Mobil Corp.

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Second Circuit Said Connecticut’s Climate Case Against Exxon Belonged in State Court

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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

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

The release of heat-trapping gases, primarily from human activities such as burning fossil fuels, agriculture and industry.

A long-lived, colourless gas, chiefly emitted from fossil fuel combustion, deforestation and cement production.

Actions to reduce emissions in energy generation and supply.

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.

People with different national or cultural traditions from the dominant population

Social and cultural groups that share collective ancestral ties to the lands and natural resources where they live, occupy or from which they have been displaced

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 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 activities to move goods and people, alongside the storage of products.

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

Activities of government agencies and institutions that provide public services, enforce laws and manage public resources.

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

Climate change can have a range of impacts on technological system. Extreme weather events can cause infrastructure failures like power outages or damage to roads and bridges, as well as the impacts from waste following natural disasters. Human activities also cause technological impacts, such as the risks posed by oil spillage and leaks.

Any substance with chemical properties that can cause physical harm to people or damage the environment, including ammonia, carbon monoxide, phosphine, chlorine, arsenic, cadmium, mercury, pesticides, dioxins, microplastics, benzene, asbestos, aflatoxins, fluoride, methanol, and toxins from marine sources.

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.

Second Circuit Said Connecticut’s Climate Case Against Exxon Belonged in State Court

Policy instrument

Risk

Impacted group

Renewable energy

Fossil fuel

Greenhouse gas

Economic sector

Finance