A Vermont Superior Court denied fossil fuel defendants’ motions to dismiss the State of Vermont’s action alleging that the defendants violated the Vermont Consumer Protection Act (VCPA) by misrepresenting and concealing fossil fuel products’ contributions to climate change. Vermont alleged three categories of deceptive or unfair acts and practices: (1) climate science disinformation campaigns; (2) deceptive marketing of specific products; and (3) greenwashing campaigns. First, the court found that the State demonstrated a prima facie case of personal jurisdiction against each defendant under Vermont law, citing Vermont Supreme Court and U.S. Supreme Court precedent holding that a forum state may assert personal jurisdiction over companies that deliver their products “into the stream of commerce with the expectation that they will be purchased by consumers” in the state. Second, the court rejected the argument that the “alleged decades-old climate science disinformation campaign falls well outside the statute of limitations” because Vermont consumers should have been aware of the link between fossil fuels and climate change by 2003 at the latest. The court agreed with the State that this action was based not on the link between fossil fuels and climate change but rather on the defendants’ alleged deceptive acts. Regarding the defendants’ arguments that the State failed to state a VCPA claim, the court first concluded that the State sufficiently alleged that the deceptive acts took place “in commerce.” The court also found that determinations of whether defendants’ statements were deceptive or constituted “mere commercial puffery” required further factual development. In addition, the court concluded that the State’s alleged misrepresentations and omissions were material for purposes of the motion to dismiss. In addition, the court found that at this stage, the State had adequately alleged an “agency relationship” between the defendants and American Petroleum Institute (API) as well as the defendants’ direct participation in API’s alleged greenwashing campaigns. The court therefore permitted the State to continue to assert the defendants’ derivative liability based on API statements. The court also concluded that the defendants were not entitled to dismissal on either First Amendment or Commerce Clause grounds. In addition, the court rejected the contention that complaint presented a non-justiciable political question. The court also denied Exxon Mobil Corporation’s request that the court strike Vermont’s request for disgorgement of funds acquired or retained as a result of practices found to be unlawful under the VCPA. The court said the request was premature and, moreover, that Exxon was incorrect that such relief was not authorized.

Consumer protection lawsuit brought by the State of Vermont against fossil fuel companies alleging deceptive and unfair business practices in connection with the companies' sale of their products.

Vermont v. Exxon Mobil Corp.

<p>This entry was provided by the Sabin Center for Climate Change Law. Please see the terms of use for citation and licensing of third party data.</p>

Vermont Trial Court Denied Motions to Dismiss State’s Consumer Protection Claims Against Fossil Fuel Companies

Filed

United States of America

Vermont

The Climate Litigation Database

Find climate change litigation data and indicators for {text}.

{text} litigation

Sabin Center for Climate Change Law provides Climate Litigation Database, a comprehensive database of US and Global climate change caselaw

Quickly and easily search through the complete text of thousands of climate change law and policy documents from every country.

Search the Climate Litigation Database

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

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.

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.

Kinetic energy of airflow transformed into useful energy, mostly electrical energy.

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.

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.

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.

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.

Vermont Trial Court Denied Motions to Dismiss State’s Consumer Protection Claims Against Fossil Fuel Companies

Risk

Renewable energy

Fossil fuel

Greenhouse gas

Economic sector

Finance