Amicus Curiae Brief — Suncor Energy (U.S.A.) Inc., et al., Petitioners v. Board of County Commissioners of Boulder County, et al.
Supreme Court briefJul 11, 2022
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No. 21-1550
IN THE
Supreme Court of the United States
SUNCOR ENERGY (U.S.A.) INC., ET AL.,
Petitioners,
v.
BOARD OF COUNTY COMMISSIONERS OF
BOULDER COUNTY ET AL.,
Respondents.
On Petition for a Writ of Certiorari
to the United States Court of Appeals
for the Tenth Circuit
BRIEF FOR THE CHAMBER OF COMMERCE
OF THE UNITED STATES OF AMERICA
AS AMICUS CURIAE
SUPPORTING PETITIONERS
ANDREW R. VARCOE
STEPHANIE A. MALONEY
U.S. CHAMBER
LITIGATION CENTER
1615 H Street, NW
Washington, DC 20062
July 11, 2022
WILLIAM M. JAY
Counsel of Record
ANDREW KIM
GOODWIN PROCTER LLP
1900 N Street, NW
Washington, DC 20036
wjay@goodwinlaw.com
(202) 346-4000
TABLE OF CONTENTS
PAGE
INTEREST OF THE AMICUS CURIAE.................... 1
SUMMARY OF ARGUMENT ..................................... 2
ARGUMENT ............................................................... 4
I.
II.
This Court should grant certiorari on
the first question presented to reconcile
conflicting decisions on whether federal
common law applies to claims based on
alleged global emissions. .................................. 4
A.
Federal common law governs
where a dispute implicates
interstate and international
interests.................................................. 6
B.
Displacement does not cause a
federal-common-law claim
regarding global climate change
to lose its federal “character.”.............. 11
C.
The practical problems created by
allowing inherently federal
claims for climate change to be
recast as state-law claims will
only worsen without immediate
review. .................................................. 13
This Court should grant certiorari on
the second question presented to resolve
the split over the use of artful pleading
to conceal claims governed by federal
common law. ................................................... 16
CONCLUSION .......................................................... 23
i
TABLE OF AUTHORITIES
PAGE(S)
CASES
Am. Elec. Power Co. v. Connecticut,
564 U.S. 410 (2011) ................. 8, 9, 10, 12, 20, 21
Banco Nacional de Cuba v. Sabbatino,
376 U.S. 398 (1964) ............................................. 7
Caterpillar Inc. v. Williams,
482 U.S. 386 (1987) ........................................... 16
City of Milwaukee v. Illinois (Milwaukee II),
451 U.S. 304 (1981) ..................... 7, 10, 11, 12, 13
City of N.Y. v. BP P.L.C.,
325 F. Supp. 3d 466 (S.D.N.Y. 2018) .................. 9
City of N.Y. v. Chevron Corp.,
993 F.3d 81 (2d Cir. 2021) .................... 12, 15, 20
Cnty. of Oneida v.
Oneida Indian Nation of N.Y.,
470 U.S. 226 (1985) ............................................. 7
Erie R. Co. v. Tompkins,
304 U.S. 64 (1938) ............................................... 6
Federated Dep’t Stores, Inc. v. Moitie,
452 U.S. 394 (1981) ........................................... 22
Franchise Tax Bd. v. Constr. Laborers
Vacation Tr. for S. Cal.,
463 U.S. 1 (1983) ............................................... 16
ii
Fry v. Napoleon Cmty. Schs.,
137 S. Ct. 743 (2017) ......................................... 17
Grable & Sons Metal Prods, Inc. v.
Darue Eng'g and Mfg.,
545 U.S. 308 (2005) ........................................... 21
Hinderlider v. La Plata River &
Cherry Creek Ditch Co.,
304 U.S. 92 (1938) ..................................... 7, 8, 12
Holmes Grp., Inc. v. Vornado Air
Circulation Sys., Inc.,
535 U.S. 826 (2002) ..................................... 19, 20
Illinois v. City of Milwaukee (Milwaukee I),
406 U.S. 91 (1972) ................. 6, 7, 8, 9, 18, 19, 22
Illinois v. Outboard Marine Corp.,
680 F.2d 473 (7th Cir. 1982) ............................. 12
Int’l Paper Co. v. Ouellette,
479 U.S. 481 (1987) ..................................... 10, 19
Kansas v. Colorado,
206 U.S. 46 (1907) ............................................... 7
Nat’l Farmers Union Ins. Cos. v.
Crow Tribe of Indians,
471 U.S. 845 (1985) ......................................... 4, 9
Native Vill. of Kivalina v.
ExxonMobil Corp.,
696 F.3d 849 (9th Cir. 2012) ................... 8, 12, 13
iii
New SD, Inc. v. Rockwell Int’l Corp.,
79 F.3d 953 (9th Cir. 1996) ............................... 18
North Carolina ex rel. Cooper v.
Tenn. Valley Auth.,
615 F.3d 291 (4th Cir. 2010) ............................. 11
OBB Personenverkehr AG v. Sachs,
577 U.S. 27 (2015) ............................................. 17
In re Otter Tail Power Co.,
116 F.3d 1207 (8th Cir. 1997) ........................... 18
Provincial Gov’t of Marinduque v.
Placer Dome, Inc.,
582 F.3d 1083 (9th Cir. 2009) ............................. 7
Rivet v. Regions Bank of La.,
522 U.S. 470 (1998) ........................................... 22
Rodriguez v. FDIC,
140 S. Ct. 713 (2020) ..................................... 6, 20
Sam L. Majors Jewelers v. ABX, Inc.,
117 F.3d 922 (5th Cir. 1997) ..................... 6, 7, 18
Ohio ex rel. Skaggs v. Brunner,
629 F.3d 527 (6th Cir. 2010) ............................. 21
Sola Elec. Co. v. Jefferson Elec. Co.,
317 U.S. 173 (1942) ............................................. 6
Tex. Indus., Inc. v. Radcliff Materials, Inc.,
451 U.S. 630 (1981) . 7, 8, 9, 11, 12, 18, 19, 20, 21
iv
Treiber & Straub, Inc. v. UPS, Inc.,
474 F.3d 379 (7th Cir. 2007) ............................... 7
Ungaro-Benages v. Dresdner Bank AG,
379 F.3d 1227 (11th Cir. 2004) ........................... 7
United Jersey Banks v. Parell,
783 F.2d 360 (3d Cir. 1986) ........................ 17, 18
Wheeldin v. Wheeler,
373 U.S. 647 (1963) ........................................... 20
World-Wide Volkswagen Corp. v. Woodson,
444 U.S. 286 (1980) ............................................. 8
OTHER AUTHORITIES
Wright & Miller,
14C Fed. Prac. & Proc. Juris. § 3722.1
(4th ed. 2022)..................................................... 17
Wright & Miller,
19 Fed. Prac. & Proc. Juris. § 4514
(4th ed. 2022)....................................................... 7
15A Moore’s Fed. Practice—Civil § 103.43
(2022) ................................................................. 21
U.S. Chamber of Commerce, The Chamber’s
Climate Position: ‘Inaction is Not an
Option’,
https://www.uschamber.com/climatechange/the-chambers-climate-positioninaction-is-not-an-option .................................... 2
v
Press Release, Sen. Sheldon Whitehouse,
New Bipartisan, Bicameral Proposal
Targets Industrial Emissions for
Reduction (July 25, 2019),
https://www.whitehouse.
senate.gov/news/release/new-bipartisanbicameral-proposal-targets-industrialemissions-for-reduction ...................................... 1
vi
INTEREST OF THE AMICUS CURIAE1
The Chamber of Commerce of the United States of
America is the world’s largest business federation. It
represents approximately 300,000 direct members and
indirectly represents the interests of more than three
million companies and professional organizations of
every size, in every industry sector, and from every
region of the country. An important function of the
Chamber is to represent the interests of its members in
matters before Congress, the Executive Branch, and
the courts. To that end, the Chamber often files
amicus curiae briefs in cases, like this one, that raise
issues of concern to the nation’s business community.
The Chamber has a strong interest in legal and
policy issues relating to climate change. The global
climate is changing, and human activities contribute to
these changes. There is much common ground on
which all sides could come together to address climate
change with policies that are practical, flexible,
predictable, and durable. The Chamber believes that
durable climate policy must be made by Congress,
which should both encourage innovation and
investment to ensure significant emissions reductions
and avoid economic harm for businesses, consumers,
and disadvantaged communities. See, e.g., Press
Release, Sen. Sheldon Whitehouse, New Bipartisan,
Bicameral Proposal Targets Industrial Emissions for
Reduction (July 25, 2019), https://www.whitehouse.
senate.gov/news/release/new-bipartisan-bicameral1 All parties have consented to the filing of this brief. Amicus
curiae timely provided notice of intent to file this brief to all
parties. No counsel for any party authored this brief in whole or
in part, and no entity or person, aside from amicus curiae, its
members, or its counsel, made any monetary contribution
intended to fund the preparation or submission of this brief.
1
2
proposal-targets-industrial-emissions-for-reduction
(reporting the Chamber’s support for the bipartisan
Clean Industrial Technology Act). U.S. climate policy
should recognize the urgent need for action, while
maintaining the national and international
competitiveness of U.S. industry and ensuring
consistency with free enterprise and free trade
principles. See U.S. Chamber of Commerce, The
Chamber’s Climate Position: ‘Inaction is Not an
Option’, https://www.uschamber.com/climate-change/
the-chambers-climate-position-inaction-is-not-an-opt
ion. Governmental policies aimed at achieving these
goals should not be made by the courts, much less by a
patchwork of actions under state common law.
Under this Court’s precedent, cases involving
“uniquely federal interests,” for which a uniform
federal policy is necessary, should be decided under
federal common law.
In the limited range of
circumstances in which such uniquely federal interests
arise, the relevant legal questions often intersect with
the interests of many of the Chamber’s members, who
rely on the predictability and uniformity of federal
policy. This case presents an example of a court
veering from this Court’s precedent and allowing a
claim about global emissions—for which no State can
claim a superior tie or interest—to be decided by a
single state’s law. The Chamber has an interest in
ensuring that claims for which a uniform federal
standard is necessary, because of their interstate or
international aspects, are heard in federal court.
SUMMARY OF ARGUMENT
I. Federal common law applies in the limited
instances where “uniquely federal interests” leave no
room for state law to apply. Cross-border claims
3
implicating the interests of more than one State or of a
foreign sovereign—such as an interstate water
dispute—constitute a paradigmatic example of such an
instance. Respondents’ claims, which are founded on
allegations regarding the effects of global climate
change, naturally implicate both interstate and
international interests, and thus are subject to federal
common law. State nuisance laws, which are intended
to resolve localized problems, are a poor match for
global climate issues. That is true even if the claims
purport to concern the localized effects resulting from
such issues.
The court of appeals concluded that even if federal
common law governed respondents’ claims, the claims
did not “arise under” federal law because the Clean Air
Act displaced federal common law, and the state-law
claims were not completely preempted by the Act. Pet.
App. 30a-31a. But the court of appeals failed to
recognize what the Second Circuit acknowledged in
addressing similar claims of harm arising from climate
change: federal common law applies because state law
cannot, and state laws do not gain competence to
address issues that demand a unified federal standard
simply because any ability to win relief under federal
common law has been displaced. Displacement affects
remedies, not jurisdiction; the fact that a remedy
afforded by federal common law has been displaced by
federal statute does not mean state law is suitable to
decide the claim.
This Court should grant certiorari to resolve the
split over whether federal common law applies to
claims seeking liability for the local impact of global
climate change (thereby giving rise to federal
jurisdiction). State-court cases applying local law to
claims about an international issue are already well
4
underway. Unless the Court intervenes now, a
patchwork of disparate state-law decisions—which
federal common law exists to prevent—will soon
emerge.
II. This Court should also grant certiorari to
address the conflict regarding whether a plaintiff may
evade federal jurisdiction by artfully pleading their
federal common law claims as state common law
claims. Plaintiffs may be the masters of their
complaint, but this Court has repeatedly reaffirmed
the principle that a plaintiff cannot frustrate federal
jurisdiction by characterizing an inherently federal
claim as a state-law claim.
The court of appeals determined that “artful
pleading” is limited to only those cases where a statelaw claim is completely preempted by a federal statute.
As other courts of appeals have recognized, artful
pleading is not so limited. None of the principles
underlying the well-pleaded-complaint rule supports
such a narrow construction of artful pleading.
For these reasons, and those set forth below, this
Court should grant the petition.
ARGUMENT
I. This Court should grant certiorari on the
first question presented to reconcile conflicting decisions on whether federal common law applies to claims based on alleged
global emissions.
Federal courts may consider any claim arising
under federal law, including federal common law.
Nat’l Farmers Union Ins. Cos. v. Crow Tribe of Indians,
471 U.S. 845, 850, 852 (1985). While federal common
law is limited in scope, common-law claims arising
5
from a transboundary dispute that implicates the
interests of more than one State or other sovereign
must, by necessity, arise under federal common law,
because a single state’s law cannot adequately
reconcile competing sovereign interests in resolving the
claim. For decades, this Court has identified claims
regarding the air and water in their “ambient and
interstate aspects” as entailing the sort of dispute fit
for the application of federal common law. Because
emissions cross state and national borders, a single
state’s law of public nuisance cannot resolve an
emissions dispute like this one. Such a nationally and
internationally significant dispute necessarily arises
under federal common law and belongs in federal
court.
The court of appeals nevertheless incorrectly held
that respondents’ purported state-common-law claims
of nuisance allegedly caused by global emissions
should proceed in state court. To the extent that
federal common law would ordinarily apply, the court
reasoned, the Clean Air Act displaced it—but did not
displace or completely preempt respondents’ state-law
claims. Pet. App. 29a-31a.
The Tenth Circuit’s reasoning was flawed in three
respects. First, to the extent that the court of appeals
doubted whether federal common law applies to
respondents’ claims, Pet. App. 29a n.5, this Court’s
decisions extending the application of the common law
to “air and water in their ambient or interstate
aspects” resolve any such doubts. Second, where
federal common law applies, state law does not—and
cannot. Thus, even if a federal statute prevents a
plaintiff from obtaining a remedy available under
federal common law, that does not make the claim any
less “federal” in character. Finally, the court of
6
appeals erred in treating displacement as an issue
affecting jurisdiction, not remedies.
A. Federal common law governs where a
dispute implicates interstate and international interests.
1. “There is no federal general common law,” Erie
R. Co. v. Tompkins, 304 U.S. 64, 78 (1938) (emphasis
added), but federal courts may “fashion federal law” in
limited areas “where federal rights are concerned.”
Illinois v. City of Milwaukee (Milwaukee I), 406 U.S.
91, 103 (1972) (citation omitted). Erie does not undermine this principle. Indeed, on “the same day Erie was
decided, the Supreme Court released an opinion in
which Justice Brandeis, the author of Erie, relied upon
federal common law to resolve a case.” Sam L. Majors
Jewelers v. ABX, Inc., 117 F.3d 922, 927 n.8 (5th Cir.
1997) (citing Hinderlider v. La Plata River & Cherry
Creek Ditch Co., 304 U.S. 92 (1938)).
Courts typically apply federal common law in cases
presenting one (or more) of three characteristics. First,
federal common law applies in cases where “common
lawmaking must be ‘necessary to protect uniquely federal interests.’” Rodriguez v. FDIC, 140 S. Ct. 713, 717
(2020) (quoting Tex. Indus., Inc. v. Radcliff Materials,
Inc., 451 U.S. 630, 640 (1981)). Second, federal common law is used in “those areas of judicial decision
within which the policy of the law is so dominated by
the sweep of federal statutes that legal relations which
they affect must be deemed governed by federal law
having its source in those statutes, rather than by local
law.” Sola Elec. Co. v. Jefferson Elec. Co., 317 U.S. 173,
173-74 (1942). Finally, federal common law applies
“[w]hen Congress has not spoken to a particular issue,”
7
City of Milwaukee v. Illinois (Milwaukee II), 451 U.S.
304, 313 (1981), but federal policy calls for a “uniform
standard.” Milwaukee I, 406 U.S. at 107 n.9 (citation
omitted).
Several types of cross-border disputes—particularly
those that implicate the interests of more than one
State or sovereign—present “uniquely federal interests” that require the application of a federal common
law because state law cannot govern. Courts have applied federal common law in cases involving interstate
water disputes,2 tribal land rights,3 interstate air carrier liability,4 and foreign relations.5 In such cases,
federal common law is necessary because “local law
will not be sufficiently sensitive to federal concerns, it
is not likely to be uniform across state lines, and it will
develop at various rates of speed in different states.”
Wright & Miller, 19 Fed. Prac. & Proc. Juris. § 4514
(4th ed. 2022). Moreover, the structure of the Constitution does not allow States to engage in such crossborder regulation. Tex. Indus., 451 U.S. at 641 (“In
these instances, our federal system does not permit the
controversy to be resolved under state law….”); see
2 Hinderlider, 304 U.S. at 110; Kansas v. Colorado, 206 U.S. 46, 95
(1907).
3 Cnty. of Oneida v. Oneida Indian Nation of N.Y., 470 U.S. 226,
235-36 (1985).
4 Treiber & Straub, Inc. v. UPS, Inc., 474 F.3d 379, 384 (7th Cir.
2007) (discussing the Fifth Circuit’s “extensive analysis of the history of federal common law liability of common carriers” in Sam L.
Majors, 117 F.3d at 922).
5 Banco Nacional de Cuba v. Sabbatino, 376 U.S. 398, 427 (1964);
Provincial Gov’t of Marinduque v. Placer Dome, Inc., 582 F.3d
1083, 1088 (9th Cir. 2009); Ungaro-Benages v. Dresdner Bank AG,
379 F.3d 1227, 1233 (11th Cir. 2004).
8
World-Wide Volkswagen Corp. v. Woodson, 444 U.S.
286, 293 (1980) (the “sovereignty of each state … implie[s] a limitation on the sovereignty of its sister
States”).
Cases about global emissions, like this one, squarely give rise to the concerns that necessitate federal
common law. Accordingly, “[w]hen we deal with air
and water in their ambient or interstate aspects, there
is a federal common law.” Milwaukee I, 406 U.S. at
103 (citing Texas v. Pankey, 441 F.2d 236 (10th Cir.
1971)); accord Am. Elec. Power Co. v. Connecticut
(“AEP”), 564 U.S. 410, 421 (2011); see also Hinderlider,
304 U.S. at 110 (apportionment of interstate stream “is
a question of ‘federal common law’”). “Environmental
protection” is, after all, “an area ‘within national legislative power,’” and thus, it is appropriate for federal
courts to “fill in ‘statutory interstices,’ and, if necessary, even ‘fashion federal law.’” AEP, 564 U.S. at 421
(citation omitted). As this Court has recognized, allowing states to apply their own varying common-law rules
to environmental concerns crossing state lines would
mean “more conflicting disputes, increasing assertions
and proliferating contentions” about the standards for
adjudging claims of “improper impairment.” Milwaukee I, 406 U.S. at 107 n.9 (quoting Pankey, 441 F.2d at
241-42).
Because claims regarding transboundary emissions
implicate “uniquely federal interests,” “our federal system does not permit the controversy to be resolved under state law,” as the “interstate or international nature of the controversy makes it inappropriate for state
law to control.” Tex. Indus., 451 U.S. at 640-41 & n.13;
Native Vill. of Kivalina v. ExxonMobil Corp., 696 F.3d
849, 855 (9th Cir. 2012) (“[F]ederal common law can
9
apply to transboundary pollution suits.”). And where,
as here, a claim falls within an area that is exclusively
federal in nature, the case falls within federal jurisdiction. Nat’l Farmers, 471 U.S. at 850, 852.
2. Climate change is an international and interstate phenomenon. In order for climate change to occur, as alleged by respondents here, myriad events
caused by myriad actors must occur all around the
world. See Pet. App. 109a (agreeing with the premise
that claims similar to the respondents’ are “based on a
broad array of conduct … all of which occurred globally” (citation and internal quotation marks omitted));
City of N.Y. v. BP P.L.C., 325 F. Supp. 3d 466, 472
(S.D.N.Y. 2018), aff’d sub nom. City of N.Y. v. Chevron
Corp., 993 F.3d 81 (2d Cir. 2021).
Respondents’ claims are thus not only about “air
and water in their ambient or interstate aspects,” a
quality that “undoubtedly” calls for the application of
federal common law, AEP, 564 U.S. at 421 (citation
omitted); Milwaukee I, 406 U.S. at 103, they also implicate foreign policy and the United States’ sovereign interests, which, too, call out for federal common law.
Tex. Indus., 451 U.S. at 641 (identifying instances
where “our federal system does not permit [a] controversy to be resolved under state law, … because the interstate or international nature of the controversy
makes it inappropriate for state law to control”).
Respondents’ claims turn on an allegation of global
climate change; accordingly, state and local governments cannot claim some unique tie to the phenomenon. Some commercial activity may happen within a
particular state or locality’s borders, but that localized
activity is not the basis of the plaintiff-governments’
10
claims. And the localized activity hardly justifies allowing the law of one state to decide a sweeping claim
concerning emissions that cross state and national
borders. After all, none of the governmental entities
claims that what happened in their respective jurisdictions caused the alleged harm of global warming. Nor
could they do so: as this Court explained in AEP,
“emissions in New Jersey may contribute no more to
flooding in New York than emissions in China.” 564
U.S. at 422.
The Tenth Circuit’s decision favoring the application of state law over federal common law encourages a
patchwork of outcomes arising under disparate state
laws, which are poor frameworks for “regulat[ing] the
conduct of out-of-state sources.” Int’l Paper Co. v.
Ouellette, 479 U.S. 481, 495 (1987). Allowing claims
about global emissions to be decided by the varied laws
of the 50 states would lead to fragmentation of judicial
decisionmaking that in turn would hinder a coordinated and effective federal response to climate change.
That inevitable fragmentation would be exacerbated by
plaintiffs’ reliance on theories of public nuisance in asserting their claims. Public nuisance is an amorphous
cause of action, “often vague and indeterminate.” Milwaukee II, 451 U.S. at 317.
Even if every state were to use the same standard
of public nuisance—which is extremely unlikely—state
courts would still disagree as to what the articulated
standard requires, and how to account for the State’s
sovereign interests. A coastal state may, for example,
view public nuisance caused by water pollution differently than a landlocked state. Leaving state courts to
adjudicate disputes about interstate emissions based
on “the vagaries of public nuisance doctrine” would on-
11
ly make it “increasingly difficult for anyone to determine what standards govern.” North Carolina ex rel.
Cooper v. Tenn. Valley Auth., 615 F.3d 291, 298 (4th
Cir. 2010).
B. Displacement does not cause a federalcommon-law claim regarding global climate change to lose its federal “character.”
The court of appeals concluded that respondents’
claims do not “arise under” federal common law for jurisdictional purposes because the Clean Air Act displaces federal common law governing cross-border
emissions, and thus, complete preemption is “the sole
path for federal removal jurisdiction.” Pet. App. 28a30a.
But the court of appeals’ reasoning cannot be
squared with this Court’s rule that, where federal
common law arises, state law cannot govern. Tex. Indus., 451 U.S. at 641 & n.13 (federal common law governs where the nature of the claim “makes it inappropriate for state law to control”); Milwaukee II, 451 U.S.
at 313 n.7 (“[I]f federal common law exists, it is because state law cannot be used.”). Congress’s decision
to displace any right to sue under federal common law
does not make state law capable of resolving interstate
disputes.
As the Second Circuit explained in rejecting a climate-nuisance action similar to respondents’—using
reasoning that conflicts with the Tenth Circuit’s reasoning here, Pet. 11-15—the notion that a state-law
claim lies dormant and may “snap back into action”
once federal law is displaced is “difficult to square with
the fact that federal common law governed [the] issue
12
in the first place.” New York, 993 F.3d at 98. When a
federal statute displaces federal common law, it eliminates the causes of action or remedies that might have
been available under common law—“our federal system” does not allow state-law claims into an area that
is exclusively federal in character. Tex. Indus., 451
U.S. at 641. Thus, for example, a State may surrender
its federal common-law cause of action over water
rights in an interstate compact. See Hinderlider, 304
U.S. at 104-05. But that does not invite state-law
causes of action that otherwise are plainly displaced by
federal common law. See id. at 110.
After discussing the Ninth Circuit’s decision in Kivalina, the court of appeals here concluded that because “the federal common law of nuisance that formerly governed transboundary pollution suits no longer exists due to Congress’s displacement of that law
through the CAA,” the displaced federal common law
claim cannot give rise to federal-question jurisdiction.
Pet. App. 29a-30a. But the court of appeals’ analysis
incorrectly treats displacement as an issue of jurisdiction, not remedies. In AEP, for example, this Court
explained that the scope of the displacement was to be
determined by the “reach of remedial provisions” available in the displacing statute. 564 U.S. at 425 (citing
Cnty. of Oneida, 470 U.S. at 237-39); see also Milwaukee II, 451 U.S. at 332 (observing that Congress’s
changes to the Clean Water Act meant that “no federal
common-law remedy was available”); Illinois v. Outboard Marine Corp., 680 F.2d 473, 476 (7th Cir. 1982)
(statutory displacement of “the federal common law
remedy for nuisances resulting from discharges of pollutants”). Kivalina itself conceptualizes statutory displacement as the displacement of causes of action or
13
remedies, not of federal jurisdiction. 696 F.3d at 856
(displacement means that federal common law “does
not provide a remedy”); id. at 857 (“displacement of a
federal common law right of action means displacement of remedies.”).
Thus, displacement concerns “whether the field has
been occupied, not whether it has been occupied in a
particular manner.” Milwaukee II, 451 U.S. at 324.
When a state law claim is impermissible because of the
federal nature of the interests at stake, and federal
common law is displaced by a federal statute, the case
continues to arise under federal law and establish federal jurisdiction. The fact that federal common law
provides no remedy does not make the interests at
stake any less federal; it means only that Congress has
exercised its right to make rules for an exclusively federal area, and has elected not to create a remedy in
that space.
Here, the claims concerning interstate emissions do
not become any less “interstate” simply because an environmental statute displaces remedies under federal
common law. The court of appeals’ reasoning looks
nothing like displacement by Congress; it is replacement of Congress—by state courts.
C. The practical problems created by allowing inherently federal claims for climate
change to be recast as state-law claims
will only worsen without immediate review.
In 2017 and 2018, 13 state and local governments,
including respondents, filed lawsuits in their respective
home state courts against petitioners, alleging that petitioners created both a public and a private nuisance
14
under state law by “producing, promoting, refining,
marketing and selling a substantial amount of fossil
fuels used at levels sufficient to alter the climate.”6
C.A. App. 173 ¶ 445. Respondents’ allegations are both
international and interstate in scope. They allege that
the fossil fuels cause, or at least contribute to, rising
sea levels induced by climate change. C.A. App. 151
¶ 344. Respondents seek to impose liability for emissions for fossil fuels produced and consumed as far
back as the late 1980s. C.A. App. 92 ¶ 82 & n.8. They
do not assert (nor could they) that these emissions occurred exclusively—or even substantially—within their
respective borders. Instead, respondents seek to hold
petitioners liable for conduct that occurred all over the
world, “including in Colorado.” C.A. App. 103 ¶ 127;
C.A. App. 147 ¶ 325. State and local governments like
respondents seek to connect petitioners to their respective jurisdictions by pointing to the injuries allegedly
6 Rhode Island v. Chevron Corp., No. PC-2018-4716 (R.I. Super.
Ct. July 2, 2018); King Cnty. v. BP p.l.c., No. 18-2-11859-0 (Wash.
Super. Ct. May 9, 2018); Bd. of Cnty. Comm’rs of Boulder Cnty. v.
Suncor Energy (U.S.A.) Inc., No. 2018CV030349 (Colo. Dist. Ct.
Apr. 17, 2018) (on behalf of Boulder County, San Miguel County,
and the City of Boulder); City of Richmond v. Chevron Corp., No.
C18-00055 (Cal. Super. Ct. Jan. 22, 2018); Mayor & City Council
of Balt. v. BP p.l.c., No. 24-C-18-004219 (Md. Cir. Ct. July 20,
2018); City of Imperial Beach v. Chevron Corp., No. C17-01227
(Cal. Super. Ct. July 17, 2017); Cnty. of Marin v. Chevron Corp.,
No. CIV1702586 (Cal. Super. Ct. July 17, 2017); Cnty. of San
Mateo v. Chevron Corp., No. 17CIV03222 (Cal. Super. Ct. July 17,
2017); City of Santa Cruz v. Chevron Corp., No. 17CV03243 (Cal.
Super. Ct. Dec. 20, 2017); Cnty. of Santa Cruz v. Chevron Corp.,
No. 17CV03242 (Cal. Super. Ct. Dec. 20, 2017); Cal. ex rel. Herrera
v. BP p.l.c., No. CGC-17-561370 (Cal. Super. Ct. Sept. 19, 2017)
(San Francisco); Cal. ex rel. Oakland City Att’y v. BP p.l.c., No.
RG17875889 (Cal. Super. Ct. Sept. 19, 2017) (Oakland).
15
caused there by global emissions from fossil fuels—
specifically, the use and combustion of those fuels.
E.g., C.A. App. 148 ¶ 327. In other words, they seek to
frame a global problem as a local nuisance.
Several of these cases have gone to-and-from (and
back to) state court, and they are now moving ahead on
the merits while the legal landscape regarding the removability of such cases remains unsettled. The First,
Fourth, Ninth, and Tenth Circuits have directed that
climate-change nuisance claims brought by state and
local governments should be remanded to state court,7
while the Third and Eighth Circuits are actively considering whether federal common law governs nuisance
claims based on global emissions, and thus provides a
basis for federal-question jurisdiction and removal.8
And new cases continue to pile on.9
7 Rhode Island v. Shell Oil Prods. Co., No. 19-1818, 2022 WL
1617206 (1st Cir. May 23, 2022); Mayor & City Council of Balt. v.
BP P.L.C., 31 F.4th 178 (4th Cir. 2022); City of Oakland v. BP plc,
969 F.3d 895 (9th Cir. 2020), cert. denied, 141 S. Ct. 2776 (2021);
Pet. App. 1a.
8 Minnesota v. Am. Petroleum Inst., No. 21-1752 (8th Cir. argued
Mar. 15, 2022); City of Hoboken v. Chevron Corp., No. 21-2728 (3d
Cir. argued June 21, 2022); Delaware v. BP America, Inc., No. 221096 (3d Cir. argued June 21, 2022). While the Second Circuit
has held that federal common law governs nuisance claims, purportedly brought under state law, relating to global climate
change, City of N.Y., 993 F.3d at 81, it is currently considering in
Connecticut v. Exxon Mobil Corp., No. 21-1446 (2d Cir.), whether
the application of federal common law in such a case gives rise to
federal removal jurisdiction.
9 Anne Arundel Cnty. v. BP P.L.C., No. 21-cv-1423 (D. Md.); City of
Annapolis v. BP P.L.C., No. 21-cv-772 (D. Md.); City of Charleston
v. Brabham Oil Co., No. 20-cv-3579 (D.S.C.); Dist. of Columbia v.
16
In the meantime, federal courts are left with no
clear direction on whether federal common law governs
claims regarding the local effects of global climate
change, and whether the application of federal common
law generally provides a basis for removal jurisdiction.
And because several cases have since been remanded
back to state court, a patchwork of decisions resolving
interstate pollution claims under disparate state laws
will soon begin to emerge, further complicating—
perhaps irreversibly—federal efforts to combat climate
change. To resolve the question whether federal common law applies to claims of global climate change, this
Court should grant certiorari now, before the effects of
an individualized, state-by-state approach begin to
take hold.
II. This Court should grant certiorari on the
second question presented to resolve the
split over the use of artful pleading to conceal claims governed by federal common
law.
A. Under the well-pleaded complaint rule, “federal
jurisdiction exists only when a federal question is presented on the face of the plaintiff’s properly pleaded
complaint.” Caterpillar Inc. v. Williams, 482 U.S. 386,
392 (1987). But an “independent corollary” of the rule
is that “a plaintiff may not defeat removal by omitting
to plead necessary federal questions in a complaint.”
Franchise Tax Bd. v. Constr. Laborers Vacation Tr. for
S. Cal., 463 U.S. 1, 22 (1983) (citation omitted). Thus,
a plaintiff may be the “master of his complaint” and
ordinarily may choose to bring a state-law claim in
Exxon Mobil Corp., No. 20-1932 (D.D.C.); Vermont v. Exxon Mobil
Corp., No. 21-cv-260 (D. Vt.).
17
state court, but he cannot deliberately disguise an “inherently federal cause of action.” Wright & Miller, 14C
Fed. Prac. & Proc. Juris. § 3722.1 (4th ed. 2022).
Where a plaintiff obscures the inherently federal nature of her claim, the plaintiff’s case is removable to
federal court. United Jersey Banks v. Parell, 783 F.2d
360, 367 (3d Cir. 1986) (noting “ample precedent”
demonstrating that federal jurisdiction lies where “the
state claim pleaded is ‘really one’ of federal law” (citation omitted)).
In other jurisdictional contexts, this Court has
looked to the “gravamen” of the complaint, not just to
the label the plaintiff attaches, to determine whether
the complaint invokes federal jurisdiction. OBB Personenverkehr AG v. Sachs, 577 U.S. 27, 35-36 (2015)
(looking not just at how the plaintiff “recast[s]” her
negligence claims, but instead at the “‘essentials’ of her
suit,” to determine whether jurisdiction existed under
the Foreign Sovereign Immunities Act (citation omitted)); see also Fry v. Napoleon Cmty. Schs., 137 S. Ct.
743, 755 (2017) (courts must look to the “gravamen” of
the plaintiff’s complaint and “set[] aside any attempts
at artful pleading” to determine whether the plaintiff’s
claim requires exhaustion under federal law). What
matters is “substance, not surface”: “[t]he use (or nonuse) of particular labels and terms is not what matters.” Fry, 137 S. Ct. at 755. Focusing on the “gravamen” of a complaint, rather than whether a plaintiff
used or avoided the right “magic words,” ensures that a
plaintiff cannot manipulate federal jurisdiction
“through artful pleading.” Id. (citation omitted).
The rule is no different in the narrow but important
circumstances where a claim is inherently federal; in
those situations, casting the claim in different lan-
18
guage does not make it arise under different law. One
such inherently federal claim recognized by several
courts of appeals is a common law cause of action governed by a uniform federal decisional standard, which
the Tenth Circuit disavowed here by limiting artful
pleading to complete preemption.10 Pet. App. 20a-21a.
Where the claim arises in an area that is governed exclusively by federal law, a plaintiff cannot “deny a defendant a federal forum” by artfully pleading “a federal
claim … as a state law claim.” United Jersey, 783 F.2d
at 367. Thus, a federal common law claim may be
readily apparent from the “essentials” of a complaint if
the allegations involve matters such as “air and water
in their ambient or interstate aspects,” Milwaukee I,
406 U.S. at 103, or other “especial federal concerns to
which federal common law applies,” such as “the rights
and obligations of the United States,” or “the conflicting rights of States or our relations with foreign nations.” Tex. Indus., 451 U.S. at 641 & n.13. In those
areas where “especial federal concern[s]” are implicated, the only claim that can be pleaded is a federal one,
as federal common law governs where the nature of the
10 Sam L. Majors, 117 F.3d at 924, 929 (holding, in a breach-ofcontract dispute originally brought under state law, that “if the
cause of action arises under federal common law principles, jurisdiction may be asserted”); In re Otter Tail Power Co., 116 F.3d
1207, 1214-15 (8th Cir. 1997) (reversing district court’s order remanding case to state court, holding that case presented a federal
question because it “raise[d] important questions of federal law,”
including “the federal common law of inherent tribal sovereignty”); New SD, Inc. v. Rockwell Int’l Corp., 79 F.3d 953, 954-55 (9th
Cir. 1996) (noting in case originally brought under state contract
law that, “on government contract matters having to do with national security, state law is totally displaced by federal common
law” and “it follows that the question arises under federal law,
and federal question jurisdiction exists”).
19
claim “makes it inappropriate for state law to control.”
Tex. Indus., 451 U.S. at 641 & n.13. That claim can be
governed only by the laws of the United States and
thus is properly brought in federal court. See Milwaukee I, 406 U.S. at 100.
B. The “longstanding policies” justifying the application of the well-pleaded complaint rule support allowing the removal of federal-common-law claims: (1)
respect for the plaintiff’s deliberate choice to “eschew[]
claims based on federal law, … to have the cause heard
in state court”; (2) avoiding the radical expansion of
“the class of removable cases, contrary to the ‘[d]ue regard for the rightful independence of state governments’”; and (3) preventing the “undermin[ing] [of] the
clarity and ease of administration of the well-pleadedcomplaint doctrine, which serves as a ‘quick rule of
thumb’ for resolving jurisdictional conflicts.” Holmes
Grp., Inc. v. Vornado Air Circulation Sys., Inc., 535
U.S. 826, 831-32 (2002) (citations omitted).
First, a plaintiff cannot invoke the prerogative to
choose the law and forum when the plaintiff alleges a
common-law claim that is inherently federal; where
federal common law applies, there is no state-law option to choose. One of the main purposes of the wellpleaded complaint rule is to honor the plaintiff’s choice
of bringing a claim “in state court under state law.” Id.
at 832. But, as explained above, where federal common law governs, the “implicit corollary” is that there
is no state law to apply. Ouellette, 479 U.S. at 488.
That corollary is best demonstrated in cases where federal common law necessarily governs because the claim
is interstate and international in nature; transboundary issues cannot be resolved by a patchwork of state
courts applying local law in an uncoordinated manner.
20
E.g., New York, 993 F.3d at 85-86 (observing that climate change is “not well-suited to the application of
state law”).
Second, there is no risk of flooding federal courts
with a new wave of removal cases premised on federal
common law. Holmes, 535 U.S. at 832. Federal common law plays “a necessarily modest role,” Rodriguez,
140 S. Ct. at 717, and thus the “instances where [federal courts] have created federal common law are few
and restricted,” Wheeldin v. Wheeler, 373 U.S. 647, 651
(1963). See Tex. Indus., 451 U.S. at 641 (federal common law exists only in “narrow areas”). In those few
areas where federal common law applies, there is little
risk of intruding upon the “independence of state governments,” as those areas necessarily fall outside state
authority. Holmes, 535 U.S. at 832 (citation omitted).
Conversely, failing to recognize federal common law
claims for what they are, just because the plaintiff refuses to acknowledge it, risks allowing state courts and
state law to intrude upon federal priorities. As the
Second Circuit has warned, attempting to apply state
law in an area where federal common law should apply
risks “upsetting the careful balance” of federal prerogatives. New York, 993 F.3d at 93. In AEP, a case very
similar to this one that presented claims for relief
based on climate change, this Court made clear that
“[e]nvironmental protection” is one such area that is
“undoubtedly … within national legislative power, one
in which federal courts may fill in statutory interstices,
and, if necessary, even fashion federal law.” AEP, 564
U.S. at 421 (emphasis added, citation and internal quotation marks omitted); see id. (quoting Milwaukee I,
406 U.S. at 103); id. at 422 (noting not only that the
subject of tort law claims based on climate change “is
21
meet for federal law governance,” but that “borrowing
the law of a particular State would be inappropriate”
for federal common law claims based on climate
change).
Finally, using the artful pleading doctrine to recognize federal jurisdiction in cases presenting federal
common law claims does not make the well-pleaded
complaint rule any more complicated to apply. It is not
difficult to identify the few specific areas of the law
that raise the sorts of “especial federal concerns to
which federal common law applies.” Tex. Indus., 451
U.S. at 641 n.13; e.g., id. at 641 (identifying “narrow
areas” in which federal common law applies). The subject of “air and water in their ambient or interstate aspects,” AEP, 564 U.S. at 421 (quoting Milwaukee I, 406
U.S. at 103), is one such category, and a claim of harm
resulting from global climate change from interstate
and international emissions fits squarely into it.
C. The court of appeals determined that the only
exceptions to the well-pleaded complaint rule are for
complete preemption (labeled as “artful pleading”) and
for federal jurisdiction as articulated in Grable & Sons
Metal Products, Inc. v. Darue Engineering and Manufacturing, 545 U.S. 308 (2005). Pet. App. 21a-23a. But
as other courts have recognized, complete preemption
and artful pleading exist as two distinct bases for federal jurisdiction. E.g., Ohio ex rel. Skaggs v. Brunner,
629 F.3d 527, 532 (6th Cir. 2010) (artful pleading doctrine may apply independently of complete preemption
“where federal issues necessarily must be resolved to
address the state law causes of action”); 15A Moore’s
Fed. Practice—Civil § 103.43 (2022) (noting that it is
not “necessarily accurate” that artful pleading is the
same as complete preemption, and that “[p]erhaps a
22
better expression is that the complete preemption doctrine is a specific application of the artful pleading doctrine”). “The artful pleading doctrine allows removal
where federal law completely preempts a plaintiff’s
state-law claim,” Rivet v. Regions Bank of La., 522 U.S.
470, 475 (1998), but that is not all that it does.11 Complete preemption is not the only circumstance where
claims have a “sufficient federal character to support
removal.” Federated Dep’t Stores, Inc. v. Moitie, 452
U.S. 394, 397 n.2 (1981). Claims that must necessarily
arise under federal common law due to their interstate
and transboundary character constitute another such
circumstance. Milwaukee I, 406 U.S. at 103.
11 That is clear from Rivet itself, in which this Court reiterated
Franchise Tax Board’s statement that “a plaintiff may not defeat
removal by omitting to plead necessary federal questions,” and
then used complete preemption as one example. 522 U.S. at 475.
Rivet involved only an ordinary federal defense (preclusion).
23
CONCLUSION
The petition for a writ of certiorari should be granted.
Respectfully submitted.
ANDREW R. VARCOE
STEPHANIE A. MALONEY
U.S. CHAMBER
LITIGATION CENTER
1615 H Street, NW
Washington, DC 20062
July 11, 2022
WILLIAM M. JAY
Counsel of Record
ANDREW KIM
GOODWIN PROCTER LLP
1900 N Street, NW
Washington, DC 20036
wjay@goodwinlaw.com
(202) 346-4000
This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.