Respondents Brief — BP p.l.c., et al., Petitioners v. Mayor and City Council of Baltimore
Supreme Court briefDec 19, 2022
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No. 22-361
In The
Supreme Court of the United States
BP p.l.c., et al.,
v.
Petitioners,
Mayor & City Council of Baltimore,
Respondent.
On Petition for a Writ of Certiorari
to the United States Court of Appeals
for the Fourth Circuit
BRIEF FOR RESPONDENT
MAYOR & CITY COUNCIL OF BALTIMORE
Victor M. Sher
Counsel of Record
Matthew K. Edling
Martin D. Quiñones
Michael Burger
Sher Edling LLP
100 Montgomery St.,
Ste. 1410
San Francisco, CA 94104
(628) 231-2500
vic@sheredling.com
Sara Gross
Baltimore City
Law Department
100 N. Holliday Street,
Suite 109
Baltimore, MD 21202
(410) 396-3947
Mosaic - (301) 927-3800 - Cheverly, MD
49261_Ltrhd.indd
1
6/11/08
12:44:0
i
QUESTION PRESENTED
Should this Court create a new exception to the wellpleaded complaint rule that confers federal question
jurisdiction over respondent’s state-law complaint
based on petitioners’ assertion that respondent’s claims
are “governed by” federal common law when: (1) the
common law on which petitioners purport to rely has
been displaced by a federal statute; (2) the statute does
not completely preempt state law; and (3) petitioners
cannot show that respondent’s state-law claims necessarily present a substantial federal question that could
be adjudicated in federal court without upsetting the
federal-state division of judicial responsibility, as required by Grable & Sons Metal Products, Inc. v. Darue
Engineering & Mfg., 545 U.S. 308 (2005).
iii
TABLE OF CONTENTS
STATEMENT...................................................
Page
1
Background...................................................
4
Facts and Procedural History......................
7
REASONS THE PETITION SHOULD BE
DENIED.......................................................
8
There is no circuit conflict on the first
Question Presented because the cases
petitioners rely upon resolved different
issues in materially different cases............
10
There is no circuit conflict on the second
Question Presented, because this Court
has carefully elucidated the application of
“arising under” jurisdiction to removed
state law causes of action and the circuits
are in accord.................................................
15
The decision below was correct, both as to
the displacement of the federal common
law of interstate pollution nuisance and
as to the removability analysis...................
18
The Questions Presented have minimal
practical importance and this case is a
poor vehicle for addressing them................
28
CONCLUSION................................................
30
v
TABLE OF AUTHORITIES
Page
Cases
Am. Elec. Power Co. v. Connecticut,
564 U.S. 410 (2011)........................ 3, 14, 19, 20, 21
Atl. Richfield Co. v. Christian,
140 S. Ct. 1335 (2020)......................................
24
Beneficial Nat’l Bank v. Anderson,
539 U.S. 1 (2003)..............................................
24
Board of County Commissioners of Boulder
County v. Suncor Energy (U.S.A.) Inc.,
25 F.4th 1238 (10th Cir. 2022)............ 1, 12, 13, 20
BP P.L.C. v. Mayor & City Council of Baltimore,
141 S. Ct. 1532 (2021)......................................
2, 7
California v. ARC Am. Corp.,
490 U.S. 93 (1989)............................................
4
Caterpillar Inc. v. Williams,
482 U.S. 386 (1987).....................................
5, 6, 24
Chamber of Com. of U.S. v. Whiting,
563 U.S. 582 (2011)..........................................
23
City of Hoboken v. Chevron Corp.,
45 F.4th 699 (3d Cir. 2022).............................. 1, 13
City of New York v. Chevron Corp,
993 F.3d 81 (2d Cir. 2021)........................... passim
City of Oakland v. BP PLC,
969 F.3d 895 (9th Cir. 2020)............................ 1, 14
Connecticut v. Exxon Mobil Corp.,
No. 3:20-CV-1555 (JCH), 2021 WL 2389739
(D. Conn. June 2, 2021)................................... 10, 13
Cty. of San Mateo v. Chevron Corp.,
32 F.4th 733 (9th Cir. 2022)............................
1
vi
TABLE OF AUTHORITIES—Continued
Page
Edenfield v. Fane,
507 U.S. 761 (1993)..........................................
4
Empire Healthchoice Assurance, Inc. v. McVeigh,
547 U.S. 677 (2006)..........................................
6
Federated Department Stores, Inc. v. Moitie,
452 U.S. 394 (1981)..........................................
25
Fla. Lime & Avocado Growers, Inc. v. Paul,
373 U.S. 132 (1963)..........................................
4
Franchise Tax Bd. of State of Cal. v.
Constr. Laborers Vacation Tr. for S. Cal.,
463 U.S. 1 (1983)..............................................
5
Georgia v. Tenn. Copper Co.,
240 U.S. 650 (1916)..........................................
19
Goepel v. Nat’l Postal Mail Handlers Union,
a Div. of LIUNA,
36 F.3d 306 (3d Cir. 1994)...............................
25
Grable & Sons Metal Prods., Inc. v.
Darue Eng’g & Mfg.,
545 U.S. 308 (2005)..........................................
3, 6
Gully v. First Nat’l Bank,
299 U.S. 109 (1936).......................................... 6, 11
Gunn v. Minton,
568 U.S. 251 (2013)...................................... passim
Hagans v. Lavine,
415 U.S. 528 (1974)..........................................
21
Hertz Corp. v. Friend,
559 U.S. 77 (2010)............................................
27
Illinois v. City of Milwaukee,
406 U.S. 91 (1972)............................................
19
vii
TABLE OF AUTHORITIES—Continued
Page
In re Methyl Tertiary Butyl Ether (MTBE)
Prods. Liab. Litig.,
725 F.3d 65 (2d Cir. 2013)...............................
4
In re Otter Tail Power Co.,
116 F.3d 1207 (8th Cir. 1997)..........................
16
Kircher v. Putnam Funds Tr.,
547 U.S. 633 (2006)..........................................
4
Lorillard Tobacco Co. v. Reilly,
533 U.S. 525 (2001)..........................................
4
Louisville & Nashville R. Co. v. Mottley,
211 U.S. 149 (1908)..........................................
24
Mansfield, C. & L.M.R. Co. v. Swan,
111 U.S. 379 (1884)..........................................
13
Mayor & City Council of Baltimore v. BP P.L.C.,
952 F.3d 452 (4th Cir. 2020)............................
7
Merrell Dow Pharms. Inc. v. Thompson,
478 U.S. 804 (1986).......................................... 5, 24
Merrill Lynch, Pierce, Fenner & Smith Inc. v.
Manning,
578 U.S. 374 (2016)...................................... passim
Metro. Life Ins. Co. v. Taylor,
481 U.S. 58 (1987)........................................ 5, 6, 25
Middlesex Cty. Sewerage Auth. v. Nat’l Sea
Clammers Ass’n,
453 U.S. 1 (1981)..............................................
19
Milwaukee v. Illinois,
451 U.S. 304 (1981)..........................................
19
Miree v. DeKalb Cty.,
433 U.S. 25 (1977).......................................... 22, 23
viii
TABLE OF AUTHORITIES—Continued
Page
Missouri v. Illinois,
180 U.S. 208 (1901)..........................................
19
Mitchell v. Advanced HCS, L.L.C.,
28 F.4th 580 (5th Cir. 2022)............................
16
Morgan Cty. War Mem’l Hosp. ex rel.
Bd. of Dirs. of War Mem’l Hosp. v. Baker,
314 F. App’x 529 (4th Cir. 2008).....................
16
Native Vill. of Kivalina v. ExxonMobil Corp.,
696 F.3d 849 (9th Cir. 2012)............................ 9, 21
New Jersey v. City of New York,
283 U.S. 473 (1931)..........................................
19
Nicodemus v. Union Pac. Corp.,
440 F.3d 1227 (10th Cir. 2006)........................
16
O’Melveny & Myers v. F.D.I.C.,
512 U.S. 79 (1994)............................................
22
Rhode Island v. Shell Oil Prods. Co.,
35 F.4th 44 (1st Cir. 2022)............................... 1, 12
Rivet v. Regions Bank of La.,
522 U.S. 470 (1998)..........................................
26
Rodriguez v. F.D.I.C.,
140 S. Ct. 713 (2020)........................................
22
Sam L. Majors Jewelers v. ABX, Inc.,
117 F.3d 922 (5th Cir. 1997)............................
17
Steel Co. v. Citizens for a Better Env’t,
523 U.S. 83 (1998)............................................
13
Tennessee v. Davis,
100 U.S. 257 (1879)..........................................
19
Texas Indus., Inc. v. Radcliff Materials, Inc.,
451 U.S. 630 (1981).......................................
28, 29
ix
TABLE OF AUTHORITIES—Continued
Page
United States v. Rice,
327 U.S. 742 (1946)..........................................
4
Vaden v. Discover Bank,
556 U.S. 49 (2009)............................................ 5, 24
Virginia Uranium, Inc. v. Warren,
139 S. Ct. 1894 (2019)......................................
23
Wallis v. Pan Am. Petroleum Corp.,
384 U.S. 63 (1966)............................................
22
Zschernig v. Miller,
389 U.S. 429 (1968)..........................................
15
Statutes
15 U.S.C. § 78aa(a)..............................................
26
28 U.S.C. § 1331................................................ passim
28 U.S.C. § 1441................................................ 5, 8, 15
28 U.S.C. § 1442...................................................
7
28 U.S.C. § 1447(d)..............................................
8
U.S. Const. Art. I, § 1...........................................
22
1
STATEMENT
This case is nearly identical, factually and procedurally, to Board of County Commissioners of Boulder
County v. Suncor Energy (U.S.A.) Inc., 25 F.4th 1238
(10th Cir. 2022), petition for cert. filed, No. 21-1550
(“Suncor”), in which one of the petitioners here asserts
the same Questions Presented. As in Suncor, this petition does not identify any true circuit conflict or any
significant legal issue arising out of the uniform appellate decisions—now in five circuits—affirming district court remand orders in these improperly removed
climate-deception cases.1 Petitioners’ extraordinary
theory of removal asks the courts to 1) recognize a
novel exception to the well-pleaded complaint rule
that sidesteps this Court’s subject-matter jurisdiction
jurisprudence, and 2) apply that new exception to find
that state law causes of action arise under federal
common law, even where, as here, the federal common
law has been displaced by statute. Because respondent’s well-pleaded state court complaint alleges exclusively state-law statutory and common law tort
claims, and because neither Question Presented has
arisen or is likely to arise in any other group of cases,
the petition for writ of certiorari should be denied.
As this Court recognized in its 2021 decision in this
case, respondent Mayor & City Council of Baltimore
(“Baltimore” or “City”) filed the underlying lawsuit in
Maryland state court against the 21 energy company
petitioners “for promoting fossil fuels while allegedly
See also Rhode Island v. Shell Oil Prods. Co., 35 F.4th 44
(1st Cir. 2022), petition for cert. filed, No. 22-524; City of Hoboken
v. Chevron Corp., 45 F.4th 699 (3d Cir. 2022); Cty. of San Mateo
v. Chevron Corp., 32 F.4th 733 (9th Cir. 2022), petition for cert.
filed, No. 22-495; City of Oakland v. BP PLC, 969 F.3d 895 (9th
Cir. 2020), cert. denied, 141 S. Ct. 2776 (2021).
1
2
concealing their environmental impacts” over many
years. BP P.L.C. v. Mayor & City Council of Baltimore,
141 S. Ct. 1532, 1535 (2021). Baltimore pleaded exclusively state-law claims “centered on the defendants’
alleged failure to warn about the dangers of their
products—and the injuries the City says it suffered as
a result.” Id. The gist of the City’s complaint is that
petitioners wrongfully “employed a coordinated,
multi-front effort to conceal and deny” the science of
global warming, the known dangers of fossil fuels, and
the catastrophic consequences of climate change, with
the purpose and effect of inflating the market for their
fossil fuel products. Pet. App. 3a.
The Fourth Circuit has twice held that the federal
courts lack subject-matter jurisdiction over the City’s
state-law claims, and has rejected eight different theories of removal jurisdiction proffered by petitioners.
In the ruling now at issue, the court of appeals held
inter alia that the City’s state-law claims for relief do
not “arise under” federal common law for purposes of
subject-matter jurisdiction. The court held both that
Baltimore’s claims did not implicate any question of
federal common law, and that in any event neither the
well-pleaded complaint rule nor its recognized exceptions permitted removal. See Pet. App. 11a–28a. The
ird, Ninth, and Tenth Circuits have each
First, Th
reached the same result in similar cases. No circuit
court has held otherwise, including in City of New
York v. Chevron Corp., 993 F.3d 81 (2d Cir. 2021). As
discussed below, that case involved materially different substantive allegations, and was initiated in federal court in the first instance; federal subject-matter
jurisdiction was never challenged or analyzed.
The appellate courts are uniform in holding that,
even if federal common law might once have been ap-
3
plicable to the government plaintiffs’ allegations in
these climate-deception cases, all potentially relevant
federal common law has been displaced by the Clean
Air Act and cannot provide a basis for arising-under
jurisdiction. The appellate courts are also uniform in
“resoundingly” rejecting what the Fourth Circuit characterized as petitioners’ “perplexing argument” that
courts should create a new exception to the well-pleaded complaint rule that would allow removal of any
state-law claim that could have been pleaded under
federal common law—even after the federal common
law has been displaced by statute. Pet. App. 12a, 20a.
Those unanimous holdings are correct applications
of this Court’s jurisprudence. On the first Question, the
Court has squarely held that any federal common law
nuisance claim relating to greenhouse gas emissions
has been displaced by the Clean Air Act. See Am. Elec.
Power Co. v. Connecticut, 564 U.S. 410 (2011) (“AEP”).
On the second Question, the Court has worked for
nearly two decades to “bring some order to th[e] unruly
doctrine” courts previously applied to determine whether a state-law claim presents a federal question for purposes of removal. Gunn v. Minton, 568 U.S. 251, 258
(2013); see also Grable & Sons Metal Prods., Inc. v. Darue Eng’g & Mfg., 545 U.S. 308 (2005). Petitioners have
not offered any compelling reason for this Court to create a new category of removable claims that bypasses
the seminal Grable test, let alone to reconsider Grable,
and the two cases petitioners principally rely on predate that decision. See Pet. 19–20.
Even if petitioners could establish a need to expand the scope of the Court’s longstanding removal
jurisprudence, this case would be a poor vehicle for
doing so. The quintessentially state-law claims
pleaded in Baltimore’s complaint have nothing to do
4
with any federal common law that has ever existed.
Instead, the City’s allegations seek to vindicate core
police power interests and protect the public’s vital
“interest in ensuring the accuracy of commercial information in the marketplace.” Edenfield v. Fane,
507 U.S. 761, 769 (1993). The allegations target misconduct that states have long regulated in such recognized areas as “protection of consumers,” Fla. Lime
& Avocado Growers, Inc. v. Paul, 373 U.S. 132, 150
(1963); “advertising,” Lorillard Tobacco Co. v. Reilly,
533 U.S. 525, 541–42 (2001); and “unfair business
practices,” California v. ARC Am. Corp., 490 U.S. 93,
101 (1989); and the complaint seeks statutory and
tort remedies that are deeply rooted in “the state’s
historic powers to protect the health, safety, and
property rights of its citizens.” In re Methyl Tertiary
Butyl Ether (MTBE) Prods. Liab. Litig., 725 F.3d 65,
96 (2d Cir. 2013).
The Court has repeatedly stated that “[t]he policy
of Congress opposes ‘interruption of the litigation of
the merits of a removed cause by prolonged litigation
of questions of jurisdiction of the district court to
which the cause is removed.’ ” Kircher v. Putnam
Funds Tr., 547 U.S. 633, 640 (2006) (quoting United
States v. Rice, 327 U.S. 742, 751 (1946)). Petitioners
have delayed merits litigation on Baltimore’s claims
through nearly a half-decade of jurisdictional wrangling. The issues raised in their petition have been
rejected by every court to consider them, and there is
no justifiable basis for further review. The petition
should be denied.
Background
“Federal courts are courts of limited jurisdiction,
possessing only that power authorized by Constitution and statute.” Gunn, 568 U.S. at 256 (cleaned
5
up). Congress has granted federal district courts
original subject-matter jurisdiction over “all civil actions arising under the Constitution, laws, or treaties of the United States,” and such actions “may be
removed by the defendant” from state to federal
court. 28 U.S.C. §§ 1331, 1441.
“[U]nder the present statutory scheme as it has
existed since 1887,” the Court has applied a “powerful doctrine,” known as the well-pleaded complaint
rule, requiring jurisdiction under sections 1331 and
1441 to “be determined from what necessarily appears in the plaintiff ’s statement of his own claim in
the bill or declaration.” Franchise Tax Bd. of State of
Cal. v. Constr. Laborers Vacation Tr. for S. Cal., 463
U.S. 1, 9–10 (1983) (citation omitted). For more than
a century, that rule has been “the basic principle
marking the boundaries of the federal question jurisdiction of the federal district courts.” Metro. Life
Ins. Co. v. Taylor, 481 U.S. 58, 63 (1987). The rule
“makes the plaintiff the master of the claim” such
that “he or she may avoid federal jurisdiction by exclusive reliance on state law.” Caterpillar Inc. v.
Williams, 482 U.S. 386, 392 (1987). “Jurisdiction
may not be sustained on a theory that the plaintiff
has not advanced,” Merrell Dow Pharms. Inc. v.
Thompson, 478 U.S. 804, 809 n.6 (1986), and cannot
be “predicated on an actual or anticipated defense,”
Vaden v. Discover Bank, 556 U.S. 49, 60 (2009), “including the defense of pre-emption,” Franchise Tax
Bd., 463 U.S. at 14. There are only two recognized
exceptions to the well-pleaded complaint rule. Petitioners now press for a third.
The first exception is the doctrine of complete preemption, which applies only when “the pre-emptive
force of a statute is so ‘extraordinary’ that it ‘converts
6
an ordinary state common-law complaint into one
stating a federal claim for purposes of the well-pleaded complaint rule.’ ” Caterpillar, 482 U.S. at 393
(quoting Metro Life, 481 U.S. at 65). The Court has
been “reluctant to find that extraordinary pre-emptive power,” and has identified only three statutes
that have “complete preemption” effect, none of which
are at issue here. Metro. Life, 481 U.S. at 65.
The second is Grable jurisdiction, a doctrine this
Court developed to resolve the lower courts’ longstanding difficulty in applying the well-pleaded complaint rule to cases in which “a question of federal law
is lurking in the background” of a case pleaded under
state law. See Gully v. First Nat’l Bank, 299 U.S. 109,
117 (1936); see also Merrill Lynch, Pierce, Fenner &
Smith Inc. v. Manning, 578 U.S. 374, 385 (2016)
(quoting Gunn, 568 U.S. at 258) (describing the previous “caselaw construing § 1331” as “highly ‘unruly’ ”).
The Grable doctrine is applicable only to a “special
and small category” of cases in which “federal jurisdiction over a state law claim will lie if a federal issue
is: (1) necessarily raised, (2) actually disputed, (3)
substantial, and (4) capable of resolution in federal
court without disrupting the federal-state balance
approved by Congress.” Gunn, 568 at 258 (citing Grable, 545 U.S. at 314; Empire Healthchoice Assurance,
Inc. v. McVeigh, 547 U.S. 677, 699 (2006)).
Petitioners do not contend in this Court that respondent’s claims are either completely preempted
or removable under Grable. Their petition instead
asks the Court to grant review for the sole purpose
of carving out a new exception to the well-pleaded
complaint rule—previously unknown and unavailable—that in practice would be applicable only to
the limited category of climate-deception cases cited
in Pet. 8–9 n.1.
7
Facts and Procedural History
Respondent brought this action in Maryland state
court in 2018, alleging exclusively state-law claims for
relief, including public and private nuisance and failure to warn, based on petitioners’ decades-long campaigns to promote fossil-fuel products while wrongfully
concealing the destructive impacts on public infrastructure they knew would result from using those
products as directed. See Pet. App. 3a–4a. As the
Fourth Circuit noted, the City’s complaint “seeks to
challenge the promotion and sale of fossil fuel products
without warning and abetted by a sophisticated disinformation campaign,” Id. 77a; the complaint does “not
seek to impose liability on Defendants for their direct
emissions of greenhouse gases [or] to restrain Defendants from engaging in their business operations.” Id.
4a. Although emissions are “necessary to establish the
avenue of Baltimore’s climate-change-related injuries,
[they are] not the source of tort liability.” Id. 77a.
Petitioners removed the case to the District of Maryland, asserting eight different theories of federal subject-matter jurisdiction. See, e.g., Pet. App. 89a. The
district court granted the City’s motion to remand, rejecting all eight theories. Id. 137a. The Fourth Circuit
affirmed the district court’s ruling that it lacked subject-matter jurisdiction under the federal officer removal statute, 28 U.S.C. § 1442, and held that it
lacked appellate jurisdiction to review any of the other
rejected grounds for removal. Mayor & City Council of
Baltimore v. BP P.L.C., 952 F.3d 452 (4th Cir.
2020), vacated and remanded, 141 S. Ct. 1532 (2021).
This Court granted certiorari and reversed, holding
that courts of appeals have jurisdiction to consider all
grounds for removal denied in a district court remand
order if the defendant’s removal petition relied on at
8
least one of the grounds exempted from 28 U.S.C.
§ 1447(d)’s bar on appellate review, which include federal officer removal as asserted here. Baltimore, 141
S. Ct. at 1543. The Court remanded for the Fourth
Circuit to consider petitioners’ remaining grounds for
removal. After further briefing and argument, the
Fourth Circuit again affirmed the district court’s remand order, rejecting each of the remaining theories
of removal and remanding the case to Maryland state
court. See Pet. App. 1a–86a.
REASONS THE PETITION
SHOULD BE DENIED
First, the decision below does not conflict with any
decision of any court of appeals, on any issue. Petitioners contend that the court of appeals’ decision conflicts with City of New York v. Chevron Corp., 993 F.3d
81 (2d Cir. 2021), on the first Question, whether federal common law “necessarily and exclusively governs” the state-law claims at issue. But City of New
York involved materially different allegations in a
case that was filed in federal court on diversity
grounds, not removed from state court on a theory of
arising-under jurisdiction. The Second Circuit addressed the defendants’ “preemption defense on its
own terms, not under the heightened standard unique
to the removability inquiry,” because it reviewed an
order granting a motion to dismiss for failure to state
a claim. 993 F.3d at 94.
On the second Question, the Fourth Circuit properly
applied this Court’s modern jurisprudence establishing the standards for removability under 28 U.S.C.
§§ 1331 and 1441. The court of appeals’ holding that
respondent’s claims neither invoke nor require resolution of federal common law is consistent with the rul-
9
ings of every district and circuit court to consider the
question in the context of these climate-deception cases. No court has held in any context, moreover, that a
statutorily displaced federal common law cause of action can serve as a basis for federal question jurisdiction “without resort to the doctrine of Grable.” Pet. 22.
Every court to consider the question has held just the
opposite. See, e.g., Native Vill. of Kivalina v. ExxonMobil Corp., 696 F.3d 849, 853 (9th Cir. 2012) (“If a federal common law cause of action has been extinguished
by Congressional displacement, it would be incongruous to allow it to be revived in another form.”). The two
purportedly conflicting decisions petitioners identify
both predate Grable, and would be analyzed under the
Grable framework today. There is no circuit conflict.
Second, the decision below is correct. The court of
appeals correctly concluded that this Court’s Grable
line of cases provides the only existing method for
finding that a cause of action pleaded under state law
nonetheless arises under federal common law for subject-matter jurisdiction purposes. If a federal cause of
action does not appear on the face of the complaint,
the case is only removable on federal question grounds
if the four-element Grable test is satisfied, or if the asserted state-law claim is completely preempted by a
federal statute. And because complete preemption requires clear direction from Congress, federal-question
jurisdiction based on federal common law is appropriately analyzed through Grable.
There is no additional exception to the well-pleaded
complaint rule for state claims that purportedly implicate federal common law—let alone federal common
law that has since been displaced by statutory enactment—but do not satisfy Grable and are not completely preempted by statute. Petitioners neither identify
10
any compelling need for their proposed new rule nor
any case authority supporting removal based “on federal common law even when the federal common law
claim has been deemed displaced, extinguished, and
rendered null” by congressional action. Pet. App. 24a.
No such case exists, nor should it.
There is no circuit conflict on the first Question
Presented because the cases petitioners rely
upon resolved different issues in materially
different cases.
The first Question Presented is not squarely raised
and would not be the subject of a circuit split even if it
were. Petitioners contend that the Second Circuit’s decision in City of New York, 993 F.3d 81, conflicts with
the portion of the Fourth Circuit’s ruling rejecting
their argument that respondent’s claims are “necessarily and exclusively governed by federal common
law.” See, e.g., Pet. 3, 13. That purported conflict is illusory for at least two reasons. First, the two courts
addressed and decided entirely separate issues in completely different procedural postures—one jurisdictional and one on the merits of a federal preemption
defense—as both courts expressly recognized.2 Second,
the two cases rest upon materially different factual allegations and theories of liability, making the Second
Circuit’s reasoning entirely inapplicable to this case.
1. The decision below does not conflict with City of
New York for the principal reason that the cases reA district court in the Second Circuit has in fact adopted the
same reasoning as the Fourth Circuit below, remanding a different climate-deception case after concluding that City of New York
was not controlling. Connecticut v. Exxon Mobil Corp., No. 3:20CV-1555 (JCH), 2021 WL 2389739, at *4–7 & n.7 (D. Conn. June
2, 2021), appeal pending, No. 21-1446 (2d Cir.).
2
11
solved different questions. The issue in this case is
whether federal common law provides a basis for removal, even though Baltimore’s well-pleaded statelaw complaint neither asserts a federal common law
claim for relief nor could have asserted such a claim.
The issue in the Second Circuit case, which was filed
initially in federal court and thus raised no issue of
removability, was whether the plaintiff ’s substantive
allegations, as pleaded, failed to state a claim for relief because they were preempted by federal common
law. The Second Circuit resolved the defendants’ preemption defenses on the merits and did not consider
any question of federal subject-matter jurisdiction.
Both courts acknowledged as much and expressly
stated that their holdings were not in conflict.
It has been settled law for more than a century that
the availability of even a meritorious federal preemption defense is not a sufficient basis for removing statelaw claims to federal court. See, e.g., Gully, 299 U.S. at
116 (“By unimpeachable authority, a suit brought
upon a state statute does not arise under an act of Congress or the Constitution of the United States because
prohibited thereby.”). In this case, the Fourth Circuit
held that Baltimore’s claims do not “arise under” federal common law for removal purposes, because petitioners “[a]t most” presented “an ordinary preemption
argument” that cannot support federal question jurisdiction under the well-pleaded complaint rule. Pet.
App. 28a. Because the court was “only concerned with
removal jurisdiction” it had no “need . . . to delve into
these defenses at Defendants’ disposal.” Id. 10a n.2.
The court acknowledged the City of New York decision
and noted that it arose “in a completely different procedural posture,” “because New York City initially
filed suit in federal court as opposed to state court” and
“the Second Circuit confined itself to Rule 12(b)(6) and
12
never addressed its own subject-matter jurisdiction.”
Id. 18a. For that reason, it concluded that City of New
York “d[id] not pertain to the issues before [the court].”
Id. Two other recent court of appeals decisions expressly distinguished City of New York on that identical basis. See Suncor, 25 F.4th at 1262; Rhode Island,
35 F.4th at 55.
The Second Circuit itself recognized the material
procedural differences between these cases, which is
why it expressly “reconcile[d]” its analysis with “the
parade of recent opinions” affirming remand orders in
this case and others. City of New York, 993 F.3d at 93.
The Second Circuit noted that the energy company defendants “sought to remove those cases to federal
court, arguing that they anticipated raising federal
preemption defenses,” and “[t]he single issue before
each of those federal courts was thus whether the defendants’ anticipated defenses could singlehandedly
create federal-question jurisdiction.” Id. at 94. By contrast, the plaintiff in City of New York “filed suit in
federal court in the first instance” on diversity grounds,
and both the district court and Second Circuit were
“thus free to consider the [defendants]’ preemption defense on its own terms, not under the heightened standard unique to the removability inquiry.” Id. That is
why the Second Circuit was able to conclude that the
“fleet of cases” finding that “federal preemption does
not give rise to a federal question for purposes of removal . . . does not conflict with our holding.” Id. The
cases addressed entirely different issues.
Because of this fundamental difference, the Second
Circuit and Fourth Circuit’s opinions are not in conflict, and not mutually exclusive. The decision below
would not preclude a district court in the Fourth Circuit from holding that a claim identical to New York
13
City’s, filed in federal court, would be preempted by
federal law. Likewise, City of New York does not preclude district courts in the Second Circuit from holding
that state-law claims like Baltimore’s do not arise under federal common law for jurisdictional purposes.3
Petitioners acknowledge the procedural differences
between this case and City of New York but assert
that those differences “do[] not eliminate the conflict
on the first question presented,” because the jurisdictional question (whether the complaint arises under
federal law) is “logically subsequent” to the merits
question (whether federal common law “govern[s]”).
Pet. 16. That gets the analysis exactly backward—“[t]he requirement that jurisdiction be established as a threshold matter ‘spring[s] from the nature
and limits of the judicial power of the United States’
and is ‘inflexible and without exception.’ ” Steel Co. v.
Citizens for a Better Env’t, 523 U.S. 83, 94–95 (1998)
(quoting Mansfield, C. & L.M.R. Co. v. Swan, 111 U.S.
379, 382 (1884)). The court of appeals, like the First,
Third, Ninth, and Tenth Circuit courts in Rhode Island, Hoboken, San Mateo, and Suncor, respectively,
correctly held that “even if” petitioners could establish
that federal common law preempted Baltimore’s
claims, as City of New York held based on the allegations in that case, “the well-pleaded complaint rule
The District of Connecticut did just that in Connecticut, 2021
WL 2389739, at *4–7 & n.7. The State of Connecticut there
brought statutory consumer protection claims alleging that fossil
fuel companies misled consumers in the state about climate
change, and the defendants argued those state-law claims were
“necessarily and exclusively govern[ed]” by federal common law.
Id. at *7. The district court, like the court of appeals here, held
that federal common law did not provide a basis for federal removal jurisdiction. See id. (“ExxonMobil has not shown that federal common law justifies removal of this case.”).
3
14
would still forbid the removal” because ordinary preemption is a federal defense that cannot confer jurisdiction. Pet. App. 20a.
The Fourth Circuit and those other courts in fact
could have affirmed the district courts’ remand orders
without considering the existence or scope of any applicable federal common law, which is precisely what
the Ninth Circuit did in the Oakland case. The district
court there held that “it had federal-question jurisdiction under 28 U.S.C. § 1331 because the Cities’ claim
was ‘necessarily governed by federal common law.’ ”
See Oakland, 969 F.3d at 902. Writing for the circuit
panel, Judge Ikuta observed that it was “not clear that
the claim requires an interpretation or application of
federal law at all, because the Supreme Court has not
yet determined that there is a federal common law of
public nuisance relating to interstate pollution.” Id. at
906 (citing AEP, 564 U.S. at 423). The court held that
federal common law could not provide jurisdiction over
the case regardless because Grable was not satisfied:
“Even assuming that the Cities’ allegations could give
rise to a cognizable claim for public nuisance under
federal common law, . . . the district court did not have
jurisdiction under § 1331 because the state-law claim
for public nuisance fails to raise a substantial federal
question.” Id. The courts of appeals are uniform that
petitioners’ argument here presents at most a preemption defense and does not confer jurisdiction.
2. The Fourth Circuit’s decision also does not conflict with City of New York because the allegations in
the two cases are materially different. In City of New
York, the plaintiff “acknowledge[d]” that the conduct
on which it premised liability was “lawful commercial
activity,” and the Second Circuit understood that the
City’s claims would “effectively impose strict liability
15
for the damages caused by fossil fuel emissions,” requiring the defendants to “cease global production altogether” to avoid ongoing liability. 993 F.3d at 87, 93
(cleaned up). Here, by contrast, the court of appeals
recognized that Baltimore “clearly seeks to challenge
the promotion and sale of fossil-fuel products without
warning and abetted by a sophisticated disinformation campaign,” and the tortious conduct is petitioners’ alleged “concealment and misrepresentation of
the products’ known dangers.” Pet. App. 77a. Baltimore’s claims thus do not “launch the State upon a
prohibited voyage into a domain of exclusively federal
competence,” Zschernig v. Miller, 389 U.S. 429, 442
(1968) (Stewart, J., concurring), because there has
never been any federal common law pertaining to any
of these subjects. Whether or not the considerations
discussed in City of New York warrant the recognition
or application of a federal common law, Baltimore’s
allegations do not.
There is no circuit conflict on the second
Question Presented, because this Court has
carefully elucidated the application of “arising
under” jurisdiction to removed state law
causes of action and the circuits are in accord.
There is also no circuit conflict on the second Question Presented, pertaining to petitioners’ proposed
new exception to the well-pleaded complaint rule.
Starting with Grable in 2005, this Court has simplified and clarified the principles governing the removability under 28 U.S.C. §§ 1331 & 1441 of state-law
claims for relief that necessarily raise issues of federal
law. The lower courts have uniformly applied those
standards, and petitioners have neither identified any
circuit conflict nor articulated any pressing need for
the Court to revisit its previous decisions.
16
Before Grable, no “well-defined test” existed to
guide the lower courts in this area, Manning, 578
U.S. at 385, and the “canvas” of opinions across the
judiciary “look[ed] like one that Jackson Pollock got
to first.” Gunn, 568 U.S. at 258. Grable established a
straightforward, four-part test for determining when
a district court may exercise federal question jurisdiction over a case pleading only state-law claims for
relief, see id. at 258, and the courts of appeals have
consistently and effectively applied that test in a
broad range of cases, including those in which the
plaintiff ’s state-law claims allegedly implicate federal common law. See, e.g., Mitchell v. Advanced HCS,
L.L.C., 28 F.4th 580, 588–89 (5th Cir. 2022); Morgan
Cty. War Mem’l Hosp. ex rel. Bd. of Dirs. of War Mem’l
Hosp. v. Baker, 314 F. App’x 529, 533–37 (4th Cir.
2008); Nicodemus v. Union Pac. Corp., 440 F.3d 1227,
1235–37 (10th Cir. 2006). Petitioners’ insistence that
removal of entirely state-law complaints should be
“permissible without resort to the doctrine of Grable”
or complete preemption, Pet. 22, is an extreme outlier
position that no court has adopted.
The two cases petitioners cite as evidence of a circuit split predate Grable, and “most courts recognize
that these cases are not good law” to the extent they
are inconsistent with it. Hoboken, 45 F.4th at 708. In
In re Otter Tail Power Co., 116 F.3d 1207, 1213–14
(8th Cir. 1997), the plaintiff brought a suit for injunctive relief in state court, alleging that the defendant
power company failed to comply with a federal district
court order regarding its authority to provide electrical utility services to a tribal reservation. The defendant successfully removed the case, based on the federal district court’s and Eighth Circuit’s conclusion
that “the plaintiff’s right to relief necessarily depends
on resolution of a substantial question of federal law”
17
insofar as “the extent of an Indian Tribe’s authority to
regulate nonmembers on a reservation . . . is manifestly a federal question” because “tribal sovereignty
is dependent on, and subordinate to, only the Federal
Government.” Id. (cleaned up). Today, the same question would be resolved by reference to the Grable test,
of which a substantial federal question is one—but
not the only—element. The court in Otter Tail agreed
that questions of Federal Indian Law were necessarily
raised, substantial, and actually disputed, and the
outcome of the case today would depend on whether
the issue could be adjudicated without upsetting any
state-federal divisions of judicial authority approved
by Congress. Gunn, 568 U.S. at 258. Nothing in the
Eighth Circuit’s reasoning conflicts with the court of
appeals’ analysis or holdings here.
The Fifth Circuit’s decision in Sam L. Majors Jewelers v. ABX, Inc., 117 F.3d 922 (5th Cir. 1997), is by its
own terms narrow and limited. The court there held
that a plaintiff ’s claims relating to jewelry lost by an
airline arose under federal common law because there
was a long-recognized, “clearly established federal
common law cause of action against air carriers for
lost shipments,” which Congress had affirmatively
“preserv[ed]” in the Airline Deregulation Act of 1978.
Id. at 928. The court expressly stated that “[b]ecause
we rely upon the historical availability of this common
law remedy, and the statutory preservation of the
remedy, our holding today is necessarily limited.” Id.
at 929 n.16. As discussed in greater detail below, the
circumstances here are exactly the opposite; if a federal common law cause of action ever existed that
could have encompassed Baltimore’s claims, it has
been displaced by the Clean Air Act. There is no basis
to conclude Baltimore’s case would be decided differently under the Fifth Circuit’s former jurisprudence,
18
or that the Fourth Circuit would reach a different conclusion on the facts of Sam L. Majors today.
To the extent petitioners’ pre-Grable cases stand for
the anomalous proposition that “a district court has
jurisdiction under Section 1331 over claims artfully
pleaded under state law but necessarily governed by
federal common law,” Pet. 18, “without resort to the
doctrine of Grable,” Pet. 22, it is because this Court’s
“caselaw construing § 1331 was for many decades . . .
highly ‘unruly’ ” and lower courts struggled to apply it.
Manning, 578 U.S. at 385 (quoting Gunn, 568 U.S. at
258). The Court has since provided clear guidance to
which the circuits have unanimously conformed.
The decision below was correct, both as to the
displacement of the federal common law of
interstate pollution nuisance and as to the
removability analysis.
The decision below correctly follows this Court’s
guidance on how to determine whether state-law
claims are removable and how to determine whether a
state-law public-nuisance or other tort claim that in
some manner pertains to interstate pollution is a disguised claim under federal common law. As to the first
issue, the court of appeals properly decided that petitioners failed to establish an exception to the wellpleaded complaint rule, because the underlying claims
were neither completely preempted by federal statute
nor removable under Grable. As to the second, the
court of appeals properly concluded that the City’s
claims were not disguised federal common law claims,
and that in any event, the federal common law that
petitioners rely upon was displaced by the Clean Water Act and Clean Air Act and could not support arising-under jurisdiction for that reason as well.
19
1. More than a decade ago, this Court made clear
that to the extent any federal common law of interstate pollution previously existed, it was extinguished
by Congress’s enactment of the Clean Air Act in 1963.
While this Court once “recognized public nuisance as
a federal common law claim” in the context of “disputes involving [pollution in] interstate and navigable
waters,” the scope of that federal law was narrowly
circumscribed. Pet. App. 21a (citing Illinois v. City of
Milwaukee, 406 U.S. 91 (1972)). For example, although the Court held that “States were permitted to
sue to challenge activity harmful to their citizens’
health and welfare” under a federal common law of
interstate pollution,4 it never had occasion to “decide[]
whether private citizens . . . or political subdivisions
. . . may invoke the federal common law of nuisance to
abate out-of-state pollution.” AEP, 564 U.S. at 422
(emphasis added). That is because Congress amended
the Clean Water Act and displaced any such claim (as
this Court acknowledged in Milwaukee v. Illinois, 451
U.S. 304 (1981) (“Milwaukee II”)) before any case arose
in which a private party alleged a claim for public nuisance under federal common law based on interstate
water pollution. See also Middlesex Cty. Sewerage
Auth. v. Nat’l Sea Clammers Ass’n, 453 U.S. 1, 21–22
(1981) (“[W]e need not decide whether a cause of action may be brought under federal common law by a
private plaintiff, seeking damages” because “the federal common law of nuisance in the area of water pollution is entirely pre-empted by the more comprehensive scope of” the Clean Water Act.).
See, e.g., Tennessee v. Davis, 100 U.S. 257 (1879); Missouri v.
Illinois, 180 U.S. 208 (1901); Georgia v. Tenn. Copper Co., 240
U.S. 650 (1916); New Jersey v. City of New York, 283 U.S. 473
(1931); Illinois v. City of Milwaukee, 406 U.S. 91 (1972).
4
20
Three decades later in AEP, the Court concluded
that nuisance claims based on interstate air pollution
were displaced by the Clean Air Act. See Suncor, 25
F.4th at 1259 (“What Milwaukee II did to the federal
common law of interstate water pollution, AEP did to
the federal common law of interstate air pollution.”).
Importantly, the Court did not hold, as petitioners contend, that “ ‘the basic scheme of the Constitution’ requires the application of a federal rule of decision” in
such cases, Pet. 26, or that “federal common law continues to govern in this area” despite being displaced
by statute, Pet. 16. To the contrary, the Court expressly declined to consider the “academic question whether, in the absence of the Clean Air Act . . . , the plaintiffs could state a federal common-law claim for
curtailment of greenhouse gas emissions,” because
“[a]ny such claim would be displaced by the federal
legislation authorizing EPA to regulate carbon-dioxide
emissions.” AEP, 564 U.S. at 423. The Court further
held that because the Clean Air Act displaced any relevant federal common law, “the availability vel non of
a state lawsuit depends, inter alia, on the preemptive
effect of the federal Act,” not whatever vestigial preemptive force the federal common law might once have
held. Id. at 429. The Fourth Circuit here was therefore
correct that “federal common law in this area ceases to
exist due to statutory displacement,” Pet. App. 21a, because this Court exactly so held in AEP.
The Ninth Circuit’s Kivalina decision, on which petitioners rely, confirms that any relevant federal common law was entirely extinguished by the Clean Air
Act, not merely stripped of its available remedies. The
plaintiffs in Kivalina brought federal common law
nuisance damages claims against oil companies and
utilities, alleging that the defendants’ “massive greenhouse gas emissions” caused climate-change-related
21
damages to their village. 696 F.3d at 853. Relying on
AEP, the court of appeals held that “the field has been
made the subject of comprehensive legislation by Congress,” and that “[w]hen Congress has acted to occupy
the entire field, that action displaces any previously
available federal common law action,” and “the type of
remedy asserted is not relevant to the applicability of
the doctrine of displacement.” Id. at 857 (emphases
added) (cleaned up). Stated differently, “displacement
of a federal common law right of action means displacement of remedies,” because “[j]udicial power can
afford no remedy unless a right that is subject to that
power is present”; when the federal common law has
been displaced, a claim under that law implicates no
justiciable right. Id. Importantly, the court of appeals
did not affirm a dismissal on the merits for failure to
state a claim. Rather, it affirmed dismissal for lack of
subject-matter jurisdiction because the federal common law claim was plainly unsubstantial. See id. at
855, 858; see also Hagans v. Lavine, 415 U.S. 528,
536–37 (1974). That is the same holding reached by
the court below: “Public nuisance claims involving interstate pollution . . . are nonexistent under federal
common law because they are statutorily displaced,”
and “since those claims are defunct, . . . a federal court
cannot exercise federal-question jurisdiction on that
basis.” Pet. App. 24a–25a.
In light of the limited scope of federal common law
nuisance that once existed concerning interstate pollution, and its displacement by the Clean Air Act and
Clean Water Act, the court of appeals was correct to
conclude that there was no basis for creating a new
category of federal common law encompassing the traditional state-law tort and statutory claims the City
has alleged. The court was equally correct in holding
that petitioners had not shown any conflict between
22
Maryland law and any uniquely federal interest, a
strict prerequisite for federal common lawmaking.
The requirements for creating new categories of federal common law are, and should be, demanding;
“[j]udicial lawmaking in the form of federal common
law plays a necessarily modest role under a Constitution that vests the federal government’s ‘legislative
Powers’ in Congress and reserves most other regulatory authority to the States.” Rodriguez v. F.D.I.C.,
140 S. Ct. 713, 717 (2020) (quoting U.S. Const. art. I,
§ 1). “[B]efore federal judges may claim a new area for
common lawmaking, strict conditions must be satisfied,” id., the most basic being: a “specific,” “concrete,”
and “significant conflict” between a uniquely federal
interest and the use of state law, O’Melveny & Myers
v. F.D.I.C., 512 U.S. 79, 87–88 (1994); see also Miree v.
DeKalb Cty., 433 U.S. 25, 31 (1977); Wallis v. Pan Am.
Petroleum Corp., 384 U.S. 63, 68–72 (1966). “The cases in which federal courts may engage in common lawmaking are few and far between,” and this Court has
“underscore[d] the care federal courts should exercise
before taking up an invitation to try their hand at
common lawmaking,” lest they “ma[k]e the mistake of
moving too quickly past important threshold questions at the heart of our separation of powers.” Rodriguez, 140 S. Ct. at 716, 718.
Petitioners “never establish[ed] a significant conflict
between Baltimore’s state-law claims . . . and any federal interests” below, Pet. App. 16a, and they do not
identify any specific conflict or government interest in
their petition here. Petitioners assert that “the basic
scheme of the Constitution” requires federal law to “govern” any claim “for injuries allegedly caused by” climate
change, no matter how those claims are pleaded or by
whom, and that it would be “inconsistent with our con-
23
stitutional structure” to allow a municipality to bring a
state-law claim like Baltimore’s against a private defendant. Pet. 3, 7, 28 (citation omitted). But even traditional conflict preemption analysis does not countenance a
“freewheeling judicial inquiry into whether a state statute is in tension with federal objectives,” because “such
an endeavor would undercut the principle that it is Congress rather than the courts that pre-empts state law.”
Chamber of Com. of U.S. v. Whiting, 563 U.S. 582, 607
(2011) (cleaned up); see, e.g., Miree, 433 U.S. at 32. This
Court has recently reiterated, moreover, that “[i]nvoking some brooding federal interest or appealing to a judicial policy preference should never be enough to win
preemption of a state law” and instead “a litigant must
point specifically to a constitutional text or a federal
statute that does the displacing or conflicts with state
law.” Virginia Uranium, Inc. v. Warren, 139 S. Ct. 1894,
1901 (2019) (cleaned up). Petitioners have not even done
that much. Their arguments would be insufficient to establish that federal law preempts Baltimore’s claims,
let alone that Baltimore’s state-law claims for relief so
intrude on a uniquely federal interest that the Court
should make new common law to wrest lawmaking power from the State of Maryland.
At bottom, there is no existing federal common law
that could apply to Baltimore’s claims, and petitioners have not come close to showing that new federal
common law should be crafted. The court of appeals
was correct and no further review by this Court is
warranted.
2. The Fourth Circuit’s determination that federal
common law cannot provide a basis for overcoming the
well-pleaded complaint rule unless complete preemption or Grable are satisfied also correctly applies this
Court’s instructions on the scope of arising-under ju-
24
risdiction. A case arises under federal law “only when
the plaintiff ’s statement of his own cause of action
shows that it is based upon federal law.” Vaden v. Discover Bank, 556 U.S. 49, 60 (2009) (quoting Louisville
& Nashville R. Co. v. Mottley, 211 U.S. 149, 152 (1908)).
Federal “[j]urisdiction may not be sustained on a theory that the plaintiff has not advanced.” Beneficial Nat’l
Bank v. Anderson, 539 U.S. 1, 12 (2003) (Scalia, J., dissenting) (quoting Merrell Dow Pharms., 478 U.S. at
809 n.6). Jurisdiction also may not rest on “a federal
defense, including the defense of preemption, even if
the defense is anticipated in the plaintiff ’s complaint,
and even if both parties admit that the defense is the
only question truly at issue in the case.” Franchise Tax
Bd., 463 U.S. at 14. As masters of their complaints,
plaintiffs “may avoid federal jurisdiction by exclusive
reliance on state law.” Caterpillar, 482 U.S. at 392.
This Court has recognized under the well-pleaded
complaint rule only two types of state-law claims that
arise under federal law: (1) the “special and small category” of state-law actions that satisfy Grable, see,
e.g., Gunn, 568 U.S. at 258 (citation omitted); and (2)
cases completely preempted by a federal statute that
itself creates a cause of action “Congress intended . . .
to be exclusive,” e.g., Beneficial Nat’l Bank, 539 U.S.
at 9 n.5. The Court has recently reiterated that it
“would not expect Congress to take [the] extraordinary step” of “stripping state courts of jurisdiction to
hear their own state claims” “by implication,” and that
only “[e]xplicit, unmistakable, and clear” congressional directives will justify such an intrusion on federalism and state sovereignty. Atl. Richfield Co. v. Christian, 140 S. Ct. 1335, 1351 (2020).
Petitioners assert that Baltimore’s state-law claims
for relief “inherently are federal [common law] claims”
25
and that the artful pleading doctrine “prohibits” Baltimore from “dressing them in state-law garb.” Pet. 30.
Petitioners cite no case where a court has used federal
common law and the artful pleading doctrine together
in this way because no court has done so. This Court
has explained that the “corollary of the well-pleaded
complaint rule” embodied in the artful pleading doctrine is that “Congress may so completely pre-empt a
particular area that any civil complaint raising this
select group of claims is necessarily federal in character,” Metro. Life, 481 U.S. at 63–64 (emphasis added),
because then and only then “such suit is purely a creature of federal law, notwithstanding the fact that state
law would provide a cause of action” in absence of the
statute. Franchise Tax Bd., 463 U.S. at 22–23. Even
before Grable, therefore, courts recognized that “the
only state claims that are ‘really’ federal claims and
thus removable to federal court, . . . are those that are
preempted completely by federal law,” because artful
pleading and complete preemption are two sides of the
same coin. Goepel v. Nat’l Postal Mail Handlers Union,
a Div. of LIUNA, 36 F.3d 306, 311–12 (3d Cir. 1994).
Petitioners say “[t]here is no plausible reason why”
complete preemption and the artful pleading doctrine
should be limited to statutes. Pet. 30 (citation omitted). But the reason for that limitation is obvious.
Complete preemption requires “extraordinary preemptive power,” which this Court has been “reluctant
to find” even in federal legislation, Metro Life, 481 U.S.
at 65, because it implicates severe federalism concerns.
Petitioners rely on the second footnote in Federated
Department Stores, Inc. v. Moitie, 452 U.S. 394, 397 n.2
(1981), for its statement that courts faced with a motion to remand should “seek to determine whether the
real nature of the claim is federal, regardless of plaintiff ’s characterization.” Pet. 6. This Court explained
26
more than 20 years ago that the “marginal comment”
in “Moitie’s enigmatic footnote” “caused considerable
confusion in the circuit courts” and “will not bear the
heavy weight lower courts have placed on it.” Rivet v.
Regions Bank of La., 522 U.S. 470, 477–78 (1998). The
Court thus expressly limited Moitie to its “case-specific
context.” Id. at 477. The Court clarified in the same
opinion: “The artful pleading doctrine allows removal
where federal law completely preempts a plaintiff ’s
state-law claim.” Id. at 475. This Court has never held
that federal common law may completely preempt state
law and has never applied the artful pleading doctrine
outside the complete preemption context.
A case that necessarily raises a substantial issue of
federal common law and could be adequately adjudicated in federal court without disturbing any congressionally-approved federal-state balance could be removable under Grable. The corollary is equally true:
There is no reason why a case like this, which bears
at most a passing connection to an insubstantial and,
even in petitioners’ view, displaced issue of federal
common law, must be heard in the federal courts if
the four-part inquiry under Grable cannot otherwise
be satisfied.
The Grable analysis, which this Court has taken
pains to develop, “provides ready answers to jurisdictional questions” and “gives guidance whenever borderline cases crop up,” including those implicating
federal common law. Manning, 578 U.S. at 392. The
Court applied exactly that “guidance” in Manning,
stating that the Grable framework set forth the appropriate analysis for determining whether a state
law cause of action arises under the federal Securities
Exchange Act and is thus within the exclusive jurisdiction of the district courts pursuant to 15 U.S.C.
27
§ 78aa(a). See Manning, 578 U.S. at 383–84. The
Court declined to adopt the “untested approach” advocated by the petitioner there, because “forcing
courts to toggle back and forth between [that
approach] and the ‘arising under’ standard, would
undermine consistency and predictability in litigation.” Id. at 392; see also Hertz Corp. v. Friend, 559
U.S. 77, 79 (2010) (“[A]dministrative simplicity is a
major virtue in a jurisdictional statute.”). Petitioners
offer no justification for treating federal common law
differently than any other body of federal law encompassed by Grable, because there is none. This Court’s
precedent is fully up to the task. If a substantial, disputed question of federal common law is necessarily
raised in a state-law complaint and can be adjudicated in federal court without offending the federal-state
balance approved by Congress, there is federal question jurisdiction under § 1331.
Petitioners suggest that district judges should analyze removal disputes “without resort to the doctrine of Grable” and complete preemption. Pet. 21–
22. But that would return lower courts to the “unruly”
and “muddled backdrop” of jurisprudence that Grable was intended to overcome. Manning, 578 U.S. at
385. Worse still, petitioners’ proposed approach
would massively expand the substantive and jurisdictional powers of federal judges and introduce
grave separation of powers and federalism problems.
Under petitioners’ approach, a district judge could
recognize a new area of federal common law, find
that it extinguishes state law, and bootstrap its own
jurisdiction over a state-law complaint onto those
findings, all without any guidance from Congress.
Understandably, no court has adopted this approach.
The Fourth Circuit was correct to “resoundingly” reject it. Pet. App. 12a.
28
The Questions Presented have minimal
practical importance and this case is a poor
vehicle for addressing them.
The two Questions Presented do not warrant this
Court’s review for the additional reasons that they
arise in only a single, discrete category of cases and
are not well-presented in this petition.
1. The first Question does not warrant review because it raises an extremely narrow issue of federal
common law and is not squarely presented in any
event. Federal common law applies in only a “few,”
“restricted” “areas,” Texas Indus., Inc. v. Radcliff Materials, Inc., 451 U.S. 630, 640 (1981) (citation omitted), and the cases affected by petitioners’ first Question would necessarily be few in number even if
petitioners were correct that federal common law applies here. By its own terms, the Question is even further limited to state-law “claims seeking redress for
injuries allegedly caused by the effect of interstate
greenhouse-gas emissions on the global climate.” Pet.
I. The only potentially affected cases are other lawsuits targeting the fossil-fuel industry’s alleged history of deceiving the public concerning climate change,
a tiny fraction of the thousands of cases remanded
each year to state court.
The first Question is also not squarely presented because, as discussed above, the court of appeals expressly declined to reach whether petitioners could
raise an ordinary preemption defense to Baltimore’s
claims, leaving that for the state court on remand.
See, e.g., Pet. App. 10a n.2. The Maryland courts will
resolve on the merits whether federal law “governs” to
the exclusion of Maryland law. Petitioners’ speculation that “our national energy policy may be decided
by juries in state courts” absent review now, Pet. 32,
29
is baseless, because Baltimore’s claims hinge on petitioners’ alleged misrepresentations to consumers and
the public. Neither Baltimore’s theories of liability nor
its requested relief implicates “national energy policy”
as petitioners suggest.
2. The second Question is also of minimal practical
importance, and petitioners do not seriously contend
otherwise. The most they say is that federal common
law’s relationship to Grable and the well-pleaded complaint rule “is a significant jurisdictional question that
arises in several contexts,” from “foreign affairs to tribal relations.” Pet. 31. Yet they provide no examples of
cases where the Court’s existing jurisprudence is inadequate to resolve the issue. Grable already “provides
ready answers to jurisdictional questions” and “gives
guidance whenever borderline cases crop up,” Manning, 578 U.S. at 392, including the “few” “restricted”
“areas” in which federal common law operates, Texas
Indus., 451 U.S. at 640. This narrowness of the displaced federal common law on which petitioners’ argument is based also makes this case a poor vehicle to
consider the second Question Presented. There is no
need, and petitioners offer no justification, for granting review to consider whether to create a third exception to that rule that would govern only this case and
similarly pleaded state-law climate-deception cases.
30
CONCLUSION
For the reasons stated the petition for writ of certiorari should be denied.
Respectfully submitted,
VIcTor M. Sher
Counsel of Record
MaTThew K. EdlIng
MarTIn D. QuIñones
MIchael Burger
Sher Edling LLP
100 Montgomery St.,
Ste. 1410
San Francisco, CA 94104
(628) 231-2500
vic@sheredling.com
December 19, 2022
Sara Gross
Baltimore City
Law Department
100 N. Holliday Street,
Suite 109
Baltimore, MD 21202
(410) 396-3947
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