Amicus Curiae Brief — Shell PLC, fka Royal Dutch Shell PLC, et al., Petitioners v. City and County of Honolulu, Hawaii, et al.
Supreme Court briefDec 10, 2024
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Nos. 23-947 and 23-952
In the Supreme Court of the United States
SUNOCO LP, ET AL., PETITIONERS
v.
CITY AND COUNTY OF HONOLULU, HAWAII, ET AL.
SHELL PLC, FKA ROYAL DUTCH SHELL PLC, ET AL.,
PETITIONERS
v.
CITY AND COUNTY OF HONOLULU, HAWAII, ET AL.
ON PETITIONS FOR WRITS OF CERTIORARI
TO THE SUPREME COURT OF HAWAII
BRIEF FOR THE UNITED STATES AS AMICUS CURIAE
ELIZABETH B. PRELOGAR
Solicitor General
Counsel of Record
TODD KIM
Assistant Attorney General
EDWIN S. KNEEDLER
Deputy Solicitor General
FREDERICK LIU
Assistant to the Solicitor
General
CHRISTINE W. ENNIS
ROBERT P. STOCKMAN
Attorneys
Department of Justice
Washington, D.C. 20530-0001
SupremeCtBriefs@usdoj.gov
(202) 514-2217
QUESTION PRESENTED
Whether the Hawaii Supreme Court correctly affirmed the denial of petitioners’ motion to dismiss, which
argued that respondents’ state-law claims alleging the
deceptive marketing of fossil-fuel products were either
governed by the federal common law of transboundary air
pollution or preempted by the Clean Air Act, 42 U.S.C.
7401 et seq.
(I)
TABLE OF CONTENTS
Page
Interest of the United States....................................................... 1
Statement ...................................................................................... 1
Discussion ...................................................................................... 6
A. This Court lacks jurisdiction to review the Hawaii
Supreme Court’s interlocutory decision, and the
existence of pending constitutional issues counsels
against review at this time ............................................... 7
B. The merits of the decision below do not warrant
this Court’s review at this time ...................................... 14
C. Petitioners have not demonstrated that any
appellate court would have reached a different
outcome than the court below ........................................ 19
Conclusion ................................................................................... 23
TABLE OF AUTHORITIES
Cases:
Adams v. Robertson, 520 U.S. 83 (1997) ....................... 12, 13
American Elec. Power Co. v. Connecticut,
564 U.S. 410 (2011).................................................. 14, 15, 16
Bell v. Cheswick Generating Station, 734 F.3d 188
(3d Cir. 2013), cert. denied, 572 U.S. 1149 (2014) ............ 22
BMW of N. Am., Inc. v. Gore, 517 U.S. 559 (1996) ............ 12
Brown-Forman Corp. v. Miller,
528 S.W.3d 886 (Ky. 2017) .................................................. 22
City of New York v. Chevron Corp.,
993 F.3d 81 (2d Cir. 2021) ............................................. 19-21
Connecticut v. Exxon Mobil Corp.,
83 F.4th 122 (2d Cir. 2023) ................................................. 21
Coventry Health Care of Missouri, Inc. v. Nevils,
576 U.S. 1048 (2015)............................................................ 11
(III)
IV
Cases—Continued:
Page
Coventry Health Care of Missouri, Inc. v. Nevils,
581 U.S. 87 (2017) ............................................................... 10
Cox Broad. Corp. v. Cohn, 420 U.S. 469 (1975) ................ 8, 9
Dan’s City Used Cars, Inc. v. Pelkey, 569 U.S. 251
(2013) .............................................................................. 10, 11
Flynt v. Ohio, 451 U.S. 619 (1981) ................................... 9, 10
Freeman v. Grain Processing Corp., 848 N.W.2d 58
(Iowa), cert. denied, 574 U.S. 1026 (2014) ........................ 22
Gordon Coll. v. DeWeese-Boyd, 142 S. Ct. 952 (2022) ....... 11
Honolulu v. Sunoco LP:
No. 20-cv-163, 2021 WL 531237
(D. Haw. Feb. 12, 2021) ........................................... 2, 16
39 F.4th 1101 (9th Cir. 2022), cert. denied,
143 S. Ct. 1795 (2023) ........................................... 2, 3, 16
Howell v. Mississippi, 543 U.S. 440 (2005) ......................... 12
Illinois v. Milwaukee, 731 F.2d 403 (7th Cir. 1984),
cert. denied, 469 U.S. 1196 (1985) ............................... 21, 22
International Paper Co. v. Ouellette,
479 U.S. 481 (1987).................................................. 15, 17, 18
Jefferson v. City of Tarrant, 522 U.S. 75 (1997) ................. 14
Johnson v. California, 541 U.S. 428 (2004) .......................... 8
Merrick v. Diageo Americas Supply, Inc.,
805 F.3d 685 (6th Cir. 2015) ............................................... 22
North Carolina ex rel. Cooper v. TVA, 615 F.3d 291
(4th Cir. 2010), cert. denied, 564 U.S. 1054 (2011) ..... 21, 22
Northwest Airlines, Inc. v. Transport Workers,
451 U.S. 77 (1981) ............................................................... 14
Pierce County v. Guillen, 537 U.S. 129 (2003) ................. 7, 8
Puerto Rico Dep’t of Consumer Affairs v. Isla
Petroleum Corp., 485 U.S. 495 (1988) ......................... 15, 16
Republic Natural Gas Co. v. Oklahoma,
334 U.S. 62 (1948) ................................................................. 8
V
Cases—Continued:
Page
Rodriguez v. FDIC, 589 U.S. 132 (2020) ............................. 16
Suncor Energy (U.S.A.) Inc. v. Board of County
Comm’rs of Boulder County:
143 S. Ct. 78 (2022) ............................................................ 3
143 S. Ct. 1795 (2023) ........................................................ 3
Sunoco LP v. Honolulu, 143 S. Ct. 1795 (2023) ................... 3
Wilson v. Hawaii, No. 23-7517 (Dec. 9, 2024) .................... 11
Constitution, statutes, and rule:
U.S. Const.:
Art. I, § 8, Cl. 3 (Interstate and Foreign
Commerce Clauses) ........................................... 6, 12, 13
Amend. XIV, § 1 (Due Process Clause) .............. 6, 12, 13
Clean Air Act, 42 U.S.C. 7401 et seq. ..................................... 4
Clean Water Act, 33 U.S.C. 1251 et seq. .............................. 15
28 U.S.C. 1257(a) ........................................................... 7, 8, 11
43 U.S.C. 1802 ........................................................................ 10
43 U.S.C. 1802(1) ................................................................... 10
Haw. R. Civ. P. 12(b)(6) ............................. 3, 4, 6, 9, 10, 12, 13
In the Supreme Court of the United States
No. 23-947
SUNOCO LP, ET AL., PETITIONERS
v.
CITY AND COUNTY OF HONOLULU, HAWAII, ET AL.
No. 23-952
SHELL PLC, FKA ROYAL DUTCH SHELL PLC, ET AL.,
PETITIONERS
v.
CITY AND COUNTY OF HONOLULU, HAWAII, ET AL.
ON PETITIONS FOR WRITS OF CERTIORARI
TO THE SUPREME COURT OF HAWAII
BRIEF FOR THE UNITED STATES AS AMICUS CURIAE
INTEREST OF THE UNITED STATES
This brief is submitted in response to the Court’s orders inviting the Solicitor General to express the views
of the United States. In the view of the United States,
the petitions for writs of certiorari should be denied.
STATEMENT
1. Petitioners are “extractors, producers, refiners,
manufacturers, distributors, promoters, marketers,
and/or sellers of fossil fuel products”—namely, “coal,
oil, and natural gas.” Compl. ¶¶ 4-5. In 2020, the City
(1)
2
and County of Honolulu (Honolulu) brought suit against
petitioners in Hawaii state court, alleging five claims
under Hawaii state common law: public nuisance, private nuisance, strict-liability failure to warn, negligent
failure to warn, and trespass. Compl. ¶¶ 154-205. All five
state-law claims rested on the same theory of liability:
that petitioners have known for decades that greenhousegas emissions from the use of their fossil-fuel products
would contribute to climate change; that instead of warning consumers about those consequences, petitioners
engaged in deceptive marketing by concealing and mispresenting the dangers of using their fossil-fuel products; and that as a result of that deception, consumers
used more of petitioners’ fossil-fuel products than they
otherwise would have, causing “a substantial portion” of
the injuries that Honolulu has suffered because of climate change. Compl. ¶¶ 7-13.
Petitioners removed the case to federal court pursuant to various statutes. Honolulu v. Sunoco LP, No. 20cv-163, 2021 WL 531237, at *1-*2 (D. Haw. Feb. 12, 2021).
The federal district court rejected each ground for removal and remanded the case to state court. Id. at *9.
The district court observed that Honolulu had “chosen
to pursue claims that target [petitioners’] alleged concealment of the dangers of fossil fuels, rather than the
acts of extracting, processing, and delivering those
fuels.” Id. at *1. Viewing the claims “in th[at] light,” the
court found “no basis for federal jurisdiction.” Ibid.
The Ninth Circuit affirmed. Honolulu v. Sunoco LP,
39 F.4th 1101 (2022), cert. denied, 143 S. Ct. 1795 (2023).
Like the district court, the Ninth Circuit understood
Honolulu’s claims to be “about whether oil and gas companies misled the public about dangers from fossil
fuels.” Id. at 1113. Given the nature of Honolulu’s claims,
3
the Ninth Circuit rejected petitioners’ contention that
the suit “belong[ed] in federal court.” Id. at 1106. Petitioners filed a petition for a writ of certiorari on the
question whether Honolulu’s state-law suit was removable to federal court, and this Court denied review.
Sunoco LP v. Honolulu, 143 S. Ct. 1795 (2023) (No. 22523).1
2. In 2021, the Honolulu Board of Water Supply joined
this suit as a plaintiff. 23-952 Pet. App. 7a, 107a. Honolulu and the Board, respondents here, filed an amended
complaint with the same claims and theory of liability—
i.e., that petitioners deceptively marketed their fossilfuel products. Id. at 100a-234a.
Petitioners moved under Hawaii Rule of Civil Procedure 12(b)(6) to dismiss the amended complaint for failure to state a claim. Joint Mem. in Support of Mot. to
Dismiss for Failure to State a Claim, Cir. Ct. Doc. 347,
at 1-29 (June 2, 2021) (Mem.). Petitioners characterized
respondents’ claims as “seek[ing] to regulate transboundary and international emissions and pollution.” Mem. 11.
Petitioners then argued that federal law precludes respondents’ claims for two reasons. Mem. 11-24. First,
petitioners contended that “federal common law governs all of [respondents’] claims.” Mem. 5. Second, petiThis Court called for the views of the Solicitor General on a petition seeking review of whether a similar state-law suit was removable to federal court. Suncor Energy (U.S.A.) Inc. v. Board of County
Comm’rs of Boulder County, 143 S. Ct. 78 (2022) (No. 21-1550). The
government filed a brief expressing the view that the suit was not
removable and that the certiorari petition should be denied. U.S.
Cert. Amicus Br. at 6-7, Suncor, supra (No. 21-1550). The Court
subsequently denied review in that case and others—including this
one—raising the same issue. See, e.g., Suncor Energy (U.S.A.) Inc.
v. Board of County Comm’rs of Boulder County, 143 S. Ct. 1795
(2023) (No. 21-1550).
1
4
tioners argued that “even if [respondents’] common law
claims could be governed by state law,” the claims would
be “preempted” by the Clean Air Act, 42 U.S.C. 7401
et seq. Mem. 5; see Mem. 22-24.
In 2022, the state trial court denied petitioners’ Rule
12(b)(6) motion. 23-952 Pet. App. 84a-95a. The court
explained that “[s]tate law tort claims traditionally involve four elements: duty, breach, causation, and harm
or damages.” Id. at 86a. The court understood all of respondents’ claims to rely on “the same basic theory of
liability”: that petitioners breached “a duty to disclose
and not be deceptive about the dangers of fossil fuel
emissions,” thereby increasing fossil-fuel consumption
and exacerbating the effects of climate change in Honolulu. Id. at 86a & n.1 (emphasis omitted).
The trial court then rejected petitioners’ arguments
that federal statutory and common law precludes respondents’ claims. 23-952 Pet. App. 88a-93a. The court
explained that “the Clean Air Act supplants the federal
common law invoked by [petitioners],” id. at 92a, and
that there is no federal “common law” policy “against
timely and accurate disclosure of harms from fossil fuel
emissions” in any event, id. at 90a-91a. The court likewise rejected petitioners’ Clean Air Act preemption argument on the ground that there is no federal “statutory” policy against “timely and accurate disclosure” of
such harms. Id. at 90a; see id. at 93a. The court, however, granted petitioners leave to file an interlocutory
appeal to the Hawaii Intermediate Court of Appeals.
23-947 Pet. App. 86a-90a.
3. In 2023, the Hawaii Supreme Court accepted transfer of the appeal, 23-952 Pet. App. 96a-97a, and affirmed
the denial of petitioners’ Rule 12(b)(6) motion, id. at 1a76a.
5
As an initial matter, the Hawaii Supreme Court rejected petitioners’ characterization of respondents’ suit.
23-952 Pet. App. 2a-3a. The court explained that, contrary to petitioners’ contention, respondents’ suit “does
not seek to regulate emissions or curb energy production.” Id. at 34a. Instead, the court emphasized, respondents’ suit “seeks to hold [petitioners] accountable for allegedly (1) failing to warn about the dangers of their
fossil fuel products and (2) deceptively promoting those
products.” Ibid.; see id. at 39a-40a.
The Hawaii Supreme Court then rejected petitioners’ reliance on federal common law. 23-952 Pet. App.
38a-56a. First, the court held that the federal common
law on which petitioners relied—i.e., the federal common law of “transboundary pollution”—had been displaced by the Clean Air Act. Id. at 39a. The court observed that petitioners themselves had “acknowledge[d]”
as much. Id. at 47a. Second, the court held that “[e]ven
if federal common law governing interstate pollution
claims had not been displaced, [respondents’] claims
would not be preempted” because respondents’ claims
target petitioners’ “allegedly tortious marketing conduct,
not pollution traveling from one state to another.” Id.
at 52a-53a. The court noted that petitioners had “fail[ed]
to point to any case recognizing federal common law
governing tortious marketing suits.” Id. at 55a. And
the court found that petitioners had “waived any argument to expand federal common law to cover [respondents’] claims.” Ibid.
The Hawaii Supreme Court also rejected petitioners’
Clean Air Act preemption argument. 23-952 Pet. App.
56a-69a. The court explained that the Clean Air Act “regulates pollution,” not “marketing conduct,” and “does
not concern itself in any way with * * * the use of de-
6
ception to promote the consumption of fossil fuel products.” Id. at 64a. The court concluded that “because
[respondents’] claims arise from [petitioners’] alleged
failure to warn and deceptive marketing conduct, not
emissions-producing activities regulated by the [Clean
Air Act],” the statute “does not preempt [respondents’]
claims.” Id. at 62a.
DISCUSSION
Respondents brought suit alleging that petitioners
violated various state common-law duties by deceptively marketing fossil-fuel products. Petitioners filed
a Rule 12(b)(6) motion to dismiss, arguing that respondents’ claims are either governed by the federal common
law of transboundary air pollution or preempted by the
Clean Air Act. The Hawaii Supreme Court rejected those
arguments and affirmed the denial of petitioners’ motion, thereby allowing the suit to proceed.
The petitions for writs of certiorari seeking review of
that ruling should be denied for multiple interrelated
reasons.2 This Court does not have jurisdiction to review
the Hawaii Supreme Court’s interlocutory decision, and
even if it did, further review at this time would be unwarranted. In addition to presenting federal-commonlaw and statutory preemption arguments in their Rule
12(b)(6) motion, petitioners have taken the position in
their answers filed in the trial court that respondents’
state-law claims are barred by the Interstate and Foreign Commerce Clauses, the Due Process Clause, and
federal primacy in foreign affairs. Those constitutional
In a brief filed simultaneously with this one, the United States
has expressed the view that the motion for leave to file a bill of complaint in Alabama v. California, No. 158, Orig., should likewise be
denied. The proposed complaint in that case seeks to enjoin other
state-court suits brought against private energy companies.
2
7
arguments may ultimately be held to foreclose respondents’ state-law claims to the extent they are based on
emissions or other conduct outside Hawaii. Yet those
defenses have not been addressed by the Hawaii Supreme Court, or even the trial court. The existence of
those pending constitutional issues counsels against review now, which would risk piecemeal review of federal
issues by this Court.
A. This Court Lacks Jurisdiction To Review The Hawaii
Supreme Court’s Interlocutory Decision, And The
Existence Of Pending Constitutional Issues Counsels
Against Review At This Time
The Hawaii Supreme Court’s interlocutory decision
does not satisfy 28 U.S.C. 1257(a)’s final-judgment rule.
This Court therefore lacks jurisdiction to review the decision below. Moreover, even if that decision were a final judgment, the extent to which the Constitution itself
may preclude respondents’ claims would not be properly
before this Court, and the interlocutory nature of the
decision below would counsel against the Court’s review
at this time.
1. Under Section 1257(a), this Court’s jurisdiction is
limited to review of “[f ]inal judgments or decrees rendered by the highest court of a State in which a decision
could be had.” 28 U.S.C. 1257(a). “As a general matter,
to be reviewed by this Court, a state-court judgment
must be final ‘as an effective determination of the litigation and not of merely interlocutory or intermediate
steps therein.’ ” Pierce County v. Guillen, 537 U.S. 129,
140 (2003) (citation and some internal quotation marks
omitted). The Hawaii Supreme Court’s decision in this
case is not final in that sense because it affirms the denial of a motion to dismiss and contemplates further proceedings. 23-952 Pet. App. 2a.
8
This Court has “acknowledged, however, that certain
state-court judgments can be treated as final for jurisdictional purposes, even though further proceedings are
to take place in the state courts.” Guillen, 537 U.S. at
140-141. In Cox Broadcasting Corp. v. Cohn, 420 U.S.
469 (1975), this Court divided state-court judgments of
that kind into “four exceptional categories.” Johnson v.
California, 541 U.S. 428, 429 (2004) (per curiam). As
the parties invoking this Court’s jurisdiction, petitioners bear the burden of establishing that this case falls
within one of the four. See Republic Natural Gas Co. v.
Oklahoma, 334 U.S. 62, 70-71 (1948).
Petitioners invoke only the fourth Cox category. 23947 Cert. Reply Br. 3-4; 23-952 Cert. Reply Br. 9-11.
That category encompasses cases in which (1) “the federal issue has been finally decided in the state courts
with further proceedings pending in which the party
seeking review here might prevail on the merits on nonfederal grounds, thus rendering unnecessary review of
the federal issue by this Court”; (2) “reversal of the
state court on the federal issue would be preclusive of
any further litigation on the relevant cause of action”;
and (3) “a refusal immediately to review the state-court
decision might seriously erode federal policy.” Cox, 420
U.S. at 482-483.
Petitioners have not met their burden of showing
that this case satisfies those factors. With respect to the
first factor, this is not a case in which all that remains is
the prospect that petitioners “might prevail on the merits on nonfederal grounds.” Cox, 420 U.S. at 482-483 (emphasis added). Petitioners could instead succeed, in substantial part, on federal grounds under the Constitution.
Petitioners have not shown that jurisdiction lies under
Section 1257(a) in these circumstances. To the contrary,
9
this Court “observed in Cox that in most, if not all, of
the cases falling within the four exceptions, not only was
there a final judgment on the federal issue for purposes
of state-court proceedings, but also there were no other
federal issues to be resolved.” Flynt v. Ohio, 451 U.S.
619, 621 (1981) (per curiam). Treating this case as nevertheless falling within the fourth exception would risk
“piecemeal review with respect to federal issues.” Ibid.
With respect to the second factor, petitioners’ Rule
12(b)(6) motion relied on the federal common law of
transboundary air pollution and the Clean Air Act. See
pp. 3-4, supra. Even under petitioners’ own theory,
those authorities would preclude respondents’ claims
only to the extent those claims “seek to apply state law
extraterritorially to regulate transboundary pollution.”
23-947 Cert. Reply Br. 1 (emphasis added). Thus, even
if this Court were to accept petitioners’ arguments, respondents would not be precluded from pursuing claims
involving in-state deceptive practices or in-state pollution. Br. in Opp. 8. And although petitioners dispute
whether respondents have preserved any in-state
claims, see 23-947 Cert. Reply Br. 3; 23-952 Cert. Reply
Br. 10, that issue would itself be one for the state courts
to address in further proceedings. Petitioners have
therefore failed to show that reversal of the decision below on petitioners’ federal-common-law and Clean Air
Act arguments would be “preclusive of further litigation” on respondents’ claims. Cox, 420 U.S. at 482-483.
Petitioners have also failed to show that “a refusal
immediately to review the state-court decision might seriously erode federal policy.” Cox, 420 U.S. at 483. To
satisfy that factor, it is not enough to assert that the
state court decided a federal issue erroneously. If that
were sufficient, the “fourth [Cox] exception [would]
10
swallow the rule.” Flynt, 451 U.S. at 622. Instead, the
question is whether this Court’s resolution of the federal issue “can await final judgment without any adverse effect upon important federal interests.” Ibid. The
party invoking this Court’s jurisdiction bears the burden of showing that “delaying review” until final judgment might “seriously erode” an “identifiable federal
policy.” Ibid.
Petitioners have failed to meet that burden here. In
attempting to satisfy this requirement under the fourth
Cox category, petitioners do not rely on either federal
common law or the Clean Air Act. 23-947 Cert. Reply
Br. 3-4; 23-952 Cert. Reply Br. 9-11. Instead, petitioners
invoke “federal interests in the regulation of fossil fuels
and greenhouse-gas emissions.” 23-947 Cert. Reply Br.
3. But petitioners do not point to any “identifiable federal policy” embodying those interests—especially with
respect to claims of deceptive marketing—that would
demonstrate that the interests could not be adequately
vindicated by this Court’s review after final judgment.
Flynt, 451 U.S. at 622. Petitioners also invoke 43 U.S.C.
1802(1) and the Constitution. 23-952 Cert. Reply Br. 11;
23-947 Cert. Reply Br. 3-4. But this case does not implicate Section 1802(1), which merely describes the
“purposes” of a statute concerning the Outer Continental Shelf. 43 U.S.C. 1802. And petitioners’ Rule 12(b)(6)
motion did not raise, and the state courts did not address, any argument that the Constitution itself precludes respondents’ claims. See pp. 11-13, infra.
Petitioners’ reliance (23-947 Cert. Reply Br. 3) on
Coventry Health Care of Missouri, Inc. v. Nevils, 581
U.S. 87 (2017), and Dan’s City Used Cars, Inc. v. Pelkey,
569 U.S. 251 (2013), is likewise misplaced. Although this
Court did not address its jurisdiction in either decision,
11
the Court presumably concluded that each case fell
within the fourth Cox category because of an express
preemption clause. See U.S. Cert. Amicus Br. at 19-20,
Coventry Health Care of Missouri, Inc. v. Nevils, 576
U.S. 1048 (2015) (No. 13-1305); U.S. Amicus Br. at 9 n.2,
Dan’s City, supra (No. 12-52). The statute at issue in
Dan’s City, moreover, contained an express finding by
Congress that “state governance of intrastate transportation of property had become ‘unreasonably burdensome’ to ‘free trade, interstate commerce, and American consumers.’ ” 569 U.S. at 256 (brackets and citation
omitted). Because petitioners fail to point to any similar
expression of federal policy that would call for immediate review here, petitioners have not met their burden
of showing that this case fits the fourth Cox category.
This Court therefore lacks jurisdiction under Section
1257(a) to review the Hawaii Supreme Court’s interlocutory decision. “At the very least,” the need to resolve
“this threshold jurisdictional issue would complicate
[the Court’s] review.” Gordon Coll. v. DeWeese-Boyd,
142 S. Ct. 952, 955 (2022) (Alito, J., respecting the denial
of certiorari); see Wilson v. Hawaii, No. 23-7517 (Dec.
9, 2024), slip op. 7 (Thomas, J., respecting the denial of
certiorari) (explaining that the Hawaii Supreme Court’s
decision was “an interlocutory order over which [this
Court] may not have jurisdiction”); Wilson, supra, slip
op. 4 (Gorsuch, J., respecting the denial of certiorari)
(emphasizing the “interlocutory” nature of the Hawaii
Supreme Court’s decision).
2. Section 1257(a) further limits this Court’s review
to “right[s] * * * specially set up or claimed under the
Constitution or the treaties or statutes of, or * * * authority exercised under, the United States.” 28 U.S.C.
1257(a) (emphasis added). Accordingly, “this Court has
12
almost unfailingly refused to consider any federal-law
challenge to a state-court decision unless the federal
claim ‘was either addressed by or properly presented to
the state court that rendered the decision [this Court]
ha[s] been asked to review.’ ” Howell v. Mississippi, 543
U.S. 440, 443 (2005) (per curiam) (quoting Adams v.
Robertson, 520 U.S. 83, 86 (1997) (per curiam)).
In moving to dismiss under Rule 12(b)(6), petitioners
argued that respondents’ claims were either governed
by federal common law or preempted by the Clean Air
Act. Mem. 5. To the extent petitioners’ Rule 12(b)(6)
motion invoked the Constitution at all, it did so only in
connection with their federal-common-law argument,
without citing any particular constitutional provision.
See, e.g., Mem. 12 (“ ‘The basic scheme of the Constitution . . . demands’ that federal common law apply in
these circumstances.”) (brackets and citation omitted).
Petitioners’ Rule 12(b)(6) motion did not argue that the
Constitution itself precludes respondents’ claims, and in
ruling on that motion, the state courts likewise did not
address any such constitutional issue. See 23-952 Pet.
App. 3a-5a, 11a, 15a-18a (summarizing the issues raised
and addressed below).
Petitioners now contend, however, that “[i]t is * * *
the Constitution * * * that is doing the relevant work.”
23-947 Cert. Reply Br. 7; see 23-947 Pet. 24, 27-28; 23952 Pet. 16-23. To be sure, petitioners may ultimately
prevail on their contention that respondents’ claims are
barred by the Constitution—specifically, the Interstate
and Foreign Commerce Clauses, the Due Process Clause,
and federal constitutional structure—to the extent the
claims rely on conduct occurring outside Hawaii. See,
e.g., BMW of N. Am., Inc. v. Gore, 517 U.S. 559, 572, 573
n.20 (1996) (explaining that “principles of state sover-
13
eignty and comity” mean “that a State may not impose
economic sanctions on violators of its laws with the intent of changing the tortfeasors’ lawful conduct in other
States,” while reserving judgment on “whether one State
may properly attempt to change a tortfeasor’s unlawful
conduct in another State”). But no such question was addressed or properly presented below. And regardless of
whether the “requirement that a federal claim be addressed or properly presented in state court is jurisdictional or prudential,” “the circumstances here justify no
exception.” Adams, 520 U.S. at 90. Thus, even if the decision below fell within the fourth Cox category, the extent to which the Constitution itself may preclude respondents’ claims would not be properly before this
Court.
3. In any event, even if the possibility of piecemeal
review were not a jurisdictional problem, see pp. 8-9,
supra, it at least counsels against review at this juncture. As discussed, the only federal issues raised in petitioners’ Rule 12(b)(6) motion—and addressed below—
were petitioners’ federal-common-law and Clean Air Act
arguments. See pp. 3-6, supra. But in their answers to
respondents’ amended complaint, petitioners have raised
additional federal issues, including whether and to what
extent the Constitution itself precludes respondents’
claims. See, e.g., Shell Answer, Cir. Ct. Doc. 742, at 32,
34 (Sept. 12, 2022) (asserting defenses based on the
Commerce Clause, the Due Process Clause, the foreignaffairs doctrine, and separation of powers); Sunoco Answer, Cir. Ct. Doc. 750, at 27, 29 (Sept. 12, 2022) (same).
The state courts may well address those additional
federal issues in further proceedings. In particular, the
state courts could conclude that the Constitution bars
the state-law claims to the extent they rely on conduct
14
occurring outside Hawaii, even though the Hawaii Supreme Court concluded that the Clean Air Act does not
preempt those claims. Postponing review until final
judgment would thus allow the Court to consider all of
the federal issues presented in this case at one time.
Jefferson v. City of Tarrant, 522 U.S. 75, 83 (1997).
B. The Merits Of The Decision Below Do Not Warrant This
Court’s Review At This Time
1. The Hawaii Supreme Court correctly rejected petitioners’ reliance on federal common law for two independent reasons. 23-952 Pet. App. 38a-56a.
a. First, as the United States has previously explained, the federal common law that petitioners invoke
—the federal common law of “transboundary [air] pollution,” 23-952 Pet. App. 39a; see Mem. 11—has been
displaced by Congress in the Clean Air Act, at least with
respect to greenhouse-gas emissions. See U.S. Cert.
Amicus Br. at 11-15, Suncor Energy (U.S.A.) Inc. v.
Board of County Comm’rs of Boulder County, 143 S. Ct.
1795 (2023) (No. 21-1550). This Court so held in American Electric Power Co. v. Connecticut, 564 U.S. 410,
424 (2011) (AEP).
Despite acknowledging that displacement, petitioners contend that respondents’ claims are still governed
by federal common law. 23-952 Pet. App. 47a. But “federal common law is ‘subject to the paramount authority
of Congress.’ ” Northwest Airlines, Inc. v. Transport
Workers, 451 U.S. 77, 95 (1981) (citation omitted). “Thus,
once Congress addresses a subject, even a subject previously governed by federal common law, * * * the task
of the federal courts is to interpret and apply statutory
law, not to create common law.” Id. at 95 n.34.
In AEP, for example, the Court did not remand for
consideration of the viability of the plaintiffs’ state-law
15
claims in light of the federal common law that the Clean
Air Act had displaced. 564 U.S. at 429. To the contrary,
the Court described any remaining disputes over the
scope of that “displaced” body of federal common law as
“academic.” Id. at 423. The Court then treated the viability of the plaintiffs’ state-law claims as a matter of
Clean Air Act preemption, instructing the lower courts
to consider “the availability vel non of a state lawsuit”
in light of “the preemptive effect of the federal Act.” Id.
at 429.
This Court took a similar approach in International
Paper Co. v. Ouellette, 479 U.S. 481 (1987). After concluding that the Clean Water Act, 33 U.S.C. 1251 et seq.,
had displaced the federal common law governing transboundary water pollution, Ouellette, 479 U.S. at 489, the
Court did not suggest that the prior federal-commonlaw regime had any bearing on the extent to which
state-law claims could go forward. Instead, the Court
treated the viability of state-law claims as solely a matter of Clean Water Act preemption, to be addressed in
light of statutory provisions that “specifically preserve[d] [certain] state actions” and “allow[ed] source
States to impose stricter standards.” Id. at 497, 499; see
id. at 488-500. Petitioners’ assertion that federal common law governs respondents’ claims even after Congress displaced that body of law cannot be reconciled
with AEP or Ouellette.
This Court addressed a similar argument in Puerto
Rico Department of Consumer Affairs v. Isla Petroleum Corp., 485 U.S. 495 (1988), where it rejected the
contention that a Puerto Rico law imposing price and
allocation controls on petroleum products was preempted by the Emergency Petroleum Allocation Act
(EPAA), which had since been repealed. The Court ob-
16
served that “repeal of EPAA regulation did not leave
behind a pre-emptive grin without a statutory cat.” Id.
at 504. So too here, the displacement of the federal common law “did not leave behind a pre-emptive grin” without a common-law “cat.” Ibid.
b. Second, even if Congress had not displaced the
federal common law on which petitioners rely, that body
of federal common law would still not govern respondents’ claims. 23-952 Pet. App. 52a-56a. “There is no federal general common law.” AEP, 564 U.S. at 420 (citation omitted). “Instead, only limited areas exist in which
federal judges may appropriately craft the rule of decision.” Rodriguez v. FDIC, 589 U.S. 132, 136 (2020). Petitioners invoke one such area of federal common law
here: the federal common law of transboundary air pollution. That specialized body of federal common law imposed on polluters certain duties not to pollute. See
AEP, 564 U.S. at 421.
But respondents in this case do not allege the violation of such a duty. Rather, they allege the violation of
a different one: “a duty to disclose and not be deceptive
about” the dangers of using fossil-fuel products. 23-952
Pet. App. 86a (emphasis omitted); see id. at 103a-106a.
Indeed, every court to have addressed respondents’
claims has described them as claims “about whether oil
and gas companies misled the public about dangers from
fossil fuels.” Honolulu v. Sunoco LP, 39 F.4th 1101, 1113
(9th Cir. 2022), cert. denied, 143 S. Ct. 1795 (2023); see
23-952 Pet. App. 34a, 86a n.1; Honolulu v. Sunoco LP,
No. 20-cv-163, 2021 WL 531237, at *1 (D. Haw. Feb. 12,
2021).
Because respondents do not allege the violation of a
duty not to pollute, the federal common law that petitioners invoke would not govern respondents’ claims
17
even if it still existed. To establish that federal common
law governs respondents’ claims, this Court would have
to fashion a new body of federal common law—one that
governs “tortious marketing.” 23-952 Pet. App. 55a. But
petitioners have not cited “any case recognizing federal
common law governing tortious marketing suits,” and
they have “waived any argument to expand federal common law to cover [respondents’] claims.” Ibid.
Given that state-law ground of waiver found by the
Hawaii Supreme Court, the decision below would be a
poor vehicle for considering whether federal common
law governs respondents’ claims. Even if this Court
were to look past Congress’s displacement of the federal common law on which petitioners rely, that federal
common law still would not reach tortious marketing.
2. The Hawaii Supreme Court was also correct in
concluding that the Clean Air Act does not categorically
preempt respondents’ claims. 23-952 Pet. App. 56a-69a.
In arguing that the Act preempts respondents’ claims
in their entirety, petitioners do not rely on any express
preemption clause. Instead, petitioners rely on a theory
of obstacle preemption drawn from this Court’s decision
in Ouellette. Mem. 22-24; 23-952 Pet. 29-31.
Ouellette involved a defendant whose discharges into
the waters of one State (the source State) affected the
waters of another (the affected State). 479 U.S. at 483484. The plaintiff sued, alleging that the defendant’s discharges violated the law of the affected State. Id. at 484.
This Court held that the Clean Water Act precluded
“applying the law of an affected State” to impose a duty
not to pollute on “an out-of-state source.” Id. at 494. The
Court explained that “if affected States were allowed to
impose separate discharge standards on a single point
source, the inevitable result would be a serious interfer-
18
ence with the achievement of the ‘full purposes and objectives of Congress.’ ” Id. at 493-494 (citation omitted).
Analogizing this case to Ouellette, petitioners contend that the Clean Air Act likewise precludes applying
Hawaii law to regulate “air pollution originating out-ofstate.” Mem. 23. But unlike in Ouellette, the defendants
here are fuel marketers, not “emitters.” 23-947 Pet. 25.
And most importantly, respondents’ state-law claims
seek to enforce a duty not to deceive—i.e., “a duty to
disclose and not be deceptive about” the dangers of using fossil-fuel products—rather than a duty not to pollute. 23-952 Pet. App. 86a (emphasis omitted); see 23952 Pet. 21 (acknowledging that the “proper inquiry” focuses on the “common-law duty at issue”) (citation omitted). That distinction matters because while the Clean
Air Act “regulates pollution,” it “does not concern itself ”
with the kind of deceptive marketing alleged here. 23952 Pet. App. 64a. Thus, unlike in Ouellette, respondents’ claims would not necessarily stand as an obstacle
to the achievement of Congress’s “purposes and objectives.” 479 U.S. at 493 (citation omitted).
Ouellette therefore does not support petitioners’ theory that the Clean Air Act preempts respondents’ claims
in their entirety. And while there may be arguments
that the Act nevertheless limits the scope of respondents’ claims or the relief that could be granted, the decision below would be an unsuitable vehicle for considering those narrower theories because the precise contours of respondents’ claims have not yet been developed or addressed in the state courts below. 3
In previous lower-court filings in other cases, the United States
took the position that the Clean Air Act preempts certain state-law
claims that the United States characterized as seeking to “regulate
out-of-state pollution sources.” U.S. Amicus Br. in Support of Mot.
3
19
C. Petitioners Have Not Demonstrated That Any Appellate
Court Would Have Reached A Different Outcome Than
The Court Below
Petitioners contend that the decision below conflicts
with the decisions of other appellate courts. 23-947 Pet.
14-21; 23-952 Pet. 9-16, 23-29. But none of those other
decisions involved state-law claims like the ones here—
claims alleging the violation of a duty not to deceive, rather than a duty not to pollute. Petitioners therefore
have not established that any appellate court would have
reached a different outcome in the particular circumstances of this case. And because the Hawaii Supreme
Court is the only appellate court that has addressed the
viability of claims like the ones here, this Court would
benefit from further percolation in the lower courts.
See 23-947 Pet. 31 (citing other cases in which similar
issues could arise).
1. The Second Circuit’s decision in City of New York
v. Chevron Corp., 993 F.3d 81 (2021), involved claims alleging that private energy companies violated various
state-law duties by producing, promoting, and selling
fossil-fuel products that the companies knew were the
source of greenhouse-gas emissions that posed a risk to
the planet’s climate. 993 F.3d at 86-87. Because the
to Dismiss at 2, Mayor & City Council of Baltimore v. B.P. p.l.c.,
No. 24-C-18-004219 (Md. Cir. Ct. Mar. 20, 2020); U.S. Amicus Mem.
of Law in Support of Mot. to Dismiss at 2, Rhode Island v. Chevron
Corp., No. PC-2018-4716 (R.I. Super. Ct. May 5, 2020); see U.S.
Amicus Br. at 7-13, City of New York v. Chevron Corp., 993 F.3d 81
(2d Cir. 2021) (No. 18-2188). The Baltimore and Rhode Island cases
included claims of deception, but the United States did not separately address that aspect of the claims. Having considered that
issue directly in this case, the United States is of the view that the
Act does not categorically preempt deceptive-marketing claims
like the ones here.
20
companies could have “avoid[ed] all liability” only by
“ceas[ing] global production [of fossil-fuel products] altogether,” the Second Circuit viewed the claims as a
“regulat[ion]” of “cross-border emissions.” Id. at 93.
The Second Circuit then held that the claims had to “be
brought under federal common law,” id. at 95, but that
any federal common-law claim would fail because “the
Clean Air Act displaces federal common law claims concerned with domestic greenhouse gas emissions,” ibid.,
and because federal common law would not extend extraterritorially to reach foreign emissions, id. at 101.
Contrary to petitioners’ contention (23-947 Cert. Reply Br. 1), the claims in this case differ from those addressed in City of New York. The claims in City of New
York targeted fossil-fuel products themselves, seeking
to hold the companies responsible for the products’ production, promotion, and sale, even in the absence of any
deception; the claims in this case, in contrast, target only
the products’ deceptive marketing. Compare Appellant
Br. at 9, City of New York, supra (No. 18-2188) (“The
complaint focuses exclusively on [the companies’] production, promotion, and sale of fossil fuels while knowing the harms they would cause.”), with Resp. Opp. to
Mot. to Dismiss for Failure to State a Claim, Cir. Ct. Doc.
375, at 8 (July 19, 2021) (“[Respondents’] claims focus
entirely on [petitioners’] failures to warn and campaigns
of deception.”). Thus, whereas the companies in City of
New York could have avoided further liability only by
“ceas[ing] global production [of fossil-fuel products] altogether,” 993 F.3d at 93, the Hawaii Supreme Court
concluded that petitioners in this case could avoid further liability simply by “issuing warnings and refraining
from deceptive conduct,” 23-952 Pet. App. 69a. Indeed,
respondents themselves acknowledge that, “so long as
21
[petitioners] start warning of their products’ climate
impacts and stop spreading climate disinformation,
they can sell as much fossil fuel as they wish without
fear of incurring further liability.” Id. at 15a.
Given the nature of respondents’ claims, petitioners
err in asserting that the outcome of this case necessarily
would have been different if it had arisen in the Second
Circuit. In City of New York, the Second Circuit concluded that the plaintiff ’s claims “must be brought under federal common law.” 993 F.3d at 95. But the court
reached that conclusion only because it understood those
claims to “regulate cross-border emissions.” Id. at 93.
The court did not consider whether “federal common
law govern[s] tortious marketing suits” like respondents’. 23-952 Pet. App. 55a; cf. Connecticut v. Exxon
Mobil Corp., 83 F.4th 122, 142 (2d Cir. 2023) (holding
that a tortious marketing suit, brought by a State against
private energy companies, could be resolved “ ‘without
reaching’ the federal common law of transboundary pollution”) (emphasis added; citation omitted). The Second
Circuit also concluded that “the Clean Air Act’s displacement of federal common law d[id] not resuscitate
the [plaintiff ’s] state-law claims.” City of New York, 993
F.3d at 98 (capitalization altered). But again, the court
reached that conclusion only because it understood those
claims to regulate “emissions,” id. at 100—not deceptive marketing.
2. Petitioners likewise err in asserting that the decision below conflicts with North Carolina ex rel. Cooper
v. TVA, 615 F.3d 291 (4th Cir. 2010), cert. denied, 564
U.S. 1054 (2011), and Illinois v. Milwaukee, 731 F.2d
403 (7th Cir. 1984), cert. denied, 469 U.S. 1196 (1985).
Those cases involved suits brought against out-of-state
polluters seeking to enforce certain state-law duties not
22
to pollute. See Cooper, 615 F.3d at 296; Milwaukee, 731
F.2d at 404-406. In Cooper, the Fourth Circuit held that
the suit was preempted by the Clean Air Act. 615 F.3d
at 301-306. In Milwaukee, the Seventh Circuit held that
the suit was preempted by the Clean Water Act. 731
F.2d at 414. But neither case involved state-law claims
like the ones here, alleging the violation of a duty not to
deceive.
3. The remaining decisions that petitioners cite are
also inapposite. Each involved state-law claims brought
against in-state polluters alleging the violation of duties
not to pollute, rather than duties not to deceive. See
Merrick v. Diageo Americas Supply, Inc., 805 F.3d 685,
686, 689, 695 (6th Cir. 2015); Bell v. Cheswick Generating Station, 734 F.3d 188, 189-190, 192-193, 197 (3d Cir.
2013), cert. denied, 572 U.S. 1149 (2014); Freeman v.
Grain Processing Corp., 848 N.W.2d 58, 63-64, 82-85
(Iowa 2014), cert. denied, 574 U.S. 1026 (2014); BrownForman Corp. v. Miller, 528 S.W.3d 886, 888-889, 893
(Ky. 2017). And each decision allowed the state-law
claims to go forward, finding no preemption under the
Clean Air Act. See ibid. None of those decisions conflicts with the Hawaii Supreme Court’s finding of no
preemption here.
23
CONCLUSION
The petitions for writs of certiorari should be denied.
Respectfully submitted.
ELIZABETH B. PRELOGAR
Solicitor General
TODD KIM
Assistant Attorney General
EDWIN S. KNEEDLER
Deputy Solicitor General
FREDERICK LIU
Assistant to the Solicitor
General
CHRISTINE W. ENNIS
ROBERT P. STOCKMAN
Attorneys
DECEMBER 2024
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.