Supplemental Brief — Shell PLC, fka Royal Dutch Shell PLC, et al., Petitioners v. City and County of Honolulu, Hawaii, et al.
Supreme Court briefDec 23, 2024
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No. 23-952
IN THE
Supreme Court of the United States
__________
SHELL PLC (F/K/A ROYAL DUTCH SHELL PLC),
SHELL USA, INC. (F/K/A SHELL OIL COMPANY),
AND SHELL OIL PRODUCTS COMPANY LLC,
Petitioners,
v.
CITY AND COUNTY OF HONOLULU, ET AL.,
Respondents.
__________
On Petition for a Writ of Certiorari
to the Supreme Court of Hawai‘i
__________
SUPPLEMENTAL BRIEF FOR PETITIONERS
__________
JOACHIM P. COX
RANDALL C. WHATTOFF
COX FRICKE LLP
800 Bethel Street
Suite 600
Honolulu, Hawai‘i 96813
(808) 585-9440
DAVID C. FREDERICK
Counsel of Record
DANIEL S. SEVERSON
DENNIS D. HOWE
D. CHANSLOR GALLENSTEIN
KELLOGG, HANSEN, TODD,
FIGEL & FREDERICK, P.L.L.C.
1615 M Street, N.W., Suite 400
Washington, D.C. 20036
(202) 326-7900
(dfrederick@kellogghansen.com)
Counsel for Petitioners
December 23, 2024
RULE 29.6 STATEMENT
Petitioners’ Statement pursuant to Rule 29.6 was set
forth at page iii of the petition for a writ of certiorari,
and there are no amendments to that Statement.
ii
TABLE OF CONTENTS
Page
RULE 29.6 STATEMENT ........................................... i
TABLE OF AUTHORITIES ...................................... iii
GLOSSARY ............................................................... vii
ARGUMENT ............................................................... 3
I. THE UNITED STATES FAILS TO
JUSTIFY REVERSING ITS POSITION
FROM CITY OF NEW YORK AND
OTHER CLIMATE CASES.............................. 3
A. The Government Argued The Clean
Air Act Preempted New York’s Identical Claims ................................................. 3
B. The Government Previously Recognized Artful Pleading Cannot Elude
Preemption Of Transboundary Emissions Claims ................................................ 4
C. The Government Relies On An
Untenable Distinction Between A
“Duty Not To Pollute” And A Duty
Not To Cause Pollution By “Deceptive
Marketing” .................................................. 6
D. The Government Erroneously Suggests Honolulu Could Avoid Preemption By Proceeding On An In-StateEmissions Case It Never Pleaded .............. 8
E. The Government Mischaracterizes The
Federal Common-Law Arguments ............. 9
II. THE UNITED STATES’ SHIFTING
POSITIONS CONFIRM IMMEDIATE
REVIEW IS NEEDED ................................... 11
CONCLUSION.......................................................... 12
iii
TABLE OF AUTHORITIES
Page
CASES
Aloha Petroleum, Ltd. v. National Union Fire
Ins. Co. of Pittsburgh, 557 P.3d 837 (Haw.
2024)....................................................................... 7
American Elec. Power Co. v. Connecticut, 564 U.S.
410 (2011) ...................................................6, 10, 11
City of New York v. BP P.L.C., 325 F. Supp. 3d
466 (S.D.N.Y. 2018), aff ’d sub nom. City of
New York v. Chevron Corp., 993 F.3d 81 (2d
Cir. 2021) ........................................................... 3, 4
City of New York v. Chevron Corp., 993 F.3d 81
(2d Cir. 2021) .................................................1, 2, 3,
4, 7, 9, 11
Delaware ex rel. Jennings v. BP Am. Inc., 2024
WL 98888 (Del. Super. Ct. Jan. 9, 2024).................. 9
International Paper Co. v. Ouellette, 479 U.S.
481 (1987) .............................................................. 5
Kurns v. Railroad Friction Prods. Corp., 565 U.S.
625 (2012) .............................................................. 7
Mayor & City Council of Baltimore v. BP P.L.C.,
2024 WL 3678699 (Md. Cir. Ct. July 10,
2024)................................................................... 5, 6
North Carolina ex rel. Cooper v. TVA, 615 F.3d
291 (4th Cir. 2010) ................................................. 5
STATUTES
Clean Air Act, 42 U.S.C. § 7401 et seq. ....1, 2, 3, 4, 11
28 U.S.C. § 1257 .......................................................... 8
iv
OTHER MATERIALS
Am. Compl., City of New York v. BP P.L.C.,
et al., No. 18-CV-00182, Dkt. 80, 2018 WL
8064051 (S.D.N.Y. Mar. 16, 2018) ........................ 3
Amicus Curiae Br. of United States of America
in Support of Dismissal, City of Oakland,
et al. v. BP P.L.C., et al., Nos. 3:17-cv-06011WHA & 3:17-cv-06012-WHA, Dkt. 245, 2018
WL 2192113 (N.D. Cal. May 10, 2018) ................. 4
Audio of Oral Arg., City & Cnty. of Honolulu,
et al. v. Sunoco LP, et al., No. SCAP-220000429 (Haw. Aug. 17, 2023), https://
shorturl.at/ILMmI ................................................. 8
Biden for President Campaign, The Biden
Plan To Secure Environmental Justice and
Equitable Economic Opportunity (Aug. 6,
2020), https://shorturl.at/SYcHJ ........................... 2
Br. for Appellant, City of New York v. Chevron
Corp., et al., No. 18-2188, Dkt. 89, 2018 WL
5905772 (2d Cir. Nov. 8, 2018) .............................. 4
Br. for the Tennessee Valley Auth. as Resp.
Supp. Pet’rs, American Elec. Power Co.,
et al. v. Connecticut, et al., No. 10-174, 2011
WL 317143 (U.S. Jan. 31, 2011) ........................... 11
Br. for the United States and the Federal
Energy Regulatory Comm’n as Amici Curiae,
Mississippi Power & Light Co. v. Mississippi
ex rel. Pittman, et al., No. 86-1970, 1987 WL
880466 (U.S. Dec. 3, 1987) .................................... 8
Br. for the United States as Amicus Curiae
Supporting Appellant, Goodyear Atomic
Corp. v. Miller, No. 86-1172, 1987 WL 881253
(U.S. Sept. 3, 1987) ................................................ 8
v
Br. for the United States as Amicus Curiae
Supporting Resp., Dan’s City Used Cars,
Inc. v. Pelkey, No. 12-52, 2013 WL 769197
(U.S. Feb. 28, 2013) ............................................... 8
Br. of the United States as Amicus Curiae in
Support of Appellees, City of New York v. BP
P.L.C., et al., No. 18-2188, Dkt. 210, 2019
WL 1112108 (2d Cir. Mar. 7, 2019) ......1, 3, 4, 5, 6,
7, 8, 9, 10, 11
Br. of the United States as Amicus Curiae in
Support of Defs.’ Mot. To Dismiss, Mayor
& City Council of Baltimore v. B.P. p.l.c.,
et al., No. 24-C-18-004219 (Md. Cir. Ct. Mar.
20, 2020) ................................................2, 5, 6, 7, 10
City of Oakland, et al. v. BP p.l.c., et al.,
No. 18-16663 (9th Cir.):
Br. of the United States as Amicus Curiae
in Support of Appellees and Affirmance,
Dkt. 97, 2019 WL 2250196 (May 17, 2019) ........ 10
Br. of the United States as Amicus Curiae in
Support of Pet. for Reh’g, Dkt. 198 (Aug. 3,
2020)..............................................................8, 9, 10
Defs.-Appellants’ Jt. Opening Br., City & Cnty.
of Honolulu, et al. v. Sunoco LP, et al.,
No. CAAP-22-0000429 (Haw. Ct. App. Nov.
9, 2022) ................................................................. 10
Jt. Reply Mem. in Support of Defs.’ Mot. To
Dismiss for Failure To State a Claim, City
& Cnty. of Honolulu, et al. v. Sunoco LP,
et al., No. 1CCV-20-0000380 (JPC), 2021 WL
12299820 (Haw. Cir. Ct. Aug. 18, 2021) ............. 10
vi
Mem. of Law by Amicus Curiae the United
States in Support of Defs.’ Mot. To Dismiss,
Rhode Island v. Chevron Corp., et al., No.
PC-2018-4716 (R.I. Super. Ct. May 5, 2020) .... 2, 6
Oral Arg. Tr.:
American Elec. Power Co., et al. v. Connecticut,
et al., No. 10-174, 2011 WL 1480855 (U.S. Apr.
19, 2011) ........................................................................ 2
BP P.L.C., et al. v. Mayor & City Council of
Baltimore, No. 19-1189, 2021 WL 197342
(U.S. Jan. 19, 2021) ............................................. 11
Pl.’s Mot. for Entry of Partial Judgment
Pursuant to Rule 54(b), Delaware ex rel.
Jennings v. BP Am. Inc., et al., No. N20C09-097 EMD CCLD (Del. Super. Ct. Oct. 21,
2024)............................................................................... 9
vii
GLOSSARY
AEP
American Elec. Power Co. v.
Connecticut, 564 U.S. 410 (2011)
AEP Tr.
Oral Arg. Tr., American Elec.
Power Co., et al. v. Connecticut,
et al., No. 10-174, 2011 WL
1480855 (U.S. Apr. 19, 2011)
App.
Appendix to Petition for a Writ
of Certiorari, Shell plc, et al. v.
City & Cnty. of Honolulu, et al.,
No. 23-952 (U.S. Feb. 28, 2024)
Baltimore Tr.
Oral Arg. Tr., BP P.L.C., et al.
v. Mayor & City Council of
Baltimore, No. 19-1189, 2021
WL 197342 (U.S. Jan. 19, 2021)
Biden Plan
Biden for President Campaign,
The Biden Plan To Secure
Environmental Justice and
Equitable Economic Opportunity
(Aug. 6, 2020), https://shorturl.
at/SYcHJ
Delaware Rule 54(b)
Mot.
Pl.’s Mot. for Entry of Partial
Judgment Pursuant to Rule
54(b), Delaware ex rel. Jennings
v. BP Am. Inc., et al., No. N20C09-097 EMD CCLD (Del. Super.
Ct. Oct. 21, 2024)
GHG
Greenhouse Gas
Honolulu Appellants’ Defs.-Appellants’ Jt. Opening
Br.
Br., City & Cnty. of Honolulu,
et al. v. Sunoco LP, et al.,
No. CAAP-22-0000429 (Haw. Ct.
App. Nov. 9, 2022)
viii
Honolulu MTD Reply Jt. Reply Mem. in Support of
Defs.’ Mot. To Dismiss for
Failure To State a Claim, City
& Cnty. of Honolulu, et al.
v. Sunoco LP, et al., No. 1CCV20-0000380 (JPC), 2021 WL
12299820 (Haw. Cir. Ct. Aug.
18, 2021)
Honolulu Tr.
Audio of Oral Arg., City & Cnty.
of Honolulu, et al. v. Sunoco
LP, et al., No. SCAP-22-0000429
(Haw. Aug. 17, 2023), https://
shorturl.at/ILMmI
New York Am. Compl. Am. Compl., City of New York
v. BP P.L.C., et al., No. 18-CV00182, Dkt. 80, 2018 WL 8064051
(S.D.N.Y. Mar. 16, 2018)
New York Appellant’s Br. for Appellant, City of New
Br.
York v. Chevron Corp., et al.,
No. 18-2188, Dkt. 89, 2018 WL
5905772 (2d Cir. Nov. 8, 2018)
Pet.
Pet. for a Writ of Certiorari,
Shell plc, et al. v. City & Cnty.
of Honolulu, et al., No. 23-952
(U.S. Feb. 28, 2024)
Reply
Reply Brief for Pet’rs, Shell
plc, et al. v. City & Cnty. of
Honolulu, et al., No. 23-952
(U.S. May 21, 2024)
TVA AEP Br.
Br. for the Tennessee Valley
Auth. as Resp. Supporting
Pet’rs, American Elec. Power
Co., et al. v. Connecticut, et al.,
No. 10-174, 2011 WL 317143
(U.S. Jan. 31, 2011)
ix
U.S. Baltimore Br.
Br. of the United States as
Amicus Curiae in Support of
Defs.’ Mot. To Dismiss, Mayor
& City Council of Baltimore v.
B.P. p.l.c., et al., No. 24-C-18004219 (Md. Cir. Ct. Mar. 20,
2020)
U.S. Br.
Br. for the United States as
Amicus Curiae, Sunoco LP, et
al. v. City & Cnty. of Honolulu,
et al., Nos. 23-947 & 23-952
(U.S. Dec. 10, 2024)
U.S. Dan’s City Br.
Br. for the United States
as Amicus Curiae Supporting
Resp., Dan’s City Used Cars,
Inc. v. Pelkey, No. 12-52, 2013
WL 769197 (U.S. Feb. 28, 2013)
U.S. Goodyear
Atomic Br.
Br. for the United States as
Amicus Curiae Supporting
Appellant, Goodyear Atomic
Corp. v. Miller, No. 86-1172,
1987 WL 881253 (U.S. Sept. 3,
1987)
U.S. Mississippi
Power Br.
Br. for the United States and
the Federal Energy Regulatory
Comm’n as Amici Curiae,
Mississippi Power & Light Co.
v. Mississippi ex rel. Pittman,
et al., No. 86-1970, 1987 WL
880466 (U.S. Dec. 3, 1987)
x
U.S. New York Br.
Br. of the United States as
Amicus Curiae in Support of
Appellees, City of New York v.
BP P.L.C., et al., No. 18-2188,
Dkt. 210, 2019 WL 1112108
(2d Cir. Mar. 7, 2019)
U.S. Oakland Br.
(N.D. Cal.)
Amicus Curiae Br. of United
States of America in Support
of Dismissal, City of Oakland,
et al. v. BP P.L.C., et al., Nos.
3:17-cv-06011-WHA & 3:17-cv06012-WHA, Dkt. 245, 2018 WL
2192113 (N.D. Cal. May 10,
2018)
U.S. Oakland Br.
(9th Cir.)
Br. of the United States as
Amicus Curiae in Support of
Appellees and Affirmance, City
of Oakland, et al. v. BP p.l.c.,
et al., No. 18-16663, Dkt. 97,
2019 WL 2250196 (9th Cir.
May 17, 2019)
U.S. Oakland Br.
(Reh’g)
Br. of the United States as
Amicus Curiae in Support of
Pet. for Reh’g, City of Oakland,
et al. v. BP p.l.c., et al., No. 1816663, Dkt. 198 (9th Cir. Aug.
3, 2020)
U.S. Rhode Island Br. Mem. of Law by Amicus Curiae
the United States in Support of
Defs.’ Mot. To Dismiss, Rhode
Island v. Chevron Corp., et al.,
No. PC-2018-4716 (R.I. Super.
Ct. May 5, 2020)
The Government reverses its position that the Clean
Air Act preempts claims in these climate cases seeking
damages for the alleged effects of transboundary emissions from artfully pleaded causes. That reversal
deepens an acknowledged conflict only this Court can
resolve. The escalating spate of state-court lawsuits
seeking damages for global emissions from an industry vital to the Nation requires urgent review.
The Hawai‘i Supreme Court green-lit claims seeking
damages for “effects of climate change” allegedly
caused by “the promotion and sale of fossil-fuel[s].”
App.39a-40a. The Second Circuit did the opposite: it
rejected identical claims seeking damages for “effects
of global warming” allegedly caused by the “promotion[ ] and sale of fossil fuels.” City of New York v.
Chevron Corp., 993 F.3d 81, 86, 88 (2d Cir. 2021). In
both cases, plaintiffs admitted global greenhouse gas
emissions are “a link in the causal chain.” Id. at 91;
App.67a. The Second Circuit recognized “such emissions as the singular source of the [alleged] harm,”
despite the City’s “artful pleading,” 993 F.3d at 91, 97,
while the Hawai‘i Supreme Court concluded those
emissions “only serve to tell a broader story,” App.40a.
The Government contended New York could not
“disavow[ ] an intent to regulate emissions” because
its “allegations of injury from the effects of climate
change all turn[ed] on greenhouse-gas emissions from
burning fossil fuels”; focusing on earlier moments in
the causal chain was “immaterial to the Court’s analysis.” U.S. New York Br. 11, 26. The Second Circuit
adopted that view: the City could not “disavow[ ] any
intent to address emissions [while] identifying such
emissions as the singular source of the City’s harm.”
993 F.3d at 91. Indeed, the Government acknowledges (at 18-19 n.3) its consistent view has been that
2
the Clean Air Act preempts identical cases alleging
“deception” leading to transboundary emissions. See
U.S. Baltimore Br. 15 (plaintiff cannot “paper over the
chain of causation”); U.S. Rhode Island Br. 12 (“This
is mere smoke and mirrors.”).
The Government offers no explanation for abruptly
changing position in a case presenting the same
claims and allegations in the same posture. The brief
says (at 19 n.3) “the United States did not separately
address that [deception] aspect of the claims.” But
deceptive marketing was central in City of New York.
The Government argued that focusing on the promotion of fossil fuels was “immaterial”: federal law
preempts claims for damages allegedly caused by
transboundary emissions. The Government’s flip-flop,
however, is consistent with the Biden Plan’s policy
pledge to “strategically support ongoing plaintiffdriven climate litigation against polluters.” It’s not
based on law.
The Government agrees it previously argued the
Clean Air Act preempts all state efforts to regulate
out-of-state emissions and that the court passed on
that question below. The Government presents no
serious challenge to the cert-worthiness of QP2. And
on QP1, the Government has explained “that the same
arguments that prohibit . . . recognizing a Federal
common law cause of action” for claims premised on
global greenhouse gas emissions “very well may be
preemption questions as well that could be addressed
down the road with respect to State common law
actions.” AEP Tr. 28:11-16. Given the Government’s
shifting positions and the ballooning roster of climate
cases, this Court should address those questions now.
3
ARGUMENT
I. THE UNITED STATES FAILS TO JUSTIFY
REVERSING ITS POSITION FROM CITY OF
NEW YORK AND OTHER CLIMATE CASES
A. The Government Argued The Clean Air Act
Preempted New York’s Identical Claims
The Second Circuit held New York’s claims “are
clearly barred by the Clean Air Act.” 993 F.3d at 96.
The Hawai‘i Supreme Court concluded the Second Circuit’s reasoning was “flawed” and held the Clean Air
Act “does not preempt [Honolulu’s] claims.” App.5a,
42a. The Government argued “[t]he Clean Air Act
preempts the City’s state-law claims.” U.S. New York
Br. 7. But it now contends (at 17) the Hawai‘i court
was “correct.”
The New York and Honolulu complaints are
substantively identical. The Government asserts (at
20) the claims “differ” but cites allegations showing
they’re the same: the “promotion[ ] and sale of fossil
fuels [despite] knowing the harms they would cause”
in City of New York is equivalent to “failures to warn”
here, and New York’s complaint alleged “campaigns of
deception” like Honolulu. See New York Am. Compl.
¶¶ 6-7 (“The purpose of this campaign of deception
and denial was to increase sales”). New York alleged
“Defendants have known for decades that their fossil
fuel products pose risks of severe impacts on the global
climate through the warnings of their own scientists,”
yet still “extensively promoted fossil fuels for pervasive use, while denying or downplaying these threats.”
City of New York v. BP P.L.C., 325 F. Supp. 3d 466,
468-69 (S.D.N.Y. 2018). Honolulu’s complaint is
the mirror image: “Defendants . . . have known for
decades” “that unrestricted promotion and use of
their fossil fuel products create greenhouse gas
4
pollution that warms the planet,” but “nevertheless”
“promoted . . . a massive increase in” fossil-fuel use,
while “conceal[ing] and deny[ing] their own knowledge of those threats.” App.100a-101a (¶¶ 1-2).
The Government’s assertion (at 19 n.3) it previously
did not “directly” consider “deceptive-marketing claims”
cannot be squared with its amicus brief defending
the district court’s ruling that New York’s “complaint
contains extensive allegations regarding Defendants’
past attempts to deny or downplay the effects of fossil
fuel use on climate change.” 325 F. Supp. 3d at 469;
see U.S. Oakland Br. (N.D. Cal.) 2, 4 (noting plaintiffs’
“claims . . . assertedly challenged Defendants’ deception” and describing City of New York as “similar”).
New York maintained the “primary fault” it alleged
was “marketing activities” that “downplayed the risks
of climate change,” New York Appellant’s Br. 5, 16;
and the Second Circuit rejected New York’s “artful
pleading,” 993 F.3d at 97.
The Government argued “the complaint on its face”
“alleged harms from out-of-state greenhouse gas
emissions” and therefore urged the Second Circuit
to “conclude that those claims are preempted by the
Clean Air Act.” U.S. New York Br. 5. Now, in conclusory fashion, the Government asserts (at 17) the Clean
Air Act “does not categorically preempt” Honolulu’s
claims, but fails to justify its about-face.
B. The Government Previously Recognized
Artful Pleading Cannot Elude Preemption
Of Transboundary Emissions Claims
Focusing on the promotion or marketing of fossilfuel products, an earlier step in the causal chain leading to emissions, is artful pleading that cannot avoid
preemption. The Government explained New York
could not “disavow[ ] an intent to regulate emissions”
5
because its “allegations of injury from the effects of
climate change all turn on greenhouse-gas emissions
from burning fossil fuels, not on their production
and sale.” U.S. New York Br. 11. “[T]hat the City’s
claims target production and sale of fossil fuels, rather
than directly targeting the resulting emissions, is
immaterial to the Court’s analysis.” Id. at 26. Thus,
New York could not “distinguish [International Paper
Co. v. Ouellette, 479 U.S. 481 (1987),] by framing its
claims as production and sale rather than emissions.”
Id. at 13.
The Government likewise argued Baltimore’s claims
would “ ‘overturn the judgment of Congress’ ” in “the
Clean Air Act” and “violate” “ ‘preemption principles.’ ”
U.S. Baltimore Br. 1 (quoting North Carolina ex rel.
Cooper v. TVA, 615 F.3d 291, 303, 306 (4th Cir. 2010)).
“[Baltimore’s] Complaint does not limit liability to
emissions sourced from or acts within the State of
Maryland” but depends on conduct “across the entire
world.” Id. “Baltimore strives to paper over the chain
of causation,” but its “allegations of injury from
Defendants’ conduct come from the effects of climate
change,” which “traces through the emission of greenhouse gases.” Id. at 15.
The Baltimore court followed the Government’s
recommendation and dismissed the case, noting a
common defect across cases: “Again, the bottom line
is that Baltimore, like NYC (and if truth be told
Honolulu), intends to hold the Defendants liable
under Maryland law, for the effects of emissions made
around the globe over the past several hundred
years.” Mayor & City Council of Baltimore v. BP
P.L.C., 2024 WL 3678699, at *7 (Md. Cir. Ct. July 10,
2024) (cleaned up). “The explanation by Baltimore
that it only seeks to address and hold Defendants
accountable for a deceptive misinformation campaign
6
is simply a way to get in the back door what they
cannot get in the front door.” Id. at *5.
C. The Government Relies On An Untenable
Distinction Between A “Duty Not To
Pollute” And A Duty Not To Cause Pollution
By “Deceptive Marketing”
The Government presents (at 18) a false dichotomy:
Honolulu’s “state-law claims seek to enforce a duty not
to deceive . . . rather than a duty not to pollute.” In
reality, New York, Honolulu, and others advancing
these cases all seek to enforce the same duty: a duty
not to cause pollution by means of deception. In other
words, the “duty not to deceive” is necessarily a duty
to warn consumers not to use products that increase
emissions.
The Government previously argued that “[t]o grant
relief on these claims would intrude impermissibly on
the role of the representative branches to determine
what level of greenhouse gas regulation is reasonable.” U.S. New York Br. 29; see U.S. Baltimore Br. 17;
U.S. Rhode Island Br. 7. That remains true regardless of how plaintiffs articulate the duty in question.
The federal government makes determinations about
the “appropriate amount” of emissions, and that “complex balancing” is disrupted when non-source States
impose liability for those same emissions. American
Elec. Power Co. v. Connecticut, 564 U.S. 410, 427
(2011). The Government cannot dispute that imposing liability for allegedly excessive emissions, whether
for violating a duty to warn or a public nuisance,
second-guesses policymaking by the elected branches.
The Government also ignores the causation and
harm elements of Honolulu’s claims, which indisputably hinge on increased emissions. Pet. 21-23. The
Government has recognized preemption from those
7
elements independent of the applicable duty. See
U.S. New York Br. 11 (New York’s “allegations of
injury from the effects of climate change all turn on
greenhouse-gas emissions from burning fossil fuels,
not on their production and sale”); U.S. Baltimore Br.
15-17 (same). Because “regulation can be effectively
exerted through an award of damages,” Kurns v. Railroad Friction Prods. Corp., 565 U.S. 625, 637 (2012)
(cleaned up), a state-law claim attacking transboundary emissions through the causation or harm element
is no less regulatory than a claim imposing a direct
“duty to reduce emissions.”
Moreover, since petitioners sought certiorari, the
Hawai‘i Supreme Court has acknowledged in adjudicating insurance for this very lawsuit that Honolulu’s
claims concern “reducing GHG emissions”: the court
explained Honolulu sued petitioners because their
“actions, the complaint alleged, increased carbon emissions, which have caused and will cause significant”
“climate change-related harms.” Aloha Petroleum,
Ltd. v. National Union Fire Ins. Co. of Pittsburgh,
557 P.3d 837, 840-41, 856 (Haw. 2024). That frank
assessment exposes the state court’s inconsistent conclusion here that “[t]his suit does not seek to regulate
emissions and does not seek damages for interstate
emissions.” App.3a.
“Stripped to its essence,” Honolulu’s complaint, like
New York’s, “seek[s] to recover damages for the harms
caused by global greenhouse gas emissions.” 993 F.3d
at 91. Thus, regardless of whether the Government
correctly characterized the relevant “duty,” Honolulu’s
“claims, if successful, would operate as a de facto
regulation on greenhouse gas emissions.” Id. at 96.
8
D. The Government Erroneously Suggests
Honolulu Could Avoid Preemption By
Proceeding On An In-State-Emissions Case
It Never Pleaded
As the Government previously recognized in a
similar context, the preemption ruling below is final
under 28 U.S.C. § 1257 because “the federal issue has
been finally decided by the [state court], . . . reversal
by this Court would preclude further proceedings,
and a serious erosion of federal policies is alleged.”
U.S. Goodyear Br. 11 n.9. Indeed, the Government
repeatedly has argued the Court has jurisdiction over
interlocutory appeals from state-court preemption
decisions. See also U.S. Dan’s City Br. 9 n.2; U.S.
Mississippi Power Br. 17-18. And it recognized
“[a]pplication of state nuisance law” in these cases
“would substantially interfere with the ongoing foreign
policy of the United States.” U.S. New York Br. 15-16;
see U.S. Oakland Br. (Reh’g) 10 (“[T]he federal interests in the subject matter are acute.”).
The Government imagines (at 9) Honolulu could
proceed on remand with an alternative in-stateemissions-only claim it never pleaded. But because
Honolulu pleaded a case that necessarily depends
on global emissions, reversal would end the case. See
Reply 10. Honolulu acknowledged before the Hawai‘i
Supreme Court that “the Complaint’s theory . . . envision[s] that there would be liability for representations made . . . around the world,” not “just . . . here
in Hawaii.” Honolulu Tr. 31:33-58. Common sense
dictates that no case pleading harms from global
climate change can proceed solely from one State’s
in-state emissions.
The Government itself recognized in another identical case that “[t]he harm alleged is the attenuated
9
result of emissions occurring and accumulating worldwide. . . . There is no way to apply Ouellette’s ‘source
state’ concept to this house of cards.” U.S. Oakland
Br. (Reh’g) 9-10. And the Government argued New
York’s “complaint on its face” “challenge[s] conduct . . .
almost entirely outside the State of New York,” “so the
City’s claims must likewise be dismissed.” U.S. New
York Br. 5; see id. at 23 (“The City’s claim for damages
depends on . . . emissions . . . worldwide.”).
Finally, Honolulu’s counsel concluded in an identical case that an order holding “that the Clean Air Act
. . . preempts [Delaware]’s claims ‘for injuries resulting from out-of-state or global greenhouse gas emissions’ ” “eliminates” the claims; “it is clear from
the face [of ] the Complaint that [plaintiff ] did not
plead claims for harms caused exclusively by in-state
emissions.” Delaware Rule 54(b) Mot. 2, 11 (quoting
Delaware ex rel. Jennings v. BP Am. Inc., 2024 WL
98888, at *9 (Del. Super. Ct. Jan. 9, 2024)).
E. The Government Mischaracterizes The
Federal Common-Law Arguments
Regarding foreign emissions, the Hawai‘i Supreme
Court held “this lawsuit can proceed” under state law
on the theory that petitioners “inflated global consumption of fossil fuels, which increased greenhouse
gas emissions.” App.2a, 15a. The Second Circuit held
federal law “preempts state law” as to those foreign
emissions. 993 F.3d at 95 & n.7.
The Second Circuit’s resolution of this issue followed
the Government’s unequivocal argument that New
York’s claims were “also preempted by the Foreign
Commerce Clause and by the foreign affairs power of
the Executive Branch because they have more than an
incidental or indirect effect on the actions of foreign
nations and impermissibly intrude into the field of
10
foreign affairs.” U.S. New York Br. 13. The Government noted there and in identical cases that “[e]fforts
to address climate change, including in a variety of
multilateral fora, have for decades been an important
element of U.S. foreign policy and diplomacy.” Id. at
15; see U.S. Baltimore Br. 17-18; U.S. Oakland Br.
(9th Cir.) 15-19.
The Government does not disavow that position
here. Indeed, it suggests quiet agreement that claims
arising from transboundary emissions are preempted.
See U.S. Br. 12 (“petitioners may ultimately prevail”
on their constitutional structure preemption arguments).
The Government instead unpersuasively suggests
(at 13, and for the first time by anyone) that petitioners did not “properly” present this argument below by
referencing federal common law. But the Government
previously maintained “[plaintiffs’] claims are irreconcilable with . . . the structure of the Constitution (as
the Supreme Court recognized by holding that interstate pollution claims are governed by federal common
law).” U.S. Oakland Br. (Reh’g) 12. Briefing before
the Hawai‘i Supreme Court argued “our federal
constitutional structure does not allow varying state
laws” to claim damages for transboundary emissions.
Honolulu Appellants’ Br. 26. Defendants similarly
argued the trial court should follow the Second Circuit’s “simple and straightforward approach,” including that “federal law necessarily governs interstate or
international pollution claims to the exclusion of state
law, because ‘the basic scheme of the Constitution so
demands.’ ” Honolulu MTD Reply 8, 12 (quoting AEP,
564 U.S. at 421). In any event, the federal common
law of transboundary emissions – and its preemptive
effect – is rooted in the Constitution. See Reply 7-8.
11
Notably, Honolulu does not argue petitioners did
not present this issue. And the Government concedes
the Clean Air Act preemption argument is “properly
before this Court.” U.S. Br. 13.
Accordingly, granting and reversing on either
question presented would terminate the litigation.
Reversing on QP1 would preempt Honolulu’s existing
case. Reversing on QP2 would satisfy constitutional
avoidance by preempting Honolulu’s existing case
and limiting any future case to allegations asserting
an in-state-emissions-only claim consistent with the
Clean Air Act. See AEP, 564 U.S. at 429.
II. THE UNITED STATES’ SHIFTING POSITIONS CONFIRM IMMEDIATE REVIEW IS
NEEDED
In City of New York, the Government was “aware of
similar suits by thirteen other municipalities, one
State, and one fisheries association against fossil-fuel
producing companies.” U.S. New York Br. 4. Now
there are more than 30 suits under burgeoning state
laws and States beginning to enact retroactive liability for climate change. The Government previously
cautioned that allowing state-law claims seeking
climate-related damages would invite cases involving
“almost unimaginably broad categories of both potential plaintiffs and potential defendants.” TVA AEP Br.
15-16. And the Government recognized that, although
plaintiffs have “tried to plead around this Court’s
decision in AEP,” the theory of causation and damages
“still depends on alleged injuries . . . caused by emissions from all over the world.” Baltimore Tr. 31:4-12.
Yet these lawsuits are proliferating. On December 4,
2024, the Town of Carrboro, NC sued Duke Energy (an
alleged successor to a defendant in AEP ) using the
same playbook Honolulu’s counsel is using here.
12
The Government’s abrupt shift in position will
only sow further confusion in the lower courts and
encourage similar untenable litigation. The most
the Government’s December 2024 position offers is
delayed resolution of the critical federal preemption
issues. The Government never acknowledges the
costs from the unbounded discovery plaintiffs seek,
the proliferation of copycat lawsuits, and the threat of
even a single ruinous final judgment in these cases to
an industry vital to economic and national security.
With the Government’s inconsistencies, the need for
this Court’s review now is even clearer.
CONCLUSION
The petition for a writ of certiorari should be
granted.
Respectfully submitted,
JOACHIM P. COX
RANDALL C. WHATTOFF
COX FRICKE LLP
800 Bethel Street
Suite 600
Honolulu, Hawai‘i 96813
(808) 585-9440
DAVID C. FREDERICK
Counsel of Record
DANIEL S. SEVERSON
DENNIS D. HOWE
D. CHANSLOR GALLENSTEIN
KELLOGG, HANSEN, TODD,
FIGEL & FREDERICK, P.L.L.C.
1615 M Street, N.W., Suite 400
Washington, D.C. 20036
(202) 326-7900
(dfrederick@kellogghansen.com)
Counsel for Petitioners
December 23, 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.