Hawaii Climate Dispute Moves to Trial After Top Court Rejection

Justices have once again denied an oil major climate challenge, ruling to sit out on Honolulu’s climate dispute and further clearing the path for climate tort cases on the verge of trial.

The US Supreme Court in a Monday short order said it won’t examine a potentially blockbuster Honolulu petition that raises questions of whether state venues are equipped to tackle long-running climate misinformation lawsuits. Justices did not provide explanation, and Justice Samuel Alito didn’t participate in the decision.

“With this latest denial, the fossil fuel industry’s worst nightmare — having to face the overwhelming evidence of their decades of calculated climate deception — is closer than ever to becoming a reality,” Center for Climate Integrity president Richard Wiles said in a statement.

The petition was brought by major oil and gas companies looking to override a decision from Hawaii’s top court and settle whether federal law precludes state claims that deal with international-scope emissions.

“The Supreme Court’s decision not to hear this case at this time is unfortunate because it prolongs litigation when there is general agreement that state law—in this instance, Hawaii’s—cannot govern, let alone impose liability on, the manufacture, sale and promotion of energy around the world,” according to Manufacturers’ Accountability Project special counsel Phil Goldberg.

Road to Trial

Sunoco LP, Aloha Petroleum Ltd., Exxon Mobil Corp., and other companies urged justices to weigh in on whether state courts can take up cases that companies claim raise global issues. The question comes after Hawaii’s Supreme Court greenlit a Honolulu lawsuit in October 2023, jettisoning it toward trial.

“Chevron will continue to defend against meritless state law climate litigation, which clashes with basic constitutional principles, undermines sound energy policy, and is factually meritless,” according to Theodore J. Boutrous Jr. of Gibson, Dunn and Crutcher LLP, counsel for plaintiff Chevron Corp.

In its rebuttal, Honolulu said the petition wasn’t ripe for US Supreme Court perusal and that justices didn’t have authority to examine the Hawaii Supreme Court interlocutory decision when a circuit split doesn’t exist and other appeals are still pending around the country.

Honolulu is also one of a few climate misinformation suits, including a challenge out of Massachusetts, that are steadily proceeding to trial in state courts. Monday’s order means that process won’t face another jurisdictional roadblock.

State-level decisions may still be years away, according to an update from analysts at ClearView Energy Partners LLC, and the road is still uncertain beyond trial.

“We would expect energy companies to appeal any adverse state court rulings in the future – the Supreme Court may still yet be the final word on the merits of the climate liability cases several years from now,” according to ClearView analysts.

Honolulu’s lawsuit echos others all around the country, brought by cities, states, and counties looking to hold energy companies accountable for what they say has been a coordinated attempt to deceive the public about climate change in order to better sell and extract fossil fuels.

“This is a significant day for the people of Honolulu and the rule of law,” Ben Sullivan, executive director of the City and County of Honolulu’s Office of Climate Change, Sustainability and Resiliency, said in a statement.

The case is Sunoco LP v. City and County of Honolulu, U.S., No. 23-947, Order 1/13/25.