Another climate change lawsuit against Big Oil heads back to state court

(Reuters) - A federal appeals court on Monday delivered another blow to efforts by Chevron Corp, Exxon Mobil Corp and other oil companies to force state and local governments to pursue lawsuits claiming they fueled climate change in federal rather than state court.

The Boston-based 1st U.S. Circuit Court of Appeals for the second time in two years remanded a lawsuit the state of Rhode Island filed in 2018 after rejecting the companies' arguments that its claims were governed by or preempted by federal law.

U.S. Circuit Judge O. Rogeriee Thompson called the issues "mindnumbing" and said the court was "leaning hard on our sibling circuits' analyses in comparable climate-change cases," after three other appellate courts remanded similar lawsuits.

State courts are generally considered a more plaintiff-friendly venue.

The 1st Circuit had already ordered the case remanded in 2020, but the U.S. Supreme Court last year directed it to take a second look after the high court gave the companies another shot to argue for removal in a similar case by the city of Baltimore, Maryland.

Rhode Island Attorney General Peter Neronha, a Democrat, in a statement called Monday's ruling "the right decision."

"After decades of climate change deception by the fossil fuel defendants, and now nearly four years of delay tactics in our lawsuit to hold them accountable for it, our residents, workers, businesses and taxpayers are ready for their day in court," he said.

Exxon said it was reviewing the decision and evaluating its next steps. Other companies had no immediate comment.

Rhode Island's lawsuit alleged that various oil companies had created a public nuisance in the state and failed to adequately warn customers, consumers and regulators about the risks posed by their fossil fuel products.

The lawsuit seeks to force the companies to pay for damages associated with climate change, citing the costs taxpayers were incurring to repair roads and bridges and rebuild coastal structures.

Since the U.S. Supreme Court's ruling last year, similar lawsuits have been sent back to state courts by the 4th, 9th and 10th U.S. Circuit Courts of Appeals, including Baltimore's lawsuit.

The case is State of Rhode Island v. Shell Oil Products Co LLC, 1st U.S. Circuit Court of Appeals, No. 19-1818.

For Rhode Island: Victor Sher of Sher Edling

For Chevron: Theodore Boutrous Jr of Gibson, Dunn & Crutcher

(NOTE: This story has been updated with a comment from Rhode Island's attorney general.)

Read more:

Chevron, other energy giants must face California climate change cases in state court

Baltimore gets venue win in climate case against Exxon, BP

U.S. Supreme Court backs energy companies over Baltimore in climate case

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