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Supreme Court denies oil industry plea to block climate lawsuits filed by California, other blue states
WASHINGTON — The Supreme Court dealt a major setback to the oil industry Monday, refusing to block lawsuits from California and other blue states that seek billions of dollars in damages for the effects of climate change.
Without a comment or dissent, the justices turned down closely watched appeals from Sunoco, Shell and other energy producers.
In Sunoco vs. Honolulu, the oil industry urged the justices to intervene in these state cases and rule that because climate change is a global phenomenon, it is a matter for federal law only, not one suited to state-by-state claims.
“The stakes could not be higher,” they told the court.
But none of the justices said they wanted to hear their claim, at least not now.
The decision clears the way for more than two dozen suits filed by states and municipalities to move forward and try to prove their claim that the major oil producers knew of the potential damage of burning fossil fuels but chose to conceal it.
“Big Oil companies keep fighting a losing battle to avoid standing trial for their climate lies,” said Richard Wiles, president of the Center for Climate Integrity. “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.”
Two years ago, California Gov. Gavin Newsom and Atty. Gen. Rob Bonta filed a lawsuit in San Francisco County Superior Court against five of the largest oil and gas companies — Exxon Mobil, Shell, Chevron, ConocoPhillips and BP — and the American Petroleum Institute for what they described as a “decades-long campaign of deception” that created climate-related harms in California.
“For more than 50 years, Big Oil has been lying to us — covering up the fact that they’ve long known how dangerous the fossil fuels they produce are for our planet,” Newsom said in announcing the suit.
In recent days, California officials have blamed climate change for the devastating weather conditions that contributed to the deadly wildfires that destroyed thousands of homes and other structures, leading to what many experts expect to become the costliest natural disaster in U.S. history.
California’s suit followed the pattern set by similar claims from the cities of Baltimore, New York, Chicago and San Francisco as well as blue states including Massachusetts, Connecticut, Rhode Island, New Jersey and Minnesota.
These suits argue that the oil producers used deceptive marketing to hide the danger of burning fossil fuels. Under state law, companies can be held liable for failing to warn consumers of a known danger.
In June 2024, the court asked the Justice Department to weigh in on the issue. In December, lawyers for the Biden administration urged the court to stand aside for now because the suits are at an early stage.
Justice Samuel A. Alito Jr. said he took no part in the decision to deny the appeals, presumably because he owns stock in companies affected by the dispute.
The climate change lawsuits were patterned after the successful mass lawsuits filed by states and others against the tobacco industry over cigarettes and the pharmaceutical industry over opioids.
Cigarettes and opioids were sold legally, but the suits alleged that industry officials conspired to deceive the public and hide the true dangers of their highly profitable products.
Under state law, plaintiffs can seek damages for broad and open-ended claims such as a failure to warn of a danger, false advertising or creating a public nuisance. All three claims are cited in California’s lawsuit. Federal law, by contrast, is usually limited to damage claims that are authorized by Congress.
Had the Supreme Court agreed to hear the oil industry’s appeal in the Hawaii case, it “would have frozen the cases for a year or more and could have resulted in a death blow for all of them,” said Patrick Parenteau, an environmental law expert at the Vermont Law School.
Los Angeles lawyer Theodore J. Boutrous Jr., who represents Chevron, said the company “will continue to defend against meritless state law climate litigation, which clashes with basic constitutional principles, undermines sound energy policy.”
Meanwhile, Alabama and 20 red states urged the court to throw out these blue-state lawsuits. They said liberal states and their judges should not have the power to set the nation’s policy on the energy industry. The court has not ruled on that claim yet.
The case dismissed Monday began five years ago when the city and county of Honolulu sued Sunoco and 14 other major oil and gas producers, alleging a failure to warn and creating a nuisance.
The Hawaii Supreme Court last year rejected the industry’s motion and refused to dismiss the suit.
“Simply put, the plaintiffs say the issue is whether defendants misled the public about fossil fuels’ dangers and environmental impact. We agree …. This suit does not seek to regulate emissions and does not seek damages for interstate emissions,” the state court said in a unanimous opinion. “Rather, plaintiffs’ complaint clearly seeks to challenge the promotion and sale of fossil-fuel products without warning and abetted by a sophisticated disinformation campaign.”
Manimatana Lee spent the past five years building one of the hottest commodities on the internet: a group of people who reliably watch her videos on TikTok.
She built an audience of nearly 10,000 followers with videos of herself vacuuming her house in Wisconsin while her youngest daughter napped in a carrier on her back. A video of Ms. Lee dancing and doing the dishes — while wearing her sleeping baby — has been watched more than one million times since November.
Now, with the Supreme Court soon to rule in a case that could determine whether TikTok could be banned in the United States over national security concerns, Ms. Lee and other Americans looking for alternatives are downloading Xiaohongshu, a social media app that is popular in China and little known outside the country.
“How funny would it be if they ban TikTok and we all just move over to this Chinese app,” Ms. Lee wrote on Monday on TikTok encouraging her followers to join her.
Xiaohongshu was the most downloaded free app in the U.S. Apple store on Tuesday. Over 300 million people, mostly in China, use the app, where they share short videos as well as still, text-based posts. People flocking to it said, in interviews and on the app, that they wanted to show they do not share Washington’s concerns about TikTok’s ties to China.
TikTok, which is available in more than 150 countries but not China, is owned by the Chinese internet company ByteDance. American creators who post videos on TikTok say the app has been a source of connection, entertainment and information since it became a sensation during the Covid-19 pandemic. Its secret sauce is its proprietary algorithm, technology that recommends a constant stream of short videos targeted to keep people scrolling.
But lawmakers in the United States and other countries have warned that the Chinese government could use TikTok to access data about its users such as location and browsing histories. Officials in Washington say they are also concerned that China could use TikTok to spread false information among the 170 million people who use it in the United States.
Xiaohongshu means “little red book” in Mandarin. Americans new to the app said they were not put off by the reference to a book of Mao Zedong’s sayings. Many call the app “Red Note.”
“I don’t really care if I’m using a Chinese app at all,” said Ms. Lee. “It’s like a place for me to escape reality. And if it’s making me feel good, I’m here for it.”
A group of American creators have sued the government over the law that could see the TikTok app forcibly sold or banned in the United States, and TikTok is paying their legal fees. Ms. Lee and another creator said in interviews that their interest in Xiaohongshu had not been incentivized by either company. TikTok did not respond to a request for comment.
The Americans on Xiaohongshu have rallied under the hashtag “TikTokrefugee,” which had been viewed 100 million times and sparked around 2.5 million discussion threads on the app by Tuesday.
Joining the app has put American users in closer contact with people online in China than they have ever been on TikTok. In China, people use Douyin, a very similar app that ByteDance used to develop the technology that made TikTok a worldwide hit. Douyin is difficult to access outside China.
Many shared tips on how to navigate the app, which is mainly made for and used by people who read and speak Mandarin. Some took screenshots and asked ChatGPT to translate posts, they said.
Xiaohongshu displays the city or province of Chinese users who post and comment, and the country for users outside China. “We are coming to the Chinese spies and begging them to let us stay here,” said one American user. “Approved, welcome to Red Note,” someone in Shanghai replied.
Until late December, 85 percent of Xiaohongshu traffic was from China, according to Similarweb, a data provider and website traffic tracker. The app is especially popular among women in their 20s and 30s, and its long comment threads have become a popular source of information for people to swap questions about everyday concerns, similar to Reddit.
Xiaohongshu did not respond to requests for comment.
On Tuesday, more than 100,000 people had joined a live group chat hosted by a user named “TikTok Refugee Club,” where people from around the world chatted with Chinese users about urban safety. In another group chat, which had been viewed more than 30,000 times, participants discussed censorship and shared tips in the comments on how to avoid being banned from the platform for bringing up politically sensitive topics.
Under another video posted by someone who said they were usually on TikTok, a user in China responded with a meme of a cat with paws outstretched. “I’m your Chinese spy,” the comment said, “give me all your data.”
During a disaster, getting to safety is the top priority. But for many Angelenos displaced by the devastating wildfires raging across Los Angeles County, questions loom about what comes next.
The fires have destroyed thousands of structures and forced roughly 92,000 residents to evacuate. With some homes sitting empty and others reduced to rubble, here are answers you might need.
My home burned down. Do I still have to pay my mortgage?
Homeowners affected by a disaster are often eligible to reduce or suspend their mortgage payments for up to 12 months, according to Fannie Mae, the Federal National Mortgage Assn.
If your home was destroyed in a wildfire, contact your mortgage servicer as soon as possible to discuss your options. You may be qualified for a forbearance plan that will temporarily lower or eliminate your monthly payment and prevent late fees and foreclosure.
You will eventually have to pay what you owe once your forbearance plan expires. Fannie Mae offers resources to avoid paying a lump sum in these circumstances, including disaster payment deferral.
What about my property taxes?
If your home or business was affected by the windstorms or fires, you may be eligible for temporary property tax relief through the Los Angeles County assessor’s office. You should file a misfortune or calamity claim to request reassessment of your property.
You will qualify for tax relief only if the damage to your property exceeds $10,000 and you file your claim within 12 months of the incident. If approved, your reduced tax rate will remain in effect until your property is restored or rebuilt.
My rented home or business was damaged or destroyed. Do I still need to pay rent?
Under California law, your rental agreement will become void if the rental unit is completely destroyed in a disaster. You will no longer be required to pay rent and your landlord must return your security deposit.
If your rental unit is partially destroyed and can’t be lived in, you can choose to end your rental agreement or wait for your landlord to make the necessary repairs. You will not have to pay rent while waiting for repairs, unless you move back into the unit.
If you’re a landlord, you’re responsible for repairs after a disaster and have an obligation to make the unit livable as soon as possible.
I live in an area not directly affected by the fires. Will my rent go up?
California’s anti-price-gouging law is now in effect, which limits rent increases to no more than 10% above pre-emergency levels after an emergency is declared. The limit applies to both existing tenants and new leases.
Price-gouging protections apply anywhere in the state where displacement increases demand for housing, according to the California Apartment Assn.
The cap on rent increases triggered by the wildfires will expire Feb. 6, unless extended through executive orders or local declarations.
If you believe you have evidence of rent gouging, you can submit a complaint with the attorney general’s office at this webpage. The Coalition for Economic Survival, a tenants rights organization, is also holding Saturday workshops to inform people of their rights.
Do I need to pay my utility bills?
Whether you have to continue paying your gas, water and power bills depends on your providers, where you live and the condition of your home.
Southern California Edison, which provides power to the Altadena area, suspended billing for all customers who live in mandatory evacuation zones, said company spokesperson Gabriela Ornelas. The suspensions went into effect Jan. 8. The company is also working with Los Angeles County to get the addresses of homes that have been completely destroyed, which will be permanently removed from the billing list.
Southern California Gas customers who lost their home or business do not need to contact the company to end service, said company spokesperson Erica Berardi. The natural gas provider will forgive the current bill and the most recent bill for customers whose properties have been destroyed.
Customers who have had their natural gas service turned off by SoCalGas for safety reasons will not be billed during the outage.
The Los Angeles Department of Water and Power paused billing notices in areas directly affected by the fires, said spokesperson Michelle Figueroa. It also encouraged customers facing financial hardship to contact the utility about managing their bill.
“We are here to support you and make sure that your utility bill is not a burden at this time,” LADWP told customers.
Where can I get help finding temporary housing?
A rush to snatch up vacant units is on, and some landlords are raising rents far beyond what the anti-price-gouging law allows. This is going make it difficult for many people to find an affordable place to live.
If you can’t find housing with friends or family, there are a few options for free or discounted housing.
Airbnb.org, a nonprofit that works with Airbnb hosts, is providing free, temporary housing for those displaced by the fires, and you can sign up here.
Some hotels are offering discounted rates. The Balaciano Group, a landlord with several apartment complexes in the San Fernando Valley, is also offering discounts to fire victims.
Is government aid available?
You can receive $770 from the Federal Emergency Management Agency under its serious needs assistance program, which can help you pay for things such as water, baby formula and food. To apply, call 1-800-621-3362 or visit https://www.disasterassistance.gov/.
FEMA also offers temporary housing assistance, however, California must request that assistance for it to kick in.
Amy Palmer, a spokesperson with the Governor’s Office of Emergency Services, said Monday evening that the state should formally make the request “within hours” and that it has been working with FEMA since last week to ensure the “fastest possible assistance.”
What can renters insurance do?
If you have renter’s insurance, file a claim as soon as you can.
Rick Dinger, president of Crescenta Valley Insurance, said renters policies often offer at least $25,000 to replace damaged personal property and help you find and pay for a new place to live.
If you are one of the many people who do not have renters insurance, you can apply for a low-interest loan from the federal government to replace things such as clothes, furniture and cars. The loans are available through the Small Business Administration. You don’t need to own a business to qualify, and renters can borrow up to $100,000.
More information is available here.
A possible new takeover bid for U.S. Steel emerged on Monday, teeing up more turmoil over the once-dominant company’s future after President Biden’s decision to block its acquisition by a Japanese company.
Lourenco Goncalves, the chief executive of an American competitor, Cleveland-Cliffs, said his company had “an All-American solution to save the United States Steel Corporation,” stressing that acquiring U.S. Steel was a matter of “when,” not “if.” But he offered no details of the bidding plans.
The renewed expression of interest from Cleveland-Cliffs comes less than two weeks after Mr. Biden blocked a $14 billion takeover of U.S. Steel by Nippon Steel, arguing that the sale posed a threat to national security. Cleveland-Cliffs tried to buy U.S. Steel in 2023, an offer that was rejected in favor of Nippon’s higher bid.
CNBC reported on Monday morning that Cleveland-Cliffs would seek to take over U.S. Steel and sell off its subsidiary, Big River Steel, to Nucor, another American producer. But Mr. Goncalves, at a news conference later in the day, would not confirm any partnership with Nucor on a bid.
U.S. Steel and Nucor did not immediately respond to requests for comment.
Investors seemed pleased by the potential bid, sending shares of U.S. Steel up as much as 10 percent on Monday when CNBC reported the potential offer. Shares of U.S. Steel finished about 6 percent higher on Monday but are down 23 percent over the past year, including Monday’s spike.
But the fate of Nippon’s proposed takeover remains in limbo. U.S. Steel and Nippon sued the United States government last week in the hopes of reviving their merger, accusing Mr. Biden and other senior administration officials of corrupting the review process for political gain and blocking the deal under false pretenses.
The companies filed a separate lawsuit against Cleveland-Cliffs, Mr. Goncalves and David McCall, international president of the United Steelworkers union. They argue that Cleveland-Cliffs and the head of the union illegally colluded to undermine the Nippon deal, assertions that both defendants called “baseless.”
On Saturday, the companies said the Biden administration had delayed enforcement of its executive order blocking Nippon’s takeover until June, to give the courts time to review the lawsuit.
“The problem is, we can’t make anything happen until the current management and the current board of U.S. Steel make the decision to abandon the merger agreement with Nippon Steel,” Mr. Goncalves said at a news conference in Butler, Pa., on Monday.
Given this rancor, it is unclear how receptive U.S. Steel would be to a new bid by Cleveland-Cliffs. If U.S. Steel does not engage, one option would be for Cleveland-Cliffs to take an offer to shareholders.
U.S. Steel was once the world’s largest steel producer, but the company has fallen in global rankings in recent years. Concerns about its long-term future are rooted in a failure to quickly adopt alternatives to traditional mills that are more energy-efficient and cost-effective. Nippon, U.S. Steel has argued, is the only buyer that can make substantial investments in multiple steel mills and protect jobs.
The United Steelworkers, which represents 11,000 U.S. Steel employees, has voiced strong opposition to the proposed merger with Nippon. The powerful union has said the Japanese company engaged in illegal trade practices and dealt with the union in bad faith. Previously, the union expressed its preference for a merger with Cleveland-Cliffs, which is unionized.
A new bid by Cleveland-Cliffs, if it materializes, risks antitrust scrutiny from federal antitrust regulators, though regulators in the Trump administration are widely expected to take a less aggressive approach to merger enforcement than their Biden administration predecessors.
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