Charleston, City of v. Brabham Oil Co.

ELR Citation: 53 ELR 20101
No(s). 2:20-cv-03579-RMG (D.S.C. Jul 5, 2023) (Gergel, J.)

A district court granted the city of Charleston's motion to remand to state court its lawsuit against fossil fuel companies for allegedly contributing to climate change by producing and selling fossil fuel products while deceiving consumers and the public about the dangers associated with them. The city initially sued in state court, arguing the companies' conduct had altered the environment in and around the city by causing a rise in sea level and an increase in extreme weather events. The companies removed the suit to federal court based on eight grounds: federal question jurisdiction, the Outer Continental Shelf Lands Act, federal officer removal, Grable jurisdiction, CAA preemption, federal enclaves, Class Action Fairness Act, and fraudulent joinder. The court determined that the Fourth Circuit's opinion in Mayor & City Council of Baltimore v. BP P.L.C. foreclosed a number of the companies' arguments, but that they presented new evidence in support of federal officer jurisdiction, Grable jurisdiction, and fraudulent joinder. However, the court found that these similarly failed to provide grounds for federal jurisdiction. The companies did not claim that a federal officer directed them to engage in the alleged misinformation campaign, failed to establish there was federal question jurisdiction under Grable, and failed to show it was not possible for the city to establish claims against the two companies argued to be fraudulently joined. The court granted the city's motion and remanded the suit to state court.

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