In a setback for big oil companies such as Exxon Mobil ( NYSE: XOM ), Chevron ( NYSE: CVX ) and Shell ( SHEL ), the 3rd U.S. Circuit Court of Appeals ruled on Wednesday that lawsuits brought by Delaware and Hoboken, N.J., seeking compensation for the impacts of climate change should be decided in state, not federal courts , The Wall Street Journal reports.
The decision is the latest procedural victory by state and municipal governments, which have sought to bring climate liability cases against major oil companies under state laws, after earlier efforts under federal laws were unsuccessful.
WSJ said it was the sixth such appeals court ruling this year to keep climate cases by states and cities in state court, and represents a growing legal threat to the oil industry.
Theodore Boutrous, Chevron's ( CVX ) attorney in the cases, said the cases belong in federal court because of "their sweeping implications for national energy policy, national security, foreign policy and other uniquely federal interests."
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Also on Wednesday, the 5th U.S. Circuit Court of Appeals temporarily reinstated the Biden administration's pause on energy leasing on federal lands and waters .
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Court rules oil companies must face climate liability lawsuits in states - WSJ