Supreme Court Hears Landmark Climate Liability Case Against Oil Giants
The Supreme Court opened its new term by hearing whether state and local governments can sue fossil fuel companies for climate-related damages.
The Supreme Court of the United States opened its 2026-2027 term on October 5, 2026, with oral arguments in Suncor Energy Inc. v. County Commissioners of Boulder County. The case determines if state and local governments can use state tort laws to hold fossil fuel companies liable for climate-driven damages, such as wildfires, floods, and droughts. Boulder, Colorado, which sued Suncor Energy and ExxonMobil Inc. in 2018, seeks monetary damages for adaptation and infrastructure costs, including those from the 2021 Marshall Fire.
Suncor and ExxonMobil argue that the Clean Air Act and the U.S. Constitution preempt state-level claims, asserting that climate change is a global issue that falls under federal jurisdiction. The Trump administration and the Department of Justice have supported the oil companies, arguing that such lawsuits are unconstitutional attempts to regulate national energy policy. Conversely, Boulder contends the litigation focuses on corporate deception regarding climate risks rather than emissions regulation.
Justice Samuel Alito recused himself from the case due to financial holdings in oil and gas companies, leaving eight justices to decide. A ruling in favor of the energy companies could lead to the dismissal of approximately 60 similar lawsuits nationwide, including a major suit by California. A decision is expected by early 2027.
The court's new term also includes high-profile cases on semi-automatic rifle bans, immigration detention, and religious freedom. These proceedings occur amid record-low public approval and public criticism from President Donald Trump toward some of his own judicial appointees.