Today, in District of Columbia v. Exxon Mobil Corp., a unanimous panel of the U.S. Court of Appeals for the D.C. Circuit rejected an attempt by oil company defendants to have a "greenwashing" lawsuit against them removed to federal court. Rejecting the oil companies' argument that the climate change-related claims should be heard in federal court, the D.C. Circuit instead concluded that the District of Columbia's district-law-based claims against oil companies could remain in district court where they were filed.
The unanimous opinion, written by Judge Neomi Rao, is quite clear and direct. It was joined by Judges Greg Katsas and Florence Pan. Here is how it summarizes the decision:
The District of Columbia sued several energy companies in the Superior Court of the District of Columbia, alleging the companies violated District law by making material misstatements about their products' effects on climate change. The defendants removed the case to the federal district court, which determined it lacked jurisdiction and remanded.
We agree that remand was proper. Under the time honored well-pleaded complaint rule, it is the cause of action chosen by the plaintiff that governs whether a lawsuit may be filed in federal court. Here, the District did not invoke a federal cause of action but relied instead on the District of Columbia's consumer protection statute. The companies raise what amount to federal defenses, but that is not enough to establish federal jurisdiction over the District's claims.
