Summary
A second federal district court, this time in New York, has dismissed a city's lawsuit against Exxon Mobil for damages resulting from climate change.
Following the logic established by a federal district court in California, the most recent dismissal failed to be convinced by NYC's claim that climate change damages are a judicial issue.
The latest ruling leaves a small amount of room for state claims in the event that the White House reverses an existing greenhouse gas endangerment finding.
The two federal court decisions of the last month reduce the likelihood of a substantial, if unprecedented, downside risk for Exxon Mobil investors.
Oil and gas producer Exxon Mobil (XOM) has won another major federal climate lawsuit only a few weeks after defeating one that had been brought by the municipalities of Oakland and San Francisco. The most recent legal decision dismisses a complaint that had been brought by New York City against Exxon Mobil and its competitors Chevron (CVX) and ConocoPhillips(COP) earlier this year. BP (BP) and Royal Dutch Shell (RDS.A) (RDS.B) were also defendants in the New York City lawsuit, although they were not included in the latest dismissal. The grounds on which the New York City lawsuit was dismissed were similar to those on which the California version was dismissed, although there were some notable differences that have implications for investors in the aforementioned firms.
