Exxon cannot argue political motives as defense in climate suit – Mass. judge

A sign is seen in front of the Exxonmobil Baton Rouge Refinery in Baton Rouge, Louisiana, November 6, 2015. REUTERS/Lee Celano

(Reuters) – A Massachusetts judge on Tuesday barred Exxon Mobil Corp from arguing improper, political motives were behind the state’s attorney general suing the oil company for allegedly misleading consumers and investors about its role in climate change.

Suffolk County Superior Court Judge Peter Krupp in Boston struck 12 of the 38 defenses Exxon put forward to Massachusetts Attorney General Maura Healey’s lawsuit, including that the Democrat was trying to delegitimize its views on climate change.

She sued Exxon in 2019 following a three-year probe, alleging it downplayed the impact its fossil fuel products had on climate change and the risks it posed to its business, in an effort to boost profit and its stock price.

Exxon had argued that Healey, in collusion with climate activists, brought the case to punish it for its political stances on climate change and was violating its due process rights.

But Krupp said that Exxon could no longer pursue that defense after a New York judge in 2019 rejected those same arguments in a federal lawsuit the company filed challenging investigations by Healey and New York’s attorney general.

The 2nd U.S. Circuit Court of Appeals upheld that decision last week.

Krupp said even Exxon had not already litigated those constitutional defenses to their conclusion, none of its factual allegations “plausibly suggest it was singled out for disparate treatment.”

“Nor do they plausibly suggest that the Mass AG is solely engaged in political retaliation and lacks a good faith belief that Exxon engaged in fraud,” he wrote.

Krupp said Exxon could likewise not argue the state could not pursue those claims after promoting the sale of natural gas and fossil fuel itself, saying such defenses would frustrate public policy.

Healey, who is running for governor, in a statement called the ruling “another significant victory in our case against Exxon and its many failed attempts to block our investigation.”

Exxon, represented by Justin Anderson of Paul, Weiss, Rifkind, Wharton & Garrison, in a statement said it was “reviewing the decision and evaluating next steps.”

Healey’s case has progressed farther than most of the myriad lawsuits pending by state and local governments seeking to hold energy companies responsible for climate change. Exxon in 2019 prevailed at trial in a case by New York.

While Exxon has also asked Massachusetts’ top court to dismiss her claims, justices on the Massachusetts Supreme Judicial Court during arguments earlier this month appeared reluctant to do so.

The case is Commonwealth of Massachusetts v. Exxon Mobil Corp, Suffolk County Superior Court, Massachusetts, No. 1984CV03333.

For Massachusetts: Assistant Attorney General Seth Schofield

For Exxon: Justin Anderson of Paul, Weiss, Rifkind, Wharton & Garrison

(NOTE: This story has been updated with a comment from Exxon.)

Read more:

Exxon Mobil loses appeal to stop climate change probes

Mass. top court skeptical of Exxon defense in climate change suit

Exxon must face Massachusetts lawsuit alleging climate change deceit

Massachusetts accuses Exxon in lawsuit of climate change deceit

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