A federal judge in Texas ordered a lawsuit being pursued by oil giant Exxon Mobil to a Manhattan court, saying New York would be a more appropriate venue for the dispute.
Exxon Mobil had been suing the Attorneys General of the states of New York and Massachusetts over allegations that the company had misled investors over the potential risks of climate change. The Dallas judge who ordered the case be moved to New York opined that a dispute centered on events which transpired in the Northeast could better be resolved there.
While U.S. District Judge Ed Kinkeade did note that Exxon Mobil’s suit involves “important issues,” he wrote in his ruling that it belonged in Manhattan. The oil giant had charged the attorneys general with starting a joint investigation into possible consumer and securities fraud in “bad faith.”
The alleged collusion and conspiracy to defame and dismantle investor allegedly had its roots in New York City. Exxon Mobil alleges that the attorneys generals had worked with climate change activists at a “United for Clean Power” press conference on March 29, 2016, in Manhattan.
In delivering his ruling, Kinkeade summarized the grievances Exxon Mobil had raised. The company charged New York Attorney General Eric Schneiderman and Massachusetts Attorney General Maura Healey with beginning a probe for political purposes. The legal team for Exxon had been trying to prove pressure was being put on them so they’d change their public stance on global warming and climate change.
“Exxon claims that the ultimate goal of the attorneys general is to silence everyone in the oil and gas industry from debating the climate change issue at any level,” wrote Kinkeade as part of his Wednesday ruling.
As the case in Texas had dragged on, it also attracted political attention at a national level.
House Republicans subpoenaed Healey and Schneiderman, attempting to derail their joint investigation with concerns echoing those of Exxon Mobil. Neither of the attorneys general said they’d pay the subpoenas any attention.
Although the change in venue is being viewed as a major setback for the plaintiffs, Kinkeade mentioned he was suspicious of the attorneys generals motives. He questioned whether Healey and Schneiderman were “trying to hide something,” as the two had made an agreement with climate change activists not to publicly disclose their contacts. The judge felt the agreements should be made available to Exxon Mobil’s legal team, given that the attorneys general had requested paperwork from the company dating back nearly 40 years.
Amy Spitalnick, a spokesperson for Attorney General Schneiderman, was disdainful of Kinkeade’s ruling.
She said the document was “riddled with factual errors and oil-industry spin,” inviting Exxon Mobil to make the same claims it had in a New York court.
Healey agreed, separately adding that “we will continue to argue that this frivolous lawsuit should be dismissed.”
Sources
Exxon Dealt a Blow as Texas Judge Sends Climate Suit to N.Y.
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