Judge tosses Trump DOJ's lawsuit seeking to block Michigan climate case

By Nate Raymond

Jan 26 (Reuters) - A federal judge has dismissed a lawsuit President Donald Trump's administration had filed that sought to block the state of Michigan from suing major oil companies in an attempt to hold them responsible for the harms of climate change.

U.S. District Judge Jane Beckering in Grand Rapids tossed the U.S. Department of Justice's case on Saturday, a day after Michigan Attorney General Dana Nessel, a Democrat, filed a lawsuit accusing members of the fossil fuel industry of colluding to forestall meaningful competition from renewable energy.

Beckering's ruling did not reference the antitrust case the state filed on Friday. But Nessel's office has said the case stemmed from Michigan's efforts to investigate "the fossil fuel industry’s persistent cover-up and deception about climate change."

Beckering said the Justice Department's case was "too speculative," as it relied on unspecified claims that Michigan might file against unspecified non-parties at some unknown point that could ultimately be preempted by federal law.

Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division in a statement on Monday portrayed Michigan's decision before Beckering ruled to file its antitrust case in federal court, as opposed to state court, as a sign it had "already capitulated."

Many other states suing oil companies over climate change have pursued state law claims in state courts, which are generally viewed as more friendly to plaintiffs. Gustafson said by suing in federal court, "Michigan abandoned its threats to regulate global greenhouse gas emissions through frivolous state tort claims in state court."

Nessel's office did not respond to a request for comment on Monday.

The Justice Department had sued Michigan in April as part of a legal campaign it announced seeking to prevent four Democratic-led states from enforcing "burdensome and ideologically motivated" laws or pursuing lawsuits against the fossil fuel industry over the harms caused by climate change.

Trump had days earlier signed an executive order entitled “Protecting American Energy from State Overreach" that directed Attorney General Pam Bondi to take action to stop the enforcement of state laws and lawsuits that burden the production of oil, gas and other domestic energy resources.

Numerous states and local governments have in recent years filed lawsuits accusing companies like BP BP.L, Chevron CVX.N, Exxon Mobil XOM.N and Shell SHEL.L of deceiving the public about the role fossil fuels have played in causing climate change. The companies have denied wrongdoing.

The Justice Department's lawsuit sought to preemptively prevent Michigan from joining the fray, after Nessel in 2024 retained the law firms Sher Edling; DiCello Levitt; and Hausfeld to work together on climate-related litigation.

The Justice Department alleged that any state-law lawsuit Michigan filed would constitute an "extraordinary extraterritorial reach" that would unlawfully undermine federal regulation of greenhouse gas emissions and the administration's foreign policy objectives.

But Beckering, who was appointed by Democratic President Joe Biden, in Saturday's ruling said the administration's lawsuit was even more attenuated than one the U.S. Supreme Court last year declined to hear by 19 Republican-led states seeking to block five Democratic-led states from pursuing similar climate lawsuits.

The case is United States v State of Michigan, U.S. District Court for the Western District of Michigan, No. 1:25-cv-00496.

For the United States: John Adams of the U.S. Department of Justice

For Michigan: Richard Kuhl of the Michigan Department of Attorney General

Read more:

Michigan sues oil companies, saying they colluded to restrain EV competition

Trump administration sues four Democratic-led states to block climate laws, lawsuits

US Supreme Court nixes challenge to state climate suits against oil firms