Key insights
- A US judge rejected the Trump administration's attempt to block Hawaii's climate lawsuit against fossil fuel companies. This decision, similar to a previous ruling in Michigan, allows state-level climate litigation to proceed. While the direct market impact is limited, it signals potential future liabilities for energy companies, creating a slight bearish sentiment.
By Karen Sloan
April 15 (Reuters) - A federal judge on Wednesday dismissed a Trump administration lawsuit seeking to stop Hawaii from suing fossil fuel companies in state court over climate change, citing a “longstanding” policy against federal intervention in state court processes.
The dismissal by U.S. District Judge Helen Gillmor in Honolulu marks the second time in 2026 that federal courts have blocked the U.S. Department of Justice’s efforts to head off climate change suits in state courts.
A different federal judge in January threw out a similar suit that sought to block the state of Michigan from suing major oil companies.
Neither the Justice Department nor the Hawaii Attorney General’s office immediately provided comment Wednesday.
The Justice Department sued both Hawaii and Michigan in April of 2025, seeking to stop them from filing planned lawsuits against major oil companies over climate change, cases the administration said would imperil domestic energy production.
A day after that suit was filed, Hawaii sued various fossil fuel companies including BP, Chevron, ExxonMobil and Shell for allegedly selling products the companies knew would warm the planet.
Gillmor ruled that the Justice Department lacked standing to sue Hawaii because its case was too speculative. The Justice Department’s “attempt to predict the outcome of a yet-to-be-filed lawsuit and how it could possibly injure the federal government in the future is not a concrete injury-in-fact,” Gillmor wrote in her opinion.