throbber
Case: 21-2728 Document: 137 Page: 1 Date Filed: 08/17/2022
`
`PRECEDENTIAL
`
`UNITED STATES COURT OF APPEALS
`FOR THE THIRD CIRCUIT
`_______________
`
`No. 21-2728
`_______________
`
`CITY OF HOBOKEN
`
`v.
`
`CHEVRON CORPORATION; CHEVRON U.S.A. INC.;
`EXXON MOBIL CORPORATION; EXXONMOBIL OIL
`CORPORATION; SHELL PLC; BP P.L.C.; BP AMERICA,
`INC.; CONOCOPHILLIPS; CONOCOPHILLIPS CO.;
`PHILLIPS 66; PHILLIPS 66 COMPANY; AMERICAN
`PETROLEUM INSTITUTE; SHELL USA,
`Appellants.
`
`_______________
`
`On Appeal from the United States District Court
`for the District of New Jersey
`(D.C. No. 2:20-cv-14243)
`District Judge: Honorable John M. Vazquez
`_______________
`
`No. 22-1096
`_______________
`
`STATE OF DELAWARE, ex rel. Kathleen Jennings,
`Attorney General of the State of Delaware
`
`v.
`
`

`

`Case: 21-2728 Document: 137 Page: 2 Date Filed: 08/17/2022
`
`BP AMERICA INC.; BP P.L.C.; CHEVRON
`CORPORATION; CHEVRON U.S.A. INC.;
`CONOCOPHILLIPS; CONOCOPHILLIPS COMPANY;
`PHILLIPS 66; PHILLIPS 66 COMPANY; EXXON MOBIL
`CORPORATION; EXXONMOBIL OIL CORPORATION;
`XTO ENERGY INC.; HESS CORPORATION;
`MARATHON OIL CORPORATION; MARATHON
`PETROLEUM CORPORATION; MARATHON
`PETROLEUM COMPANY LP; SPEEDWAY LLC;
`MURPHY OIL CORPORATION; MURPHY USA INC.;
`SHELL PLC; SHELL USA; CITGO PETROLEUM
`CORPORATION; TOTALENERGIES SE.; OCCIDENTAL
`PETROLEUM CORPORATION; DEVON ENERGY
`CORPORATION; APACHE CORPORATION; CNX
`RESOURCES CORPORATION; CONSOL ENERGY INC.;
`OVINTIV, INC.; AMERICAN PETROLEUM INSTITUTE;
`TOTALENERGIES MARKETING USA, INC.,
`Appellants.
`
`_______________
`
`On Appeal from the United States District Court
`for the District of Delaware
`(D.C. No. 1:20-cv-01429)
`District Judge: Honorable Leonard P. Stark
`_______________
`
`Argued: June 21, 2022
`
`Before: McKEE, RESTREPO, and BIBAS, Circuit Judges
`
`(Filed: August 17, 2022)
`_______________
`
`2
`
`

`

`Case: 21-2728 Document: 137 Page: 3 Date Filed: 08/17/2022
`
`Theodore J. Boutrous, Jr.
`GIBSON DUNN & CRUTCHER
`333 S. Grand Ave.
`Los Angeles, CA 90071
`
`Thomas G. Hungar
`GIBSON DUNN & CRUTCHER
`1050 Connecticut Ave. NW
`Washington, DC 20036
`Counsel for Appellants Chevron Corp. & Chevron USA
`Inc. (Nos. 21-2728 & 22-1096)
`
`
`Joel M. Silverstein
`Herbert J. Stern
`STERN KILCULLEN & RUFOLO
`325 Columbia Turnpike, Suite 110
`
`
`
`Florham Park, NJ 07932
`
`
`Counsel for Appellants Chevron Corp. & Chevron USA
`Inc. (No. 21-2728)
`
`
`Joshua D. Dick
`GIBSON DUNN & CRUTCHER
`555 Mission St., Suite 3000
`San Francisco, CA 94105
`
`Andrea E. Neuman
`GIBSON DUNN & CRUTCHER
`200 Park Ave., 47th Floor
`New York, NY 10166
`
`William E. Thomson, III
`GIBSON DUNN & CRUTCHER
`333 S. Grand Ave.
`
`3
`
`

`

`Case: 21-2728 Document: 137 Page: 4 Date Filed: 08/17/2022
`
`Los Angeles, CA 90071
`Counsel for Appellants Chevron Corp. & Chevron USA
`Inc. (No. 22-1096)
`
`
`William T. Marks
`Kannon K. Shanmugam
`PAUL WEISS RIFKIND WHARTON & GARRISON
`2001 K St. NW
`Washington, DC 20006
`
`Daniel J. Toal
`Theodore V. Wells, Jr.
`PAUL WEISS RIFKIND WHARTON & GARRISON
`1285 Ave. of the Americas
`New York, NY 10019
`Counsel for Appellants Exxon Mobil Corp. & ExxonMobil
`Oil Corp. (Nos. 21-2728 & 22-1096) & XTO Energy
`(No. 22-1096)
`
`
`Kevin H. Marino
`John D. Tortorella
`MARINO TORTORELLA & BOYLE
`437 S. Blvd.
`Chatham, NJ 07928
`Counsel for Appellants Exxon Mobil Corp. & ExxonMobil
`Oil Corp. (No. 21-2728)
`
`
`Paul J. Fishman
`ARNOLD & PORTER KAYE SCHOLER
`One Gateway Ctr., Suite 1025
`Newark, NJ 07102
`
`
`4
`
`

`

`Case: 21-2728 Document: 137 Page: 5 Date Filed: 08/17/2022
`
`Matthew T. Heartney
`John D. Lombardo
`ARNOLD & PORTER KAYE SCHOLER
`777 S. Figueroa St., 44th Floor
`Los Angeles, CA 90017
`
`Jonathan W. Hughes
`ARNOLD & PORTER KAYE SCHOLER
`3 Embarcadero Ctr., 10th Floor
`San Francisco, CA 94111
`
`Nancy G. Milburn
`Diana E. Reiter
`ARNOLD & PORTER KAYE SCHOLER
`250 W. 55th St.
`New York, NY 10019
`Counsel for Appellants BP PLC & BP America Inc.
`(Nos.21-2728 & 22-1096)
`
`
`Steven M. Bauer
`Margaret Tough
`LATHAM & WATKINS
`505 Montgomery St., Suite 2000
`San Francisco, CA 94111
`
`Daniel R. Brody
`Jameson R. Jones
`BARTLIT BECK
`1801 Wewatta St., Suite 1200
`Denver, CO 80202
`Counsel for Appellants ConocoPhillips & ConocoPhillips
`Co. (Nos. 21-2728 & 22-1096)
`
`
`
`5
`
`

`

`Case: 21-2728 Document: 137 Page: 6 Date Filed: 08/17/2022
`
`Jeffrey S. Chiesa
`Michael K. Plumb
`Dennis M. Toft
`CHIESA SHAHINIAN & GIANTOMASI
`One Boland Dr.
`West Orange, NJ 07024
`Counsel for Appellants ConocoPhillips & ConocoPhillips
`Co. (No. 21-2728)
`
`
`Daniel J. Brown
`Alexandra M. Joyce
`MCCARTER & ENGLISH
`405 N. King St.
`Renaissance Ctr., 8th Floor
`Wilmington, DE 19801
`Counsel for Appellants ConocoPhillips & ConocoPhillips
`Co. (No. 22-1096)
`
`
`Steven M. Bauer
`LATHAM & WATKINS
`505 Montgomery St., Suite 2000
`San Francisco, CA 94111
`Counsel for Appellants Phillips 66 & Phillips 66 Co.
`(Nos.21-2728 & 22-1096)
`
`
`Anthony P. Callaghan
`GIBBONS
`One Pennsylvania Plaza, 37th Floor
`New York, NY 10119
`
`Sylvia-Rebecca Gutierrez
`Thomas R. Valen
`GIBBONS
`
`6
`
`

`

`Case: 21-2728 Document: 137 Page: 7 Date Filed: 08/17/2022
`
`One Gateway Ctr.
`Newark, NJ 07102
`Counsel for Appellants Phillips 66 & Phillips 66 Co.
`(No. 21-2728)
`
`
`Daniel J. Brown
`Alexandra M. Joyce
`MCCARTER & ENGLISH
`405 N. King St.
`Renaissance Ctr., 8th Floor
`Wilmington, DE 19801
`
`Margaret Tough
`LATHAM & WATKINS
`505 Montgomery St., Suite 2000
`San Francisco, CA 94111
`
`Robert W. Whetzel
`RICHARDS LAYTON & FINGER
`920 N. King St.
`One Rodney Square
`Wilmington, DE 19801
`Counsel for Appellants Phillips 66 & Phillips 66 Co.
`(No. 22-1096)
`
`
`Kathryn M. Barber
`Brian D. Schmalzbach
`MCGUIREWOODS
`800 E. Canal St.
`Gateway Plaza
`Richmond, VA 23219
`
`
`7
`
`

`

`Case: 21-2728 Document: 137 Page: 8 Date Filed: 08/17/2022
`
`Jeffrey M. Beyer
`Anthony J. Zarillo, Jr.
`RIKER DANZIG SCHERER HYLAND & PERRETTI
`One Speedwell Ave.
`Headquarters Plaza
`Morristown, NJ 07962
`Counsel for Appellant American Petroleum Institute
`(No. 21-2728)
`
`
`Kevin J. Mangan
`WOMBLE BOND DICKINSON
`1313 N. Market St., Suite 1200
`Wilmington, DE 19801
`
`Andrew G. McBride
`MCGUIREWOODS
`888 16th St. NW, Suite 500
`Washington, DC 20006
`Counsel for Appellant American Petroleum Institute
`(No. 22-1096)
`
`
`
`
`
`[Argued]
`
`
`David C. Frederick
`Grace W. Knofczynski
`Daniel Severson
`KELLOGG HANSEN TODD FIGEL & FREDERICK
`1615 M St. NW
`Sumner Square, Suite 400
`Washington, DC 20036
`Counsel for Appellants Shell PLC & Shell USA Inc.
`(Nos. 21-2728 & 22-1096)
`
`
`Steven L. Caponi
`K&L GATES
`
`8
`
`

`

`Case: 21-2728 Document: 137 Page: 9 Date Filed: 08/17/2022
`
`600 N. King St., Suite 901
`Wilmington, DE 19801
`Counsel for Appellants Shell PLC & Shell USA Inc.
`(No. 22-1096)
`
`
`Joseph J. Bellew
`WHITE & WILLIAMS
`600 N. King St., Suite 800
`Wilmington, DE 19801
`
`Megan H. Berge
`BAKER BOTTS
`101 California St., Suite 3200
`San Francisco, CA 94111
`
`J. Scott Janoe
`BAKER BOTTS
`910 Louisiana St.
`One Shell Plaza, 37th Floor
`Houston, TX 77002
`Counsel for Appellants Hess Corp. & Murphy Oil Corp.
`(No. 22-1096)
`
`
`Tristan L. Duncan
`SHOOK HARDY & BACON
`2555 Grand Blvd.
`Kansas City, MO 64108
`
`Daniel B. Rogers
`SHOOK HARDY & BACON
`201 S. Biscayne Blvd., Suite 3200
`Miami, FL 33131
` Counsel for Appellant Murphy USA (No. 22-1096)
`
`9
`
`

`

`Case: 21-2728 Document: 137 Page: 10 Date Filed: 08/17/2022
`
`
`Michael A. Barlow
`ABRAMS & BAYLISS
`20 Montchanin Rd., Suite 200
`Wilmington, DE 19807
`
`Robert P. Reznick
`ORRICK HERRINGTON & SUTCLIFFE
`1152 15th St. NW
`Columbia Ctr.
`Washington, DC 20005
` Counsel for Appellant Marathon Oil Corp. (No. 22-1096)
`
`Shannon S. Broome
`Ann M. Mortimore
`HUNTON ANDREWS KURTH
`50 California St., Suite 1700
`San Francisco, CA 94111
`
`Shawn P. Regan
`HUNTON ANDREWS KURTH
`200 Park Ave., 52nd Floor
`New York, NY 10166
`
`Antionette D. Hubbard
`MARON MARVEL BRADLEY & ANDERSON
`1201 N. Market St., Suite 900
`Wilmington, DE 19801
`Counsel for Appellants Marathon Petroleum Corp., Mara-
`thon Petroleum Co. LP, & Speedway LLC (No. 22-1096)
`
`
`Robert E. Dunn
`EIMER STAHL
`
`10
`
`

`

`Case: 21-2728 Document: 137 Page: 11 Date Filed: 08/17/2022
`
`99 S. Almaden Blvd., Suite 642
`San Jose, CA 95113
`
`Nathan P. Eimer
`Pamela R. Hanebutt
`Lisa S. Meyer
`EIMER STAHL
`224 S. Michigan Ave., Suite 1100
`Chicago, IL 60604
`Counsel for Appellant Citgo Petroleum Corp. (No. 22-
`1096)
`
`
`Jeffrey L. Moyer
`RICHARDS LAYTON & FINGER
`920 N. King St.
`One Rodney Square
`Wilmington, DE 19801
`
`Vanessa Lavely
`Kevin J. Orsini
`CRAVATH SWAINE & MOORE
`825 Eighth Ave.
`Worldwide Plaza
`New York, NY 10019
`Counsel for Appellant Occidental Petroleum Corp.
`(No. 22-1096)
`
`
`Joy C. Fuhr
`Brian D. Schmalzbach
`MCGUIREWOODS
`800 E. Canal St.
`Gateway Plaza
`Richmond, VA 23219
`
`11
`
`

`

`Case: 21-2728 Document: 137 Page: 12 Date Filed: 08/17/2022
`
`
`Christian J. Singewald
`WHITE & WILLIAMS
`600 N. King St., Suite 800
`Wilmington, DE 19801
` Counsel for Appellant Devon Energy Corp. (No. 22-1096)
`
`Michael A. Barlow
`ABRAMS & BAYLISS
`20 Montchanin Rd., Suite 200
`Wilmington, DE 19807
`
`Alexandra Ewing
`Robert W. Whetzel
`RICHARDS LAYTON & FINGER
`920 N. King St.
`One Rodney Square
`Wilmington, DE 19801
`
`Robert P. Reznick
`ORRICK HERRINGTON & SUTCLIFFE
`1152 15th St. NW
`Columbia Ctr.
`Washington, DC 20005
` Counsel for Appellant Apache Corp. (No. 22-1096)
`
`J. Benjamin Aguinaga
`JONES DAY
`2727 N. Harwood St., Suite 600
`Dallas, TX 75201
`
`Noel J. Francisco
`David M. Morrell
`
`12
`
`

`

`Case: 21-2728 Document: 137 Page: 13 Date Filed: 08/17/2022
`
`JONES DAY
`51 Louisiana Ave. NW
`Washington, DC 20001
`
`David C. Kiernan
`JONES DAY
`555 California St., 26th Floor
`San Francisco, CA 94104
`Counsel for Appellants CNX Resources Corp., Consol
`Energy Inc., & Ovintiv Inc. (No. 22-1096)
`
`
`Tracy A. Roman
`Kathleen T. Sooy
`CROWELL & MORING
`1001 Pennsylvania Ave. NW
`Washington, DC 20004
` Counsel for Appellants CNX Resources Corp. & Consol
`Energy Inc. (No. 22-1096)
`
`Honor R. Costello
`CROWELL & MORING
`590 Madison Ave., 20th Floor
`New York, NY 10022
` Counsel for Appellant Consol Energy Inc. (No. 22-1096)
`
`Michael F. Healy
`SHOOK HARDY & BACON
`555 Mission St., Suite 2300
`San Francisco, CA 94105
`
`Mackenzie M. Wrobel
`DUANE MORRIS
`1201 N. Market St., Suite 501
`
`13
`
`

`

`Case: 21-2728 Document: 137 Page: 14 Date Filed: 08/17/2022
`
`
`
`Wilmington, DE 19801
`
`Michael L. Fox
`DUANE MORRIS
`7500 B St., Suite 2900
`San Diego, CA 92101
` Counsel for Appellant Ovintiv Inc. (No. 22-1096)
`
`Blake K. Rohrbacher
`Alexandra Ewing
`Robert W. Whetzel
`RICHARDS LAYTON & FINGER
`920 N. King St.
`One Rodney Square
`Wilmington, DE 19801
`Counsel for Appellants TotalEnergies Marketing USA Inc.
`& Total Energies SE (No. 22-1096)
`
`
`
` [Argued]
`
`
`
`Jonathan S. Abady
`Matthew D. Brinckerhoff
`Ananda V. Burra
`Max R. Selver
`EMERY CELLI BRINCKERHOFF ABADY WARD & MAAZEL
`600 Fifth Ave., 10th Floor
`New York, NY 10020
`
`Gerald Krovatin
`Helen A. Nau
`KROVATIN NAU
`60 Park Place, Suite 1100
`Newark, NJ 07102
` Counsel for Appellee City of Hoboken (No. 21-2728)
`
`
`
`
`
`
`
`14
`
`

`

`Case: 21-2728 Document: 137 Page: 15 Date Filed: 08/17/2022
`
`
`
`[Argued]
`
`Stephanie D. Biehl
`Matthew K. Edling
`Quentin C. Karpilow
`Victor M. Sher
`
`SHER EDLING
`100 Montgomery St., Suite 1410
`San Francisco, CA 94104
`
`Ralph K. Durstein, III
`Christian D. Wright
`OFFICE OF ATTORNEY GENERAL OF DELAWARE
`Delaware Department of Justice
`820 N. French St.
`Carvel Office Building
`Wilmington, DE 19801
`
`Jameson A.L. Tweedie
`DELAWARE DEPARTMENT OF JUSTICE
`Environmental Unit
`391 Lukens Dr.
`New Castle, DE 19720
` Counsel for Appellee Delaware (No. 22-1096)
`
`James P. Davy
`ALL RISE TRIAL & APPELLATE
`P.O. Box 15216
`Philadelphia, PA 19125
`Counsel for Amici Federal Courts & Foreign Relations
`Scholars (No. 22-1096)
`
`
`Philip S. Goldberg
`SHOOK HARDY & BACON
`1800 K St. NW, Suite 1000
`
`15
`
`

`

`Case: 21-2728 Document: 137 Page: 16 Date Filed: 08/17/2022
`
`Washington, DC 20006
`Counsel for Amici National Association of Convenience
`Stores, NATSO Inc, Society of Gasoline Marketers of
`America & National Association of Manufacturers
`(No. 21-2728) & National Association of Manufacturers
`(No. 22-1096)
`
`
`Jamison Davies
`NEW YORK CITY LAW DEPARTMENT
`100 Church St.
`New York, NY 10007
` Counsel for Amicus City of New York (No. 21-2728)
`
`Peter D. Huffman
`NATURAL RESOURCES DEFENSE COUNCIL
`1152 15th St. NW, Suite 300
`Washington, DC 20005
`Counsel for Amicus Natural Resources Defense Council
`(Nos. 21-2728 & 22-1096)
`
`
`Christian D. Wright
`OFFICE OF ATTORNEY GENERAL OF DELAWARE
`Delaware Department of Justice
`820 N. French St.
`Carvel Office Building
`Wilmington, DE 19801
`Counsel for Amici Delaware, Connecticut, Hawaii,
`Maine, Maryland, Minnesota, New Jersey, New Mexico,
`New York, Oregon, Rhode Island, Washington, Massachu-
`setts, Pennsylvania, & District of Columbia (No. 21-2728)
`
`
`Aaron Kleinbaum
`OFFICE OF ATTORNEY GENERAL OF NEW JERSEY
`
`16
`
`

`

`Case: 21-2728 Document: 137 Page: 17 Date Filed: 08/17/2022
`
`Division of Law
`25 Market St.
`Hughes Justice Complex
`Trenton, NJ 08625
`Counsel for Amicus New Jersey (No. 22-1096)
`
`
`Thomas M. Fisher
`OFFICE OF ATTORNEY GENERAL OF INDIANA
`302 W. Washington St.
`Indianapolis, IN 46204
`Counsel for Amici Indiana (Nos. 21-2728 & 22-1096) &
`Alabama, Alaska, Arkansas, Georgia, Kansas, Kentucky,
`Mississippi, Missouri, Montana, Nebraska, Oklahoma,
`South Carolina, Texas, Utah, Virginia, & Wyoming (No.
`22-1096)
`
`
`William M. Jay
`Andrew Kim
`GOODWIN PROCTER
`1900 N St. NW
`Washington, DC 20036
`Counsel for Amicus Chamber of Commerce of the United
`States of America (Nos. 21-2728 & 22-1096)
`
`
`Tristan L. Duncan
`SHOOK HARDY & BACON
`2555 Grand Blvd.
`Kansas City, MO 64108
`
`Daniel B. Rogers
`SHOOK HARDY & BACON
`201 S. Biscayne Blvd., Suite 3200
`Miami, FL 33131
`
`17
`
`

`

`Case: 21-2728 Document: 137 Page: 18 Date Filed: 08/17/2022
`
`Counsel for Amici General Richard B. Myers & Admiral
`Michael G. Mullen (No. 21-2728)
`
`
`Patrick A. Thronson
`JANET & SUGGS
`4 Reservoir Circle, Suite 200
`Baltimore, MD 21208
`Counsel for Amici National League of Cities & United
`States Conference of Mayors (Nos. 21-2728 & 22-1096)
`
`
`Scott L. Nelson
`PUBLIC CITIZEN LITIGATION GROUP
`1600 20th St. NW
`Washington, DC 20009
`Counsel for Amicus Public Citizen Inc. (No. 22-1096)
`
`
`Jonathan W. Cuneo
`CUNEO GILBERT & LADUCA
`4725 Wisconsin Ave NW, Suite 200
`Washington, DC 20016
`Counsel for Amicus Robert S. Taylor (No. 22-1096)
`
`
`William A. Rossbach
`ROSSBACH LAW
`401 N. Washington St.
`P.O. Box 8988
`Missoula, MT 59807
`Counsel for Amici Robert Kopp, Michael Oppenheimer,
`Kristina Dahl, Brenda Ekwurzel, Peter C. Frumhoff, Gary
`B. Griggs, Sverre L. Leroy, L. Delta Merner, & Donald J.
`Wuebbles (No. 22-1096)
`
`
`
`18
`
`

`

`Case: 21-2728 Document: 137 Page: 19 Date Filed: 08/17/2022
`
`Ron Kilgard
`KELLER ROHRBACK
`3101 N. Central Ave., Suite 1400
`Phoenix, AZ 85012
`Counsel for Amici Robert Brulle, Center for Climate In-
`tegrity, Chesapeake Climate Action Network, Justin Far-
`rell, Benjamin Franta, Stephan Lewandowsky, Naomi
`Oreskes, Geoffrey Supran, & Union of Concerned Scien-
`tists (No. 22-1096)
`
`
`Kenneth T. Kristl
`WIDENER UNIVERSITY SCHOOL OF LAW
`4601 Concord Pike
`P.O. Box 7474
`Wilmington, DE 19803
`Counsel for Amici Legal Scholars (No. 22-1096)
`
`
`_______________
`
`OPINION OF THE COURT
`_______________
`
`BIBAS, Circuit Judge.
`Our federal system trusts state courts to hear most cases—
`even big, important ones that raise federal defenses. Plaintiffs
`choose which claims to file, in which court, and under which
`law. Defendants may prefer federal court, but they may not re-
`move their cases to federal court unless federal laws let them.
`Here, they do not.
`Oil companies ask us to hear two sweeping climate-change
`suits. But the plaintiffs filed those suits in state court based only
`
`19
`
`

`

`Case: 21-2728 Document: 137 Page: 20 Date Filed: 08/17/2022
`
`on state tort law. And there is no federal hook that lets defend-
`ants remove them to federal court. So we will affirm the Dis-
`trict Courts’ orders sending them back.
`I. CLIMATE CHANGE COMES TO COURT
`Coastal residents have a problem. In recent decades, the
`oceans have risen, harming beaches and marshland. And com-
`munities have suffered torrential rains and stronger hurricanes.
`Many residents blame fossil fuels for climate change. Burn-
`ing fossil fuels releases carbon dioxide. And that carbon diox-
`ide, studies suggest, can heat the air and eventually make the
`oceans rise.
` Angered, cities and states across the country have sued oil
`companies. They say the oil companies knew how dangerous
`fossil fuels were for the environment yet did not slow produc-
`tion. And they said nothing about its dangers; on the contrary,
`they labored to convince the public that burning fossil fuels
`was fine.
`Here, we address two of those suits. Delaware and Hobo-
`ken, New Jersey each sued the oil companies in state court for
`state-law torts. By “produc[ing], marketing, and s[e]l[ling] fos-
`sil fuels,” they said, the oil companies had worsened climate
`change. Hoboken App. 68. So they sought damages for the
`environmental harm they had suffered and injunctions to stop
`future harm.
`Though these suits started in state court, they did not stay
`there. The oil companies promptly removed them to federal
`district courts. The suits’ broad focus on “global climate
`
`20
`
`

`

`Case: 21-2728 Document: 137 Page: 21 Date Filed: 08/17/2022
`
`
`
`change,” the companies argued, “demand[ed] resolution by a
`federal court under federal law.” Hoboken App. 194; Del. App.
`94. They listed several reasons why:
`
`
`the tort claims arose under federal law, either be-
`cause:
`o they were inherently federal, not state claims,
`or
`o they raised substantive federal issues;
`the suits related to producing oil on the Outer Con-
`tinental Shelf; and
`
`the oil companies were acting under federal officers.
`But both District Courts rejected these theories. And they
`were in good company: so far, four other circuits have refused
`to allow the oil companies to remove similar state tort suits to
`federal court. See Rhode Island v. Shell Oil Prods. Co., 35
`F.4th 44, 50–51 (1st Cir. 2022); Mayor & City Council of Balt.
`v. BP P.L.C., 31 F.4th 178, 238 (4th Cir. 2022); City & Cnty.
`of Honolulu v. Sunoco LP, 2022 WL 2525427, at *2 (9th Cir.
`July 7, 2022); Cnty. of San Mateo v. Chevron Corp., 32 F.4th
`733, 744 (9th Cir. 2022); Bd. of Cnty. Comm’rs of Boulder
`Cnty. v. Suncor Energy (U.S.A.) Inc., 25 F.4th 1238, 1246 (10th
`Cir. 2022).
`We agree with our sister circuits:
` These two lawsuits neither are inherently federal nor
`raise substantial federal issues that belong in federal
`court.
`
`21
`
`

`

`Case: 21-2728 Document: 137 Page: 22 Date Filed: 08/17/2022
`
` Oil production on the Outer Continental Shelf is too
`many steps removed from the burning of fuels that
`causes climate change.
` Plus, Delaware and Hoboken are not suing over
`actions that the companies were directed to take by
`federal officers.
`So we will affirm the District Courts’ orders remanding these
`cases to state court.
`II. THESE STATE TORT CLAIMS DO NOT
`“ARISE UNDER” FEDERAL LAW
`Not all claims belong in federal court. The Constitution
`limits us to hearing only cases involving claims “arising under”
`its provisions, federal laws, or treaties, or those involving ad-
`miralty or certain parties. U.S. Const. art. III, § 2, cl. 1. All
`other claims must go to state courts instead. The oil companies
`may remove these cases to federal court only if they present
`federal questions. 28 U.S.C. §§ 1331, 1441.
`Most federal-question cases allege violations of the Consti-
`tution, federal statutes, or federal common law. But Delaware
`and Hoboken allege only the torts of nuisance, trespass, negli-
`gence (including negligent failure to warn), and misrepresen-
`tation, plus consumer-fraud violations, all under state law. So
`the companies must show either that these state claims are
`completely preempted by federal law or that some substantial
`federal issue must be resolved. Caterpillar Inc. v. Williams,
`482 U.S. 386, 393 (1987); Grable & Sons Metal Prods., Inc. v.
`Darue Eng’g & Mfg., 545 U.S. 308, 313–14 (2005). They show
`neither.
`
`22
`
`

`

`Case: 21-2728 Document: 137 Page: 23 Date Filed: 08/17/2022
`
`A. These are state, not federal, claims
`If plaintiffs say their claims are state-law claims, we almost
`always credit that. That is because plaintiffs are “the master[s]
`of the[ir] claim[s].” Caterpillar, 482 U.S. at 392. They may
`“avoid federal jurisdiction by exclusive reliance on state law.”
`Id. After all, they choose to sue, so they choose why.
`But once in a great while, we “recharacteriz[e] a state law
`claim as a federal claim removable to [federal] court.” Goepel
`v. Nat’l Postal Mail Handlers Union, 36 F.3d 306, 312 (3d Cir.
`1994). We can do that only when some federal statute com-
`pletely preempts state law.
`Complete preemption is different from ordinary preemp-
`tion. Ordinary preemption is a defense that applies when in-
`compatible federal and state laws regulate the same actions. A
`defendant may raise ordinary preemption to defeat the plain-
`tiff’s state-law claim. Caterpillar, 482 U.S. at 392–93.
`Complete preemption, by contrast, is a potent jurisdictional
`fiction. It lets courts recast a state-law claim as a federal one.
`Id. at 393. Defendants can thus remove the suit to federal court.
`Ordinary preemption defenses cannot work this alchemy. Id.
`But complete preemption is rare. Federal law completely
`preempts state law only when there is (1) a federal statute that
`(2) authorizes federal claims “vindicating the same interest as
`the state claim.” Goepel, 36 F.3d at 315. Only statutes that
`check both boxes can transform state-law claims into federal
`ones. Id. at 311–12. And the Supreme Court has identified only
`three. See Beneficial Nat’l Bank v. Anderson, 539 U.S. 1, 6–8,
`10–11 (2003) (ERISA, the National Bank Act, and the Labor-
`
`23
`
`

`

`Case: 21-2728 Document: 137 Page: 24 Date Filed: 08/17/2022
`
`Management Relations Act). Unsurprisingly, the companies
`cannot cite an applicable statute that passes this test.
`So instead, the oil companies try another tack. They suggest
`a new form of complete preemption, one that relies not on stat-
`utes but federal common law. Rather than limiting ourselves to
`three federal statutes, they say, we should just ask if our con-
`stitutional system “permit[s] the controversy to be resolved un-
`der state law.” Oil Cos. Br. 29 (Hoboken) (quoting Tex. Indus.,
`Inc. v. Radcliff Materials, Inc., 451 U.S. 630, 641 (1981)). Oth-
`erwise, states could brush off national interests and upend the
`federal system. But this theory has a fatal flaw: the lynchpin
`case that the oil companies cite is about garden-variety
`preemption, not the complete preemption they need. See Tex.
`Indus., 451 U.S. at 641.
`Undeterred, the oil companies argue that only federal com-
`mon law can resolve far-reaching climate-change suits. In sup-
`port, they point to a recent decision holding that a climate-
`change suit had to be decided under federal, not state, law. See
`City of New York v. Chevron Corp., 993 F.3d 81, 90–93 (2d
`Cir. 2021). But that case involved another ordinary-preemption
`defense to a case first filed in federal court. Id. at 94. It did not
`even try to check the boxes needed for complete preemption.
`Nor did it suggest another way to get there. See id. at 93–94
`(acknowledging that its preemption analysis might not satisfy
`the “heightened standard unique to the removability inquiry”).
`Next, the companies cite two circuit cases that relabeled
`state-common-law claims as federal. See Sam L. Majors Jew-
`elers v. ABX, Inc., 117 F.3d 922, 924, 926–29 (5th Cir. 1997);
`New SD, Inc. v. Rockwell Int’l Corp., 79 F.3d 953, 955 (9th
`
`24
`
`

`

`Case: 21-2728 Document: 137 Page: 25 Date Filed: 08/17/2022
`
`Cir. 1996). Neither explains what gives federal courts the au-
`thority to refashion state-common-law claims as federal. Be-
`sides, most courts recognize that these cases are not good law.
`See, e.g., Earth Island Inst. v. Crystal Geyser Water Co., 521
`F. Supp. 3d 863, 874–76 (N.D. Cal. 2021) (noting New SD’s
`unique facts and doubting its continued viability); Del. App. 37
`n.9 (collecting cases declining to follow Sam L. Majors). We
`will not follow those outliers.
`Finally, the companies cite a Supreme Court footnote’s hint
`that federal courts have broad power to “determine whether the
`real nature of [a] claim is federal.” Federated Dep’t Stores, Inc.
`v. Moitie, 452 U.S. 394, 397 n.2 (1981) (internal quotation
`marks omitted). But the Court later walked that suggestion
`back. Recognizing the “considerable confusion” caused by
`“Moitie’s enigmatic footnote,” the Court later cabined it to its
`“case-specific context.” Rivet v. Regions Bank of La., 522 U.S.
`470, 477–78 (1998) (internal quotation marks omitted). The
`footnote did not change “the rule” that “a federal defense,” like
`ordinary preemption, does not justify removal. Id. at 478.
`But the oil companies’ biggest problem is that our prece-
`dent already forecloses their test. We have said that “the two-
`part test for complete preemption” is “the only basis for rechar-
`acterizing a state law claim as a federal claim removable to
`[federal] court.” Goepel, 36 F.3d at 312 (emphasis added). So
`because the oil companies have no statute, they have no re-
`moval jurisdiction either.
`
`25
`
`

`

`Case: 21-2728 Document: 137 Page: 26 Date Filed: 08/17/2022
`
`B. Nor do they raise a substantial federal question
`The state tort claims may not be federal, the oil companies
`say, but at least they raise “substantial, disputed federal ques-
`tions.” Oil Cos. Br. 31 (Hoboken) (citing Grable, 545 U.S. at
`313–14); Oil Cos. Br. 30 (Del.) (same). And when state claims
`require resolving substantial federal issues, federal courts can
`hear them. Gunn v. Minton, 568 U.S. 251, 258 (2013). But nei-
`ther of the federal issues the oil companies identify justifies
`federal jurisdiction here.
`First, the companies rehash their common-law preemption
`argument. Because emissions claims “arise in an area governed
`exclusively by federal law,” they argue, every “element[] of
`these claims [is] necessarily federal.” Oil Cos. Br. 31 (Del.)
`(emphasis omitted); see also Oil Cos. Br. 31 (Hoboken)
`(same).
`But this is the same wolf in a different sheep’s clothing. The
`federal issue that the oil companies identify is whether federal
`common law governs these claims. Yet as we have said, there
`is no complete preemption here. And ordinary preemption is a
`defense. Defenses are not the kinds of substantial federal ques-
`tions that support federal jurisdiction. Metro Life Ins. Co. v.
`Taylor, 481 U.S. 58, 63 (1987).
`Contrast this argument with the two key cases defining
`what federal questions are substantial and disputed. In each, to
`prove some element of a state-law claim, the plaintiff had to
`win on an issue of federal law. In Grable, an “essential element
`of [Grable’s state] quiet title claim” required it to prove that the
`IRS had not “give[n] it adequate notice, as defined by federal
`
`26
`
`

`

`Case: 21-2728 Document: 137 Page: 27 Date Filed: 08/17/2022
`
`law.” 545 U.S. at 314–15. And in Gunn, to show legal malprac-
`tice, Gunn had to prove that if his lawyers had been competent,
`“he would have prevailed in his federal patent infringement
`case.” 568 U.S. at 259.
`Finally, the oil companies raise First Amendment prob-
`lems. They stress that these suits charge them with misrepre-
`senting “matters of public concern” about climate change. Oil
`Cos. Br. 33 (Hoboken); Oil Cos. Br. 33 (Del.). But though the
`First Amendment limits state laws that touch speech, those lim-
`its do not extend federal jurisdiction to every such claim. State
`courts routinely hear libel, slander, and misrepresentation cases
`involving matters of public concern. The claims here arise un-
`der state law, and their elements do not require resolving sub-
`stantial, disputed federal questions.
`III. THESE CLAIMS ARE TOO FAR REMOVED FROM
`OIL PRODUCTION ON THE OUTER CONTINENTAL SHELF
`The oil companies fall back on statutes that let federal
`courts hear state-law claims on special subjects. Here, they cite
`a law that lets federal courts hear cases
`arising out of, or in connection with (A) any op-
`eration conducted on the outer Continental Shelf
`which involves exploration, development, or
`production of the minerals, of the subsoil and
`seabed of the outer Continental Shelf, or which
`involves rights to such minerals….
`43 U.S.C. § 1349(b)(1).
`
`27
`
`

`

`Case: 21-2728 Document: 137 Page: 28 Date Filed: 08/17/2022
`
`The companies stress that a sizable chunk of oil comes from
`the Shelf. See Oil Cos. Br. 60 (Hoboken) (one-third of U.S.-
`produced oil); Oral Arg. 39:04–20 (1–5% of global oil). So,
`they say, the Shelf Act lets us hear these cases. To weigh this
`argument, we must figure out what the Shelf Act means and
`how it applies.
`A. For jurisdiction, the Shelf Act requires a close link
`to operations on the Shelf
`1. Oil production on the Shelf need not cause the suit. Start
`with the text. The parties (and other circuits) dispute what it
`takes for a suit to be “in connection with” shelf operations. Ho-
`boken and Delaware argue that this phrase limits jurisdiction
`to cases where oil production is a but-for cause of the tort or
`the like. The Fourth, Fifth, and Tenth Circuits agree. See
`Mayor & City Council of Balt., 31 F.4th at 220; In re Deep-
`water Horizon, 745 F.3d 157, 163 (5th Cir. 2014); Bd. of Cnty.
`Comm’rs of Boulder Cnty., 25 F.4th at 1272–75.
`But that reading is too cramped. “Connection” reaches be-
`yond causation. It means a “causal or logical relation or se-
`quence.” Connection (def. 1a), Webster’s Ninth New Colle-
`giate Dictionary (1988) (emphasis added); accord Connexion
`(def. 3), Oxford English Dictionary (2d ed. 1989) (“a bond of
`interdependence, causality, logical sequence, coherence, or the
`like”). Legos, puzzle pieces, and train cars connect, though
`they do not cause one another. And as statisticians stress, a cor-
`relation or connection does not imply causation.
`The structure of the provision confirms this reading. The
`jurisdictional phrase covers both suits “arising out of”
`
`28
`
`

`

`Case: 21-2728 Document: 137 Page: 29 Date Filed: 08/17/2022
`
`production on the Shelf and those “in connection with” it. 43
`U.S.C. § 1349(b)(1). The most natural reading is that the aris-
`ing-out-of language “asks about causation; but” the in-connec-
`tion-with wording “contemplates that some relationships will
`support jurisdiction without a causal showing.” Ford Motor
`Co. v. Mont. Eighth Jud. Dist. Ct., 141 S. Ct. 1017, 1026 (2021)
`(interpreting similar language from a judicial rule requiring
`that specific personal jurisdiction “arise out of or relate to” the
`disputed conduct (internal quotation marks omitted)). Reading
`the second half to require causation would make it redundant
`with the first half. See Yates v. United States, 574 U.S. 528,
`543 (2015) (canon against surplusage).
`Though we depart from some circuits’ approaches, other
`precedent supports our reasoning. Indeed, at least the Ninth
`Circuit reads the Shelf Act not to require but-for causation. San
`Mateo, 32 F.4th at 754. Plus, courts have read similar connec-
`tion language in different statutes or rules to cover more than
`just but-for causes. See, e.g., Maracich v. Spears, 570 U.S. 48,
`59 (2013) (Privacy Act); United States v. Loney, 219 F.3d 281,
`284 (3d Cir. 2000) (Sentencing Guidelines). “[I]n connection
`with” is “broad.” Mont v. United States, 139 S. Ct. 1826, 1832
`(2019) (interpreting that language in another statute). So we
`read it broadly.
`2. A suit must be linked closely to production or develop-
`ment on the Shelf. But however broad, the statute must stop
`somewhere. See id. (recognizing that “in connection with”
`must have “outer bounds”). Otherwise, “connections, like rela-
`tions, stop nowhere.” Maracich, 570 U.S. at 59 (internal quo-
`tation marks omitted). Applied loosely, the statute could sweep
`
`29
`
`

`

`Case: 21-2728 Document: 137 Page: 30 Date Filed: 08/17/2022
`
`in many routine state-law claims. Fender benders might be

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