Federal judge tosses Nessel suit accusing fossil fuel industry of anti-trust violations

Earlier this year, Michigan Attorney General Dana Nessel joined a number of states across the country in taking legal action against the fossil fuel industry when she filed a suit against four of the world’s energy companies and a major oil lobbying group accusing them of violating state and federal anti-trust laws to discourage competition from renewable energy. 

However, a U.S. District Court judge on Tuesday determined Nessel lacks the standing to pursue federal anti-trust claims, granting in-part a motion to dismiss the case.

In the suit filed on behalf of the state of Michigan, attorneys for the state alleged that BP, Chevron, Exxon Mobil, Shell and the American Petroleum Institute had violated the Sherman Antitrust Act, the Clayton Antitrust Act and the Michigan Antitrust Reform Act. 

The suit argues the defendants had conspired with each other for decades to preemptively limit competition from renewable energy in order to maintain dominance over the energy market, resulting in harm to Michigan residents through overpriced energy, a lack of energy options on the market and increased costs to implement measures to counter the negative effects of fossil fuel use.

In her order, Judge Jane M. Beckering of the U.S. District Court for the Western District of Michigan determined that even if Michigan had adequately pleaded a conspiracy, “the antitrust laws protect against none of the injuries for which Michigan seeks a remedy, except for overcharges for energy.”

Beckering wrote that the state had plausibly alleged that the fossil fuel companies stifled innovation in and adoption of renewable energies, but ultimately determined that the state failed to show proximate cause proving that this conspiracy led to higher costs for Michigan residents.

“This decision adds to the growing list of federal and state courts that have dismissed climate lawsuits,” Chevron’s attorney, Theodore J. Boutrous Jr., said in a statement. “These climate suits are baseless no matter plaintiffs’ attempts to concoct new litigation theories, like these meritless antitrust claims.”

In a statement to Michigan Advance, Nessel Press Secretary Danny Wimmer noted the attorney general’s disagreement with the decision.

“Our office is reviewing the opinion in full and considering our options.” Wimmer said.