Global Warming Alert: United States Supreme Court Issues Ruling in Connecticut v. American Electric Power Company, Inc.
In a much anticipated ruling, the United States Supreme Court decided today that federal common law claims seeking abatement of greenhouse gas emissions by utility companies must be dismissed. Reversing the Second Circuit, the Court held that the Clean Air Act displaces any federal common law right to seek abatement of carbon dioxide emissions. Significantly, the Court left open the question of whether nuisance and other state law claims against emitters of greenhouse gases may proceed. Connecticut v. American Electric Power Company, Inc., No. 10-174 (U.S. June 20, 2011). For insurers, this means that the question of whether their policyholders will be the subject of tort suits in federal court because the policyholder emitted greenhouse gases remains unresolved.