NAM GC Kelly Calls Lawsuits Against Energy Companies 'Misguided'
Although it's important to address climate change, said Linda Kelly, general counsel of the National Association of Manufacturers, lawsuits against energy companies around the issue aren't the answer.
January 11, 2018 at 05:45 PM
4 minute read
Lawsuits against oil companies, such as the suits that New York's mayor announced on Wednesday, are an absurd way to fight climate change while they waste resources that could be better spent on real solutions to environmental problems, according to Linda Kelly, general counsel of the National Association of Manufacturers.
That's why Kelly has made the news at least twice this week attacking what she sees as misguided litigation against energy producers, which are considered “manufacturers” and part of NAM. She spoke with Corporate Counsel Thursday about her strong criticism of the energy lawsuits in New York as well as ongoing suits filed by San Francisco and Oakland last September over climate change.
“We recognize the problem of climate change and think it is important to address it,” Kelly said. “But we also believe that we don't want to pick winners and losers in the energy field.” She said there should be efforts to work toward a solution, not to seek a scapegoat in the energy sector.
Kelly directs NAM's Center for Legal Action and leads its Manufacturers' Accountability Project, begun last November to hold key actors accountable when they take actions such as nuisance lawsuits that can harm manufacturers and their employees.
On Wednesday she took aim at New York Mayor Bill de Blasio's decision to sue five investor-owned fossil fuel companies that he said were “most responsible for global warming.” They are Exxon Mobil Corp., BP, ConocoPhillips Co., Royal Dutch Shell, and Chevron Corp.
Blaming climate change for Tropical Storm Sandy, which took 44 lives and caused $19 billion in devastation in New York, the mayor said he was seeking “billions of dollars in damages to protect us against extreme weather and rising seas.”
Kelly accused the mayor of playing politics. “Mayor de Blasio is just the latest mayor to lead his city into misguided litigation against America's energy manufacturers,” she said. “We've seen this activist playbook and these central players before, including plaintiff's attorney Matt Pawa.”
Matthew Pawa co-chairs the environmental group in the Boston office of Hagens Berman Sobol Shapiro, a class action litigation firm. “He shopped this cause of action around to state attorneys general and a number of municipalities,” Kelly said, using the same template against the same five energy companies.
“We've been trying to educate the public and others about what's behind all these lawsuits,” she explained. She said the damages sought are unrelated to fossil fuel production, and instead are designed to get companies to pay millions of dollars for infrastructure and for legal fees.
On Tuesday, Kelly also issued a statement condemning the California climate lawsuits, and praising a new petition filed by Exxon Mobil which claims to show the suits were filed in bad faith. The recent petition says the seven California municipalities failed to disclose in their municipal bond prospectuses the same climate-related risks as they detail in their lawsuits against energy manufacturers.
Kelly's statement said, “These seven California municipalities are taking energy manufacturers to court, blaming them for catastrophes they are sure will happen. But when it came time to secure money from investors, these cities failed to mention the certain risks they cite in their lawsuits.”
The statement went on, “Either the claims against energy manufacturers are frivolous, or the municipalities have made misleading, and perhaps fraudulent, statements to investors.”
Kelly said there is an ongoing effort by plaintiffs attorneys to expand the use of such suits to target others in the manufacturing sector. That's why her 2018 priorities include “continuing to push back on these lawsuits as they are filed, taking any opportunity to become involved in the suits themselves, as an amicus or as a party.”
She said NAM files 60 to 70 amicus briefs a year in state, federal and some international forums. And it has about 12 ongoing cases in which it is a party, either by itself or with other associations.
Another priority is fighting overregulation, which she said has a “tremendous impact” on manufacturers. “As the regulatory environment changes, we are shifting our focus from challenging regulations to being a defender of deregulation,” Kelly said.
She said she also expects “some of the pressure in the labor and environmental spaces to migrate to state legislatures and courts.”
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllLSU General Counsel Quits Amid Fracas Over First Amendment Rights of Law Professor
7 minute readExits Leave American Airlines, SiriusXM, Spotify Searching for New Legal Chiefs
2 minute readTrending Stories
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250