(The opinions expressed here are those of the author, a
columnist for Reuters.)
By Jenna Greene
July 23 (Reuters) - Plastic waste is ubiquitous - from
empty water bottles to grocery bags, the detritus litters
beaches, parks and roadways.
The question for a federal judge in San Francisco now is
whether Exxon Mobil ( XOM ) can be held liable for such pollution, or if
a novel suit claiming the company has created a public and
private nuisance should be dismissed.
A coalition of four environmental groups last year sued Exxon, a
leading producer of polymers used to make single-use plastics,
alleging the company wrongly led consumers in California to
believe that plastic was easily and safely disposed of, when in
reality, less than 5% of it is recycled in the United States.
A spokesperson for Exxon, which has denied wrongdoing, did not
respond to requests for comment, and the company's outside
counsel from O'Melveny & Myers declined comment for this column.
Exxon in court papers said the plaintiffs' theory that consumers
purchased more plastic based on statements by Exxon was "to put
it mildly, a real stretch."
During an hour-long oral argument last week over Exxon's
motion to dismiss, Chief U.S. District Judge Richard Seeborg
pushed lawyers on both sides to lay out the parameters of
nuisance law, while also hinting he might allow the claim to
move forward - but more on that later.
Nuisance, a centuries-old legal doctrine with its roots in
English common law, applies when a defendant's conduct
interferes with a public or private right to the enjoyment of
life or property. Classic examples include blocking a public
road or a factory that emits noxious odors.
In recent years, nuisance claims have also been successfully
invoked by state and local governments in litigation against
opioid makers for their role in the epidemic of addiction and
overdose deaths, netting close to $50 billion in payouts. Lead
paint manufacturers also settled nuisance claims in California
in 2019, agreeing to pay $305 million without admitting
wrongdoing.
Unlike personal injury claims, nuisance cases do not seek
damages to compensate plaintiffs for an injury. Instead, they
seek to make the party responsible for the nuisance pay to
abate, or fix, the condition.
The defense bar has called public nuisance a "
super tort
," complaining that such claims offer a way to sidestep the
more rigorous requirements to prevail in a product liability
lawsuit.
Here, the Sierra Club, Surfrider Foundation, Heal the Bay, and
San Francisco Baykeeper, which also allege violations of
California's unfair competition law, want abatement, injunctive
relief, compensatory damages and attorneys' fees, noting in a
press release that California taxpayers shell out an estimated
$420 million each year to clean up and prevent plastic
pollution.
Their case was brought in tandem with a similar action by
California Attorney General Rob Bonta. The AG's higher-profile
suit remains bogged down in a fight over venue after Seeborg
remanded it to San Francisco Superior Court. Exxon has appealed
that decision to the 9th U.S. Circuit Court of Appeals, where
the dispute remains pending.
In the meantime, the suit by the environmental groups has
proceeded in federal court, where Seeborg must now decide if it
can survive the motion to dismiss.
"What is the nuisance?" he asked plaintiffs lawyer Tyson
Redenbarger, a partner at Cotchett, Pitre & McCarthy. "Is it
that these items are plastic (and) plastics cause pollution? Or
is it that people acquire it thinking it's more recyclable than
it is?"
"It's a very broad claim," Seeborg added. "My problem is, is
it so broad that I can't really get my hands around?"
Redenbarger countered that the nuisance standard itself is
"quite broad," arguing that Exxon's "years-long campaign to tell
the public that plastic can be safely disposed of" led consumers
to buy more of it, and that unrecycled plastic waste winds up in
waterways or leaks chemicals into landfills.
Redenbarger and spokespeople for the environmental coalition
did not respond to requests for comment.
Last year, New York Attorney General Letitia James came up short
in a similar suit accusing PepsiCo of polluting the environment
with single-use plastic packaging. In dismissing the case, a New
York state court judge ruled it would run "contrary to every
norm of established jurisprudence" to punish PepsiCo, because it
was people, not the company, who ignored laws prohibiting
littering.
But Seeborg, who was appointed to the bench in 2009 by
President Barack Obama, offered some indication he might not be
so quick to toss the environmental groups' case - at least not
at this stage of the litigation.
When Exxon lawyer Dawn Sestito, a partner at O'Melveny,
argued that unlike in the lead paint case - where companies
allegedly touted the paint for interior use while knowing it was
toxic - it's hard here "to imagine that talking about plastics
as recyclable could be considered a promotion for hazardous
use," she said. Moreover, government entities also convey the
message that plastic is recyclable, she said.
Seeborg responded that the plaintiffs' "accusation is that
you knew it wasn't, and you're in the business of polymer
production," he said. "You may quite possibly prevail in terms
of undermining the nuisance claim, but we're at the posture
right now of just whether or not it can even go forward."
He added, "This case isn't about whether going into the
marketplace and saying 'Let's all recycle' is actionable.
They're claiming something very different."
A few minutes later, when Sestito took aim at what she
flagged as a basic disconnect in the plaintiffs' case - how is
it, she said, that stating "a product or plastics could be
recyclable results in more plastic ending up in oceans or
beaches or becoming pollution?" - Seeborg again shut her down.
"I don't want to beat the same drum over and over again, but
is that something that would need to be explained at this stage
of the litigation?" he said. "It ultimately may need to be
explained, but the question really is, have they articulated a
legal theory that can advance, if they proved everything."