Justice Alito reverses course and recuses from major climate deception case over oil stock scrutiny

Supreme Court Justice Samuel Alito recused himself on Monday from a major climate case involving Suncor Energy and ExxonMobil, reversing months of resistance to calls tied to his oil stock holdings.

Alito had previously resisted calls to step aside. In May, a Supreme Court spokeswoman told NBC News that he would not recuse, saying he did not have a financial interest in any party and that the court’s legal counsel had advised his recusal was not required. The reversal sets up the possibility of a 4-4 split ruling, which would leave the lower-court decision in place. The case is set to be argued Oct. 5.

The case at issue

The lawsuit was filed by local officials in Boulder, Colorado, against Suncor Energy and ExxonMobil, alleging the companies deceived the public about how fossil fuels contribute to climate change. The companies argue that state courts are not the right place to deal with the global issue of climate change. The Supreme Court agreed to hear the appeal in February. The case is known as Suncor Energy (USA) Inc. v. County Commissioners of Boulder County. A trial court denied a motion to dismiss filed by Suncor and Exxon, and the Colorado Supreme Court affirmed that ruling, allowing the suit to head toward trial. Billions of dollars in damages could be at stake. It is one of dozens of similar climate deception cases.

The stock question and the reversal

Alito does not own stock in Suncor or ExxonMobil but holds stock in other oil and gas companies, including ConocoPhillips and Phillips 66, according to his disclosures. Environmental and advocacy groups, including Consumer Watchdog, called for recusal, arguing his holdings mean he could indirectly benefit from a decision in the industry’s favor. The court’s recently adopted code of ethics says a justice should step aside if they or their families have a “subject matter or controversy.” The recusal letter from clerk Scott Harris stated that Alito determined he would not continue to participate in the case but did not specify a reason. In 2023, Alito also did not participate in the court’s decision not to consider jurisdictional questions raised by the companies in the same case.

The appeal is backed by the Trump administration. Alito is one of the court’s six conservative justices. If the court rules against the oil companies, the case would proceed toward trial. “Justice Alito’s recusal from Suncor v Boulder is the right decision, and one he should have made from the start,” said Alexandra Nagy, organizing director of Consumer Watchdog.

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