Ninth Circuit to Decide Federal Venue in California v. ExxonMobil Plastics Case
The Ninth Circuit is weighing if California’s plastics suit against ExxonMobil belongs in federal court.
Why it matters: The outcome may influence future litigation strategy in environmental lawsuits by clarifying when state-filed claims against corporations can be removed to federal court. This affects how in-house counsel, law firms, and policy teams navigate jurisdiction in high-stakes cases.
- ExxonMobil seeks to move California’s plastics lawsuit to federal court, citing alleged injuries on navigable waterways.
- California disputes federal admiralty jurisdiction, saying water pollution is a minor part of the claims.
- The panel heard arguments on May 18, 2026, with no ruling yet.
- The case stems from allegations ExxonMobil misled the public about plastic recyclability.
The Ninth Circuit is considering whether California’s high-profile lawsuit against ExxonMobil and other petrochemical firms over plastics pollution can proceed in federal court or must return to state court. At issue: whether injury to navigable waterways triggers federal admiralty jurisdiction, or if California’s claims mainly belong in state law.
- During oral arguments on May 18, 2026, ExxonMobil’s counsel, Paul Clement, told the panel that "the alleged injury occurs on navigable waterways," a hallmark traditionally required for federal admiralty jurisdiction. Full report.
- California Attorney Mika Moore countered, "It's simply not the case that any claim that touches on water pollution automatically gives a basis for admiralty jurisdiction. Water pollution is really a small sliver of the case."
- According to court discussion, the state’s complaint references alleged harm to commercial fisheries and obstruction of waterways in its first three counts, which ExxonMobil argues support federal jurisdiction.
- The suit, filed by California Attorney General Rob Bonta in September 2024, alleges ExxonMobil misrepresented the recyclability of its plastic products and seeks to hold the company liable under state consumer and environmental protection laws.
For legal departments and outside counsel, the panel’s decision could set a precedent for venue disputes in environmental litigation. If the court affirms federal jurisdiction, similar cases against corporations could follow this path, potentially shifting strategic planning for both defense and public enforcement teams.
By the numbers:
- 2024—California filed the plastics lawsuit in September.
- May 18, 2026—Date of oral arguments before the Ninth Circuit.
Yes, but: No timeline for the Ninth Circuit’s decision has been announced, which may delay strategic clarity for litigants.
What's next: A Ninth Circuit ruling is expected, which could clarify standards for federal versus state venue in future environmental litigation.