SAN FRANCISCO, California — A California state appeals court has ruled that fuel producer Citgo Petroleum can remain a defendant in a sweeping climate-related lawsuit brought by several California cities and counties, reversing an earlier trial court decision that had dismissed the company from the case.
In a decision issued Jan. 5, a three-judge panel of the California First District Court of Appeal concluded that Citgo’s long-standing sale of gasoline and petroleum products in California was sufficient to subject the company to the jurisdiction of state courts, even if it did not directly market fuel to California consumers. The ruling reinstates claims brought by San Francisco, Oakland, and counties including San Mateo, Marin, and Santa Cruz.
The lawsuit alleges that Citgo and other major oil producers misled the public by failing to warn about the alleged climate impacts of fossil fuel use, contributing to environmental harms such as wildfires, flooding, and sea-level rise. The appellate court said California has a strong interest in adjudicating claims tied to harms occurring within the state, noting Citgo sold branded fuel in California for roughly three decades.
The decision overturns a December 2024 ruling by a San Francisco Superior Court judge who found insufficient evidence that Citgo engaged in deceptive marketing. On appeal, the court disagreed, finding that fuel sales alone could support the claims at this stage.
The ruling marks another development in a broader national push by Democratic-led jurisdictions to pursue climate liability cases against oil companies. Defendants, including Exxon, Chevron, BP, and Shell, argue the lawsuits improperly seek to regulate national energy policy through state courts. The companies have signaled they may ultimately ask the U.S. Supreme Court to intervene.
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