Recently, two cases were dismissed that sought to hold industrial companies and automakers liable for greenhouse gas emissions and their consequences on global warming. A federal judge on Aug. 30 rejected Mississippi residents' claims that coal, oil and chemical companies were liable for greenhouse gas emissions, which allegedly led to an increase in powerful hurricanes in the region, including Hurricane Katrina. In September, a California federal judge dismissed a suit brought by the State of California seeking to hold six automobile makers liable for global warming damages caused by greenhouse gas emissions from motor vehicles.
On another note, Vermont can set emission standards for new cars, according to a federal judge. On Sept. 12, a Vermont federal judge ruled that Vermont can set greenhouse gas emission standards for new cars, holding that the state’s laws are not preempted by federal fuel economy laws or by U.S. foreign policy.
While liability and regulation for climate change shake out in federal forums, insurers remain vigilant about the extent of their duties to property owners and business affected by catastrophic weather. An article in the March 2007 issue of Mealey's Litigation Report: Catastrophic Loss discusses what types of claims can crop up and suggests that policyholders should be aware of the limits of insurance coverage.