California sues carmakers re Global Warming

California sues carmakers
Sep 20, 6:34 PM (ET)
By Michael Kahn
SAN FRANCISCO (Reuters)

California sued six of the world's largest automakers over global warming on Wednesday, charging that greenhouse gases from their vehicles have caused billions of dollars in damages.

The lawsuit is the first of its kind to seek to hold manufacturers liable for the damages caused by their vehicles' emissions, state Attorney General Bill Lockyer said.

It comes less than a month after California lawmakers adopted the nation's first global warming law mandating a cut in greenhouse gas emissions.

California has also targeted the auto industry with first-in-the-nation rules adopted in 2004 requiring carmakers to force cuts in tailpipe emissions from cars and trucks.

Automakers, however, have so far blocked those rules with their own legal action -- prompting one analyst to say California's lawsuit represents a way for California to pressure car manufacturers to accept the rules.

"That's the objective," said David Cole, chairman of the Center for Automotive Research, a nonprofit organization that provides public research and forecasts about the industry. "They want to get the automakers basically to bow down and pay homage to the (emissions) law."

The complaint, which an auto industry trade group called a "nuisance" suit, names General Motors Corp., Ford Motor Co., Toyota Motor Corp., the U.S. arm of Germany's DaimlerChrysler AG and the North American units of Japan's Honda Motor Co. and Nissan Motor Co. Ltd..

Lockyer told Reuters he would seek "tens or hundreds of millions of dollars" from the automakers in the lawsuit filed in U.S. District Court in Northern California.

Environmental groups hailed the lawsuit, saying it represented another weapon for the state as it seeks to curb greenhouse gas emissions and spur the auto industry to build vehicles that pollute less.

"(California) just passed a new law to cut global warming emissions by 25 percent and that's a good start and this lawsuit is a good next step," said Dan Becker, director of the Sierra Club's Global Warming Program.

Ford deferred comment to the Alliance of Automobile Manufacturers, which said the lawsuit was similar to one a New York court dismissed that is now on appeal.

"Automakers will need time to review this legal complaint, however, a similar nuisance suit that was brought by attorneys- general against utilities was dismissed by a federal court in New York," the industry group said in a statement.

Toyota declined to comment as the company evaluates the lawsuit, while Honda said in a statement it was committed to developing environmentally responsible technology.

The other automakers had no immediate comment.

But Sean Hecht, executive director of the Environmental Law Center at the University of California, Los Angeles, said the lawsuit has a "reasonable" chance of succeeding.

He also noted the judge in the New York lawsuit cited rarely-used legal doctrine in ruling that the question at issue was political rather than legal and should therefore be addressed by the legislature and not the court.

"I was surprised that the court in that case did that," he said. "I think it is a straight forward legal question. My impression is this is a very legitimate case to bring."

The lawsuit seeks monetary damages for past and ongoing contributions to global warming and asks that the companies be held liable for future monetary damages to California.

It said California is spending millions to deal with reduced snow pack, beach erosion, ozone pollution and the impact on endangered animals and fish.

"The injuries have caused the people to suffer billions of dollars in damages, including millions of dollars of funds expended to determine the extent, location and nature of future harm and to prepare for and mitigate those harms, and billions of dollars of current harm to the value of flood control infrastructure and natural resources," it said.

The Center for Automotive Research's Cole said it would be tough for the industry to immediately meet demands from some critics and predicted other states would quickly follow suit should California succeed with the legal action.

Adoption of diesel engine emissions technology or gasoline- electric hybrids comes at great cost and improving gas mileage also likely means smaller lighter vehicles, trade-offs that are not attractive to consumers, he added.

"These are not free technologies, they are very expensive," Cole said. "Most people are price sensitive."

In the complaint, Lockyer charges that vehicle emissions have contributed significantly to global warming and have harmed the resources, infrastructure and environmental health of the most populous state in the United States.

Lockyer -- a Democratic candidate for state treasurer in the November election -- said the lawsuit states that under federal and state common law the automakers have created a public nuisance by producing "millions of vehicles that collectively emit massive quantities of carbon dioxide."

Carbon dioxide emissions and other greenhouse gases have been linked to global warming.