The U.S. Supreme Court opens its new term this week with a case that could reshape how American communities try to hold the fossil fuel industry financially accountable for climate disasters. Justices are set to hear oral arguments Monday in Suncor Energy v. Board of County Commissioners of Boulder County, weighing whether Boulder County and the City of Boulder can proceed with a state-court lawsuit against ExxonMobil and Suncor Energy over climate-driven damages.

The case traces back to the 2021 Marshall Fire, one of Colorado's most destructive wildfires, which investigators and climate scientists have linked to the extreme drought and heat that a warming climate has made more likely in the region. Boulder argues the energy giants knowingly contributed to that warming while publicly downplaying the risks, and wants to hold them liable under state law for the resulting harm, according to a case summary from Earthjustice.

The Core Legal Question

The dispute isn't about whether climate change is real or whether Suncor and Exxon caused Boulder's wildfire specifically — it's narrower and, in some ways, more consequential: does federal law preempt states from hearing these kinds of claims at all, or can Colorado's courts proceed under its own tort law? The Colorado Sun reports the Colorado Supreme Court already ruled last year that federal law does not preempt Boulder's claims, teeing up the oil companies' appeal to the nation's highest court.

BOULDER SAYS WARMING-FUELED DISASTERS HAVE COST TAXPAYERS “IMMENSELY”

Boulder County attorney Kevin Russell of Russell & Woofter LLC is expected to argue the county's side when the court convenes at 10 a.m. Eastern, according to Boulder County's own announcement of the hearing. A ruling against the energy companies could open the door for a wave of similar municipal lawsuits nationwide; a ruling in their favor would likely shut most of them down before they reach a jury.

Stakes Beyond Boulder

Dozens of cities and counties across the country have filed similar suits against oil majors in recent years, arguing those companies should help cover the costs of seawalls, fire mitigation and storm recovery tied to a warming planet. CBS News notes the oil industry has pushed hard to get those cases moved out of state courts and into friendlier federal venues, or dismissed outright, making Monday's argument a bellwether for the entire litigation strategy on both sides.

A decision isn't expected for months, but Monday's argument — the first case of the new term — will offer the clearest signal yet of where a court that has grown more skeptical of sweeping climate litigation might be headed.