Climate Change Could Set Off Tempest of Litigation

As the Earth warms, so will the hearts of lawyers ready to soak up fees from climate change lawsuits. Attorneys William F. Stewart and Peter J. Fontaine of the Philadelphia firm of Cozen O'Connor  have authored a white paper outlining the business risks of climate change. The authors focus on four types of complaints likely to emitted from attorney offices:

1.  Professional liability:  claims against professionals who should have known better, such as "an architect or engineer who fails to account for increased storm surge on a coastal development project, a broker who is unfamiliar with new climate change insurance products, or a lawyer or consultant advising an energy company who is unaware of the likely impacts of cap and trade legislation."
2.  Director/Officer Liability: actions against company leaders who fail to substantial disclose risks
3.  Insurance coverage: claimants will want their insurance to pay for climate-related damage, which today isn't covered, while insurance companies may ask for exceptions
4.  Cap and Trade: disputes with regulators over obligations and the assessment and selling of carbon credits and offsets.

 The authors also give the insurance industry credit for acting before business by taking steps to both mitigate and adapt to climate change. Insurers have participated in several groups such as CERES, Combat Climate Change, and ClimateWise in calling for climate action. They are spurring the rest of the business community into action by figuring climate change into their underwriting by raising premiums in risky locations.

Climate change will surely cause a lot of pain and disruption in the business community. While lawyer's tasks become more complicated as they must understand new regulations and environmental science, their phones will be ringing even more.