KANSAS CITY, Kansas -- A federal court in Kansas City, Kansas, will oversee dozens of lawsuits filed across the country claiming oil companies have knowingly overcharged customers when gas station fuel temperatures rise, said the Associated Press.
The Judicial Panel on Multidistrict Litigation this week ruled that the "hot fuel" cases would be centralized in the U.S. District Court in Kansas City rather than tried in separate courts. Centralizing cases is considered a way to make the process more efficient for both sides and avoids district courts duplicating [image-nocss] and possibly contradicting each other's actions.
It also would streamline the process of deciding whether to certify the cases as class-action lawsuits, which could demand billions of dollars in damages or key changes in how gasoline retailers operate.
In its ruling Monday, the panel said it looked for a judge who had the time and experience to deal with what could turn out to be a mammoth case involving hundreds of plaintiffs and scores of oil company defendants.
"No district stands out as a geographic focal point for this nationwide docket.... Accordingly, we select the District of Kansaswhich is relatively conveniently located for many parties and witnessesas transferee district for this litigation," the panel wrote, according to AP.
The cases will be overseen by U.S. District Judge Kathryn Vratil, who was appointed to the federal bench in 1992 by President George H.W. Bush. Vratil is a member of the panel, but did not take part in the decision to transfer the cases.
The lawsuits center around the oil industry's century-old practice of pricing gasoline on a standard of 60 degrees. As temperatures rise during warmer months, the gasoline expands, meaning customers get less energy per gallon.
Because few pumps adjust the dispensing of fuel according to temperature, gasoline is an average of about five degrees warmer than the federal standard, said AP, citing a study analyzed by Dick Suiter of the National Institute of Standards & Technology (NIST).
The U.S. House Subcommittee on Domestic Policy, which has held hearings on the issue, estimates temperature changes could cost consumers $1.5 billion at the pump during the summer and is considering legislation that would force oil companies to install pumps that adjust for temperature changes.
Gasoline retailers have asked Congress to wait for additional studies, claiming that forcing them to install new pumps would be too expensive.
Trial lawyers have jumped on the issue, filing dozens of federal lawsuits claiming retailers are using temperature changes to rip off consumers. The panel identified 12 cases in Missouri, Kansas, Oklahoma, California, Kentucky, New Jersey and Tennessee that are seeking class-action status, as well as 25 potential "tagalong" cases. They name more than 100 defendants, including oil companies, distributors and retailers. A similar lawsuit filed recently in federal district court in Georgia claims that distributors have been "unjustly enriched" by tens of millions of dollars.
While all the plaintiffs and most of the defendants agreed with centralizing the cases, two defendantsSunoco Inc. and Getty Petroleum Marketing Inc.objected, the panel said. Even those in favor of centralizing the cases couldn't agree on a site, with lawyers proposing district courts across the country.
Vratil has not yet scheduled any hearings on the case.
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