FRANKFORT, Ky. -- Marathon Petroleum Co. has amended its lawsuit challenging Kentucky's gasoline price-gouging law to remove Governor Ernie Fletcher as a defendant, the Lexington Herald-Leader said. Stumbo remains as a defendant in the suit.
Marathon filed the suit May 10, after Attorney General Greg Stumbo filed a lawsuit claiming that Marathon Oil Corp. and subsidiaries Marathon Petroleum Co. LLC and Speedway SuperAmerica LLC overcharged Kentucky motorists more than $89 million in the aftermath of Hurricane Katrina in 2005. The company denied the accusation [image-nocss] and filed a suit in federal court in Frankfort, Ky., challenging the constitutionality of the law on which Stumbo based his lawsuit, and his interpretation of it.
"Concerning removal of the governor from the complaint, while we do not believe there was any conflict of interest associated with our outside counsel, we chose to drop the governor from the lawsuit to eliminate anyappearance of a conflict," Marathon spokesperson Angelia Graves told CSP Daily News. "The attorney general did not name the governor in his lawsuit either."
Click here for Marathon's response to the gouging allegations.
Meanwhile, Kentucky Attorney General Greg Stumbo has asked a federal judge to send his $89 million gasoline price gouging lawsuit back to the state's Franklin Circuit Court. The AG argues that the defendant, Marathon Oil, improperly removed the action to federal court.
This lawsuit is filed on behalf of the Commonwealth of Kentucky and should be heard in state court, said Stumbo. He asked the federal judge to impose costs and attorney fees on Marathon for wrongly seeking federal court intervention.
The AG also filed a motion to dismiss Marathon's federal lawsuit challenging the constitutionality of Kentucky's price-gouging statute. He pointed out that the federal suit was filed less that two hours after he sued Marathon for price gouging. If this was a race to the courthouse, Marathon lost, said Stumbo. Because the state court action came first, it should take precedence.
The motion to dismiss relies on the strong federal policy against interference with pending state judicial proceedings. It argues that Kentucky state courts have an overwhelming interest in protecting citizens from unfair and unscrupulous corporate business practices.
We look forward to putting the evidence of price gouging in front of a jury, said Stumbo.
Marathon spokesperson Graves said, "We believe that we have the right to be heard infederal courtwhen federal constitutional issuesare involved."
No date has yet been set for a hearing on the motions.
Click here to view the motion to dismiss.
Click here to view the motion to remand.
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