Office of the Attorney General
Attorney General Stumbo Seeks Return of Price Gouging Suit to State Court and Dismissal of Marathon’s Federal Case

Press Release Date:  Friday, May 18, 2007  
Contact Information:  Vicki Glass, 502-696-5643 Office  

Attorney General Greg Stumbo today asked a federal judge to send his $89 million gas price gouging lawsuit back to Franklin Circuit Court. The Attorney General argues that the defendant, Marathon Oil Corporation, 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 Attorney General Stumbo.  “Protecting citizens from profiteering is our goal.”

The Attorney General asks the federal judge to impose costs and attorney fees on Marathon for wrongly seeking federal court intervention.

The Attorney General also filed a motion to dismiss Marathon’s federal lawsuit challenging the constitutionality of Kentucky’s price-gouging statute.  Stumbo points 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 Attorney General Stumbo.  “Because the state court action came first, it should take precedence.”

The Attorney General’s 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 Attorney General Stumbo.

No date has yet been set for a hearing on the motions.

Motion to Dismiss (912kb PDF)

Motion to Remand (422kb PDF)