Reorganized FLI v. Williams Companies
1f4th1214
10th Cir.2021Background
- In 2005 Farmland sued multiple defendants under the Kansas Restraint of Trade Act (KRTA), alleging a conspiracy that inflated natural-gas prices and seeking full-consideration damages under Kan. Stat. Ann. § 50-115 (repealed 2013) and treble damages under § 50-161(b).
- The case was removed to federal court, consolidated in an MDL, then returned to the District of Kansas; § 50-115 was repealed in 2013 but Farmland did not amend its complaint to remove the § 50-115 demand.
- In 2019 defendants moved for summary judgment, arguing the 2013 repeal should be given retroactive effect, extinguishing Farmland’s ability to recover (and thus leaving no viable claim).
- The district court denied summary judgment and certified an interlocutory question on whether the repeal of § 50-115 is retroactive under Kansas law; the case reached the Tenth Circuit under 28 U.S.C. § 1292(b).
- The Tenth Circuit held § 50-115 was a remedial provision and its repeal applies retroactively under Kansas law, but that Farmland retained other remedies (notably treble damages) and thus defendants were not entitled to summary judgment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Was § 50-115 substantive or remedial? | Farmland: repeal changes damages and should be treated as substantive. | Defendants: § 50-115 merely prescribed a remedy, not a cause of action. | Court: § 50-115 is remedial (it sets a measure of compensation, not the right). |
| Does the repeal of § 50-115 apply retroactively under Kansas law? | Farmland: repeal should apply prospectively to pending cases. | Defendants: repeal is retroactive, extinguishing the full-consideration remedy. | Court: repeal applies retroactively (remedial changes apply retroactively absent contrary intent or vested-rights problem). |
| Would retroactivity infringe vested rights / due process? | Farmland: retroactive repeal would deprive plaintiffs of an expected remedy and could be unjust. | Defendants: retroactivity does not abolish the substantive cause of action; treble damages remain. | Court: no vested-rights violation — retroactivity here does not abolish the cause of action or all remedies. |
| Has Farmland preserved alternative remedies (treble damages), so summary judgment is improper? | Farmland: amended complaint invoked § 50-161 and sought "other and further relief," preserving treble damages. | Defendants: Farmland failed to amend after repeal and cannot now seek treble damages; summary judgment warranted. | Court: complaint sufficiently preserved treble-damages remedy; summary judgment denied. |
Key Cases Cited
- Jones v. Garrett, 386 P.2d 194 (Kan. 1963) (distinguishing changes in remedy/procedure from changes in substantive rights)
- Foster v. Humburg, 299 P.2d 46 (Kan. 1956) (damage is part of remedy, not the cause of action)
- Kleibrink v. Mo.-Kan.-Tex. R.R. Co., 581 P.2d 372 (Kan. 1978) (statutory limits on wrongful-death recoveries are substantive and generally prospective)
- Owen Lumber Co. v. Chartrand, 73 P.3d 753 (Kan. 2003) (remedial statutes may be applied retrospectively unless vested rights are affected)
- Brennan v. Kan. Ins. Guar. Ass'n, 264 P.3d 102 (Kan. 2011) (framework for evaluating whether retroactive remedial changes impair vested rights)
- Norris v. Kan. Emp. Sec. Bd. of Review, 367 P.3d 1252 (Kan. 2016) (procedural changes applied retroactively can nonetheless be barred where they effectively extinguish pending claims)
- Landgraf v. USI Film Prods., 511 U.S. 244 (1994) (federal retroactivity principles; relied on for comparison but held not controlling for Kansas-law analysis)
