Gas and Electric Franchise Fee Litigation

Lisa Kragnes v. City of Des Moines,
Iowa, Polk County District Court Case No. CE 49273
(This notice is by order of the Court. The Court has not yet decided the merits of the case and is intended only as a summary of the case before the Court and your rights as a potential class member).

Your rights may be affected by a class action brought by Lisa Kragnes of Des Moines, Iowa, as representative, and pending against The City of Des Moines, Iowa (hereinafter "Defendant") in the Iowa District Court for Polk County. The suit claims that the Defendant violated Iowa law by imposing a gas and an electric franchise fee in excess of its actual cost of regulation thereby collecting an illegal tax. It seeks a declaration as to the proper amount of fee, an injunction on any future collections in accordance with the determination and a refund of all amounts paid in excess of the legal amount. The Defendant denies the allegations. MidAmerican's records indicate that you may be a member of the class, having paid gas and electric franchise fees in the time from July 27, 1999 and continuing through the conclusion of the litigation. This case is currently set for trial beginning October 27, 2008.

The purpose of this notice is to advise you that you may be a member of this class and may thereby be entitled to protection by an injunction prohibiting the Defendant from imposing any illegal portion of the fee and to a refund, if a refund is ordered.

Because of the nature of this class action there is no right to opt out. Any judgment entered, whether favorable or not, will be binding upon all members of the class. Plaintiff's attorney's fees and expenses will be paid out of any recovery in this case pursuant to a contract previously approved by the Court. In addition attorney's fees and expenses may be recovered from the Defendant if and as ordered by the Court. You may enter an appearance in this case either personally or by your own separate counsel. You can obtain further information on this litigation by reviewing the Court file at the Polk County Courthouse, 5th & Mulberry, Des Moines, Iowa or by writing to attorneys, Brad Schroeder and Bruce H Stoltze at P.O. Box 93715, Des Moines, Iowa 50393.

All significant pleadings filed with or Orders entered by the Court will be posted on this website for class members to access and review.

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