Justia Kansas Supreme Court Opinion Summaries

Eight rural electric cooperatives (RECs) sought judicial review after the Kansas Board of Tax Appeals (BOTA) denied their property valuation challenges for the 2019 and 2020 tax years. The RECs argued that the valuation methodology used by the Kansas Department of Revenue's Property Valuation Division (PVD) violated the requirement for "generally accepted appraisal procedures" under K.S.A. 79-5a04. The RECs elected to go to district court for a trial de novo, which allows for an evidentiary hearing where issues of law and fact are determined anew.The Shawnee County District Court agreed with the RECs, concluding that PVD's valuation methodology violated K.S.A. 79-5a04. The court found that the methodology resulted in non-uniform and unequal valuations of the RECs' properties, thus inflating their property values and taxes. The district court ordered PVD to adjust its methodology to account for the RECs' treatment of margin stabilization adjustments (MSAs) in their net operating income (NOI).On appeal, the Kansas Supreme Court reviewed whether the district court exceeded its scope of judicial review by considering issues not raised before BOTA. The Supreme Court held that a trial de novo under K.S.A. 2023 Supp. 74-2426(c)(4)(B) does not expand a district court's scope of judicial review beyond what is permitted by K.S.A. 77-617. The court determined that the RECs had only raised a constitutional issue regarding uniform and equal taxation before BOTA, not a statutory compliance issue under K.S.A. 79-5a04. Therefore, the district court exceeded its scope of review by deciding on the statutory issue.The Kansas Supreme Court reversed the district court's judgment, holding that the district court improperly expanded its scope of review by addressing the statutory compliance issue that was not litigated before BOTA. View "FreeState Electric Cooperative, Inc. v. Kansas Dept. of Revenue" on Justia Law

Robert William Doelz was convicted of possession of methamphetamine with intent to distribute. In 2019, the Kansas Supreme Court reversed his conviction, finding that his Fourth Amendment rights were violated due to a warrantless search, and the evidence obtained should have been suppressed. On remand, the State dropped the charge and did not pursue a retrial. Subsequently, Doelz sought compensation for his wrongful conviction under K.S.A. 2020 Supp. 60-5004, which requires proving actual innocence among other criteria.The Shawnee District Court denied both parties' motions for summary judgment, interpreting K.S.A. 2023 Supp. 60-5004(c)(1)(C) to require a claimant to prove that their innocence resulted in the reversal of their conviction, dismissal of charges, or a not guilty verdict upon retrial. The court found that Doelz's conviction was reversed due to a Fourth Amendment violation, not because he did not commit the crime. Since there was no evidence explaining why the charges were dismissed, a material fact remained unresolved. At a bench trial, Doelz testified to his innocence, but the court granted the State's motion for judgment as a matter of law, finding that Doelz failed to prove the charges were dismissed due to his innocence.The Kansas Supreme Court affirmed the district court's decision. The court held that K.S.A. 2023 Supp. 60-5004(c)(1)(C) requires a claimant to prove actual innocence and that this innocence led to the reversal, dismissal, or acquittal. The court found that the legislative intent behind the statute was to compensate only those who are factually innocent. Since Doelz did not provide evidence that the charges were dismissed because of his innocence, he did not meet the statutory requirements for compensation. View "In the Matter of the Wrongful Conviction of Doelz" on Justia Law

Shana L. Jarmer was arrested for driving under the influence (DUI) after failing a breath alcohol test. At the time of the arrest, Jarmer was in the driver's seat of a vehicle stuck in a muddy ditch. Despite her efforts to move the vehicle, it remained stationary due to the muddy conditions. Following her arrest, Jarmer was notified that her driving privileges would be suspended by the Kansas Department of Revenue (KDR) under K.S.A. 2020 Supp. 8-1014. Jarmer challenged the suspension, arguing that she was merely attempting to operate the vehicle, not actually operating it, as the vehicle was not moving.The KDR upheld the suspension, finding that Jarmer was operating the vehicle. Jarmer sought judicial review of this decision in Sumner County District Court, which denied her petition, agreeing with the KDR that Jarmer was operating the vehicle since the engine was running, she was behind the wheel, and the tires were spinning. On appeal, the Kansas Court of Appeals affirmed the district court's decision, concluding that Jarmer operated the vehicle because she caused it to function or work when she engaged the transmission and pressed the gas pedal.The Supreme Court of the State of Kansas reversed the decisions of the lower courts. The Supreme Court held that to "operate" a vehicle means to "drive" it, which requires motion on the part of the vehicle. The court found that while Jarmer unquestionably attempted to operate the vehicle, her car did not move, despite her best efforts. Therefore, it was factually impossible for Jarmer to "move"—and, under the court's precedent, "operate"—the vehicle. The court concluded that Jarmer's unsuccessful effort to drive her car out of a muddy ditch fails to satisfy K.S.A. 8-1002(a)(2)(A)'s requirement that she was "operating a vehicle while under the influence of alcohol or drugs, or both." The court reversed the suspension of Jarmer's driver's license and remanded the matter to the KDR for further proceedings. View "Jarmer v. Kansas Dept. of Revenue" on Justia Law

The Supreme Court dismissed this case involving permits issued in 2017 and 2018 by the Kansas Department of Health and Environment (KDHE) to four different swine confined animal feeding operations (CAFOs), holding that current circumstances rendered moot the legal challenges brought by Sierra Club.In 2017, Husky Hogs LLC formulated a plan to rebuild and expand its CAFO. As part of the plan, the rebuild planners formed Prairie Dog Pork, LLC, which was granted a portion of Husky Hogs' property. Thereafter, KDHE granted each LLC a permit. Subsequently, the same group of landowners created two additional LLCs to further their growing capacities and were given permits from KDHE. Sierra Club brought this lawsuit alleging that the permits issued to the four CAFOs violated the surface water setback requirements of Kan. Stat. Ann. 65-1,180. The district court held that the permits were unlawful. The CAFOs appealed, and while the appeal was pending KDHE issued four new permits to the CAFOs reflecting new legal descriptions of the four facilities. The court of appeals remanded the case with directions to reinstate the 2017 and 2018 permits, which were no longer operational. The Supreme Court dismissed the case, holding that there was no longer any actual controversy concerning the 2017 and 2018 permits. View "Sierra Club v. Stanek" on Justia Law

The Supreme Court affirmed the judgments of the court of appeals and district court affirming the decision of the Kansas Department of Revenue (KDOR) to suspend Appellant's driving privileges, holding that, contrary to Appellant's arguments on appeal, the KDOR had subject matter jurisdiction to act.On appeal, Appellant argued that the KDOR lacked subject matter jurisdiction to suspend his driving privileges because the law enforcement officer who pulled him over made a mistake in entering the date on his officer's certification and notice of suspension form (DC-27). The court of appeals disagreed and sided with out cases that "refused to treat strict compliance with Kan. Stat. Ann. 8-1002 as jurisdictional." The Supreme Court affirmed, holding (1) while the DC-27 contained mistakes, it satisfied the requirements of section 8-1002(a); and (2) therefore, the KDOR continued to have the authority to take action in this case. View "Fisher v. Kan. Dep't of Revenue" on Justia Law

The Supreme Court reversed the rulings of the lower courts against the City of Lansing in this dispute between municipalities in Leavenworth Country over the future and assets of a fire district, holding that an interlock agreement governing the fire district was enforceable by its clear terms.Lansing invoked the termination and assets provisions of the agreement, seeking to withdraw from the agreement. Thereafter, two townships petitioned for declaratory judgment to stop the dissolution or alteration of the Fire District, arguing that the sections in the agreement that Lansing relied on to terminate the agreement were illegal and unenforceable. Lansing counterclaimed seeking a declaratory judgment that the agreement was enforceable in its entirety. The district court ruled in favor of the townships, and the court of appeals affirmed. The Supreme Court reversed, holding that Lansing's notice of termination of the agreement was effective and enforceable. View "Delaware Township v. City of Lansing" on Justia Law

The Supreme Court reversed the judgment of the Board of Tax Appeals (BOTA) concluding that Johnson County's valuations for the 2016 and 2017 tax years involving eleven Walmart and Sam's Club "big box" stores in the County were too high because they improperly relied on unadjusted sales and rental income data from other properties subject to build-to-suit leases, holding that In re Prieb Properties, LLC 275 P.3d 56 (2012), is overruled.The BOTA in this case did its duty to follow Prieb, a 2012 decision that crafted a rule of law to exclude appraisal opinions founded on unadjusted build-to-suit lease data to support valuations used in the process of ad valorem taxation. The court of appeals affirmed. The Supreme Court remanded the case, holding (1) Prieb's rationale invades BOTA's longstanding province as the fact-finder in the statutory process for appraising real property at its fair market value for ad valorem tax purposes; and (2) by following Prieb, BOTA improperly imposed an exclusionary rule on the County's evidence rather than simply considering its weight and credibility. View "In re Equalization Appeal of Walmart Stores, Inc." on Justia Law

In this consolidated workers compensation appeal arising from disputes between EagleMed, LLC, a critical care transportation service, and Travelers Insurance, a workers compensation insurance carrier, the Supreme Court reversed the court of appeals' judgment directing the Workers Compensation Appeals Board to dismiss this proceeding, holding that remand was required.49 U.S.C. 41713(b)(1) prohibits states from enacting or enforcing any law related to a service of an air carrier providing air transportation. Kan. Stat. Ann. 44-510i(c)(2) requires the Director of the Division of Workers Compensation to oversee health care provider services to ensure charges are "fair, reasonable, and necessary." At issue was the phrase "usual and customary charges." The Board decided it lacked jurisdiction to determine the reasonableness of air ambulance charges that would reduce the amount owed, made no factual determination whether the disputed billings were "usual and customary charges," and ordered Travelers to pay in full. The court of appeals reversed. The Supreme Court vacated the panel's decision and the Board's order that Travelers pay EagleMed in full and remanded the case for the Board to decide whether the charges were "usual and customary," holding that the Board will need to interpret this term in a manner reflecting both federal law and the state's legislative purposes. View "EagleMed v. Travelers Insurance" on Justia Law

The Supreme Court affirmed the decision of a panel of the court of appeals affirming the judgment of the district court granting summary judgment to the Kansas Workers Compensation Fund on the Fund's collateral action against Trademark, Inc., holding that there was no error.After Juan Medina received a workplace injury he sought compensation from his direct employer under the Kansas Workers Compensation Act, Kan. Stat. Ann. 44-501 et seq. Because the employer did not carry workers compensation insurance, Medina impleaded the Fund to obtain benefits. Thereafter, an ALJ awarded compensation to Medina, and the Fund paid Medina benefits. The Fund then filed this action under Kan. Stat. Ann. 44-532a against Trademark, the general contractor for whom Medina's employer was acting as a subcontractor at the time of the injury. The district court granted summary judgment to the Fund and denied attorney fees. The court of appeals panel affirmed. The Supreme Court affirmed, holding (1) the lower courts correctly interpreted section 44-532a as allowing the Fund to pursue an action against Trademark; but (2) the Fund was not entitled to attorney fees. View "Schmidt v. Trademark, Inc." on Justia Law

The Supreme Court affirmed the decision of the Board of Tax Appeals (BOTA) upholding county appraisers' application of the Kansas Oil and Gas Appraisal Guide developed by the Kansas Department of Revenue's Property Valuation Division for valuations given for the 2016 tax year to the working interest of River Rock Energy Co. in 203 gas wells and related equipment, holding that the BOTA did not err.In its dispute, River Rock argued that the Guide produced inflated values for its working gas leases by capping operating expense allowances to arrived at a "working interest minimum lease value." The BOTA upheld the county appraisers' application of the Guide. The court of appeals affirmed in part and reversed in part, holding that the Guide overvalued River Rock's wells. The Supreme Court affirmed in part and reversed in part, holding (1) the county appraisers correctly applied the Guide; and (2) the court of appeals correctly decided that it had jurisdiction to entertain River Rock's challenge to BOTA's order refusing to abate filing fees. View "In re Tax Appeal of River Rock Energy Co." on Justia Law