HomeMy WebLinkAbout20082751.tiff DISTRICT COURT
CITY AND COUNTY OF DENVER
1437 Bannock Street
Denver, CO 80202
Plaintiffs:
HELEN MLEYNEK, GEIST MINERAL TRUST, TIM
PIVONKA, AND JAMES AND DONNA L. WEBSTER,
on behalf of themselves and all others similarly situated
v.
COURT USE ONLY
Defendant:
K. P. KAUFFMAN COMPANY, INC. Case Number: 2007 CV 3268
A Foreign Corporation
Div: 2
George A. Barton, Mo. Bar No. 26249
Law Offices of George A. Barton, P.C.
800 West 47th Street, Suite 700
Kansas City, MO 64112
(816) 300-6250
Fax: (816) 300-6259
Dudley Morton, Co. Bar No. 33265
Spoja&Morton, P.C.
600 Grant Street, Suite 201
Denver, CO 80203-3525
(720) 956-1700
Fax: (720) 359-1070
ATTORNEYS FOR PLAINTIFFS
NOTICE OF CERTIFICATION OF CLASS ACTION
AGAINST DEFENDANT K. P. KAUFFMAN COMPANY, INC.
TO: THE POTENTIAL MEMBERS OF THE CERTIFIED CLASS
IF YOU HAVE RECEIVED NATURAL GAS ROYALTY PAYMENTS FROM K. P.
KAUFFMAN COMPANY, INC. ("KAUFFMAN") ON NATURAL GAS PRODUCTION
IN THE STATE OF COLORADO,THIS NOTICE MAY AFFECT YOUR RIGHTS.
/�� -73 O 8 (�h; 04 F.-7- 2008-2751
A CLASS ACTION HAS BEEN CERTIFIED IN A PENDING CLASS ACTION
LAWSUIT AGAINST DEFENDANT KAUFFMAN. THE CLASS ACTION LAWSUIT
("THE LAWSUIT") CONCERNS THE ALLEGED UNDERPAYMENT OF ROYALTY
PAYMENTS MADE BY KAUFFMAN. THE LAWSUIT IS CURRENTLY PENDING IN
THE DISTRICT COURT FOR THE CITY AND COUNTY OF DENVER, COLORADO.
THE LAWSUIT HAS BEEN BROUGHT AGAINST KAUFFMAN BY VARIOUS
ROYALTY OWNERS ACTING ON BEHALF OF THEMSELVES AND OTHER
SIMILARLY SITUATED ROYALTY OWNERS.
THIS IS NOT A LAWSUIT BY DEFENDANT KAUFFMAN AGAINST YOU OR A
SOLICITATION BY A LAWYER. THE COURT HAS NOT RULED ON THE MERITS
OF THE PLAINTIFFS' CLAIMS OR THE DENIALS OF THOSE CLAIMS AND
OTHER DEFENSES ASSERTED BY DEFENDANT KAUFFMAN.
1. Why is This Notice Being Sent to You?
You are being sent this Notice because you may be a member of the Class in the Lawsuit
(as described below). Kauffman's records reflect that you have been paid natural gas royalties
on natural gas produced by Kauffman in the state of Colorado. This Notice explains the claims
being asserted in the Lawsuit, and also explains your right to remain a member of the Class (as
explained in Section 4 of this Notice), and your right to opt out of the certified Class (as
explained in Section 5 of this Notice).
The District Court Judge Herbert L. Stem, III is the presiding Judge for the Lawsuit. On
May 19, 2008, Judge Stem entered an Order certifying the Lawsuit as a class action. In the
Order certifying the Lawsuit as a class action, the Class of persons whose claims have been
certified is defined as follows:
All persons and entities to whom Kauffman has paid royalties or overriding
royalties on natural Gas produced from wells located in Colorado, pursuant to
leases or overriding royalty agreements that do not expressly authorize the
deduction of the costs incurred to market such Gas after it is severed from the
wellhead (collectively, "Royalty Agreements"). The defined Class excludes any
person or entity who: (I) is a working interest owner in a well operated by
Kauffman on whose behalf Kauffman has paid royalties for Gas production; (2)
Indian tribes; (3) the United States of America; (4) Kauffman, its affiliates, its
predecessors-in-interest, and their respective employees, officers and directors.
Judge Stern has appointed the attorneys for the Plaintiffs as the attorneys for the Class
("Class Counsel"). The names and addresses of the Class Counsel are listed in Section 6 of this
Notice.
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2. What is a Class Action?
A class action is a type of lawsuit in which a named plaintiff brings a suit on behalf of
other similarly situated persons to recover damages and other relief on behalf of other persons
they represent, without the necessity of each person incurring the expense of filing a separate
lawsuit, or joining in the lawsuit. Class actions are frequently brought about when issues of fact
or law are common, making it fair to bind all Class members to the orders and judgments in the
case, without the necessity of litigating multiple lawsuits involving similar claims.
3. What is the Lawsuit Against Kauffman About?
The Lawsuit against Kauffman seeks monetary and declaratory relief on behalf of the
Class, based on Plaintiffs' claims that Kauffman has underpaid royalties due and owing to the
Class on Kauffman's natural gas production in the state of Colorado.
The Plaintiffs claim that Kauffman has underpaid royalties relating to natural gas
produced from Kauffman wells in Colorado, by improperly deducting from those royalties
certain costs incurred to place the gas in a marketable condition, and to deliver the gas to the
location of the commercial marketplace.
Kauffman denies Plaintiffs' claims, and denies any liability to Plaintiffs or to any
members of the Class. Kauffman contends that it calculated and paid royalties in conformance
with the terms of its leases and all instruments creating overriding royalty interests, that the
natural gas was and is marketable at the wellhead, and that it calculated and paid royalties based
upon all proceeds received by Kauffman from the sale of gas, without making any deductions.
A more complete description of the Lawsuit, its status, and the rulings made in the
Lawsuit are available in the file for the Lawsuit maintained by the District Court for the City and
County of Denver. Alternatively, should you have any questions regarding the status, rulings or
issues in the Lawsuit, such questions can be submitted in writing to Class Counsel at the
addresses provided in Section 6 of this Notice.
4. Remaining a Member of the Class
If you choose to remain a Class member, YOU DO NOT NEED TO TAKE ANY
ACTION WHATSOEVER. Class Counsel will represent your interests as a member of the
Class. You will not be charged for their services or costs, other than as may be deducted from
any settlement amount or judgment, as approved by the Court. You also have the option of
entering your appearance in the Lawsuit through your own counsel, at your sole cost, if you so
desire. However,you will be bound by the result of the Lawsuit, regardless of the outcome, even
if no recovery is had. Class members will be barred from bringing any separate legal action
against Kauffman for the claims described in this Notice. If you remain a member of the Class,
you will receive notices of, and may participate in, any monetary damages or other relief
obtained on behalf of the Class. For this reason, you should notify Class Counsel (in writing at
the addresses provided in Section 6 of this Notice) of any corrections to, or changes in, your
name or address.
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5. Requesting to be Excluded From the Class
You may elect to be excluded from the Class ("Opt Out"). If you elect to be excluded
from the Class, you will not be bound by the judgment and final disposition of the Lawsuit. You
will retain, and will be free to pursue, any claims you may have on your own behalf against
Kauffman. Kauffman may assert any defenses or counterclaims it may have against you. You
should consult with your own attorney, at your sole cost, regarding your rights as well as any
defenses and counterclaims available to Kauffman as to your claims. To be excluded from the
Class, you must provide written election to be excluded from the Class to George Barton, 800
West 47th, Suite 700, Kansas City, MO 64112, one of the appointed Class Counsel. The Opt
Out election must contain your full name, Kauffman owner number(s) (if known), current
address, telephone number and either your signature or the signature of a person authorized to
request exclusion from the Class on your behalf. The written Opt Out election must be received
by Class Counsel on or before November 13, 2008.
6. Class Counsel
George Barton Dudley Morton
Law Offices of George A. Barton, P.C. Spoja & Morton, P.C.
800 West 47th, Suite 700 600 Grant Street, Suite 201
Kansas City, MO 64112 Denver, CO 80203
(816) 300-6250 (720) 956-1700
Fax (816) 300-6259 Fax (720) 359-1070
In any written correspondence with the Class Counsel, it is important that the envelope
and any documents inside contain the following case name and identifying case number for the
Lawsuit:
Mleynek, et al. v. K. P. Kauffman Company, Inc., Case No. 2007 CV 3268
7. If You Want to Inspect the Court File
The complaints, answers, pleadings, court orders and other documents are in the court file
for the Lawsuit, and may be inspected and copied at the following address.
Clerk's Office
District Court
City and County of Denver
1347 Bannock Street
Denver, CO 80202
DO NOT WRITE OR TELEPHONE THE CLERK'S OFFICE if you have any
questions about this notice. ANY QUESTIONS CONCERNING THIS NOTICE OR THE
KAUFFMAN LITIGATION SHOULD BE DIRECTED TO CLASS COUNSEL.
PLEASE DO NOT CALL KAUFFMAN, THE COURT OR THE COURT CLERK
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REQUEST FOR EXCLUSION FROM THE CERTIFIED CLASS
READ CLASS NOTICE CAREFULLY BEFORE FILLING OUT THIS FORM.
DO NOT FILL OUT THIS FORM IF YOU WANT TO REMAIN A MEMBER OF THE
KAUFFMAN CLASS.
The undersigned has read the Class notice issued in the Kauffman Litigation, AND does
NOT wish to be a member of the Kauffman Class certified in the case of Mleynek, et al.
v. K. P. Kauffman Company, Inc., Case No. 2007 CV 3268, District Court, City and
County of Denver, State of Colorado and understands that by executing this exclusion
form that:
(I) The undersigned is a Class Member in the Kauffman Litigation and, as such, has
the possibility of getting money or other benefits that may come from a trial or
settlement;
(2) The undersigned wishes to be excluded from ("Opt Out" of) this class action, and
by doing so, will not participate in any monetary recovery for the Class and will
not be bound by any Court orders or judgments.
Dated:
Name:
Kauffman Owner No.:
Address:
Telephone:
By:
Signature (title, if applicable)
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