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Supreme Court to hear class-action dispute

Updated at: 04/10/2014 9:26 AM
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(AP) WASHINGTON - WASHINGTON (AP) — The Supreme Court will consider the requirements for transferring class-action lawsuits from state courts to federal courts.

The justices on Monday agreed to hear an appeal from a Michigan energy company that asserts it should be allowed to move a class-action case from Kansas state court to federal court. Federal law allows such transfers in cases involving more than $5 million.

A group of royalty owners sued the Dart Cherokee Basin Operating Co. alleging they were underpaid royalties on oil and gas wells. The plaintiffs did not seek a specific damage amount, but the company claimed it would far exceed $5 million.

A federal judge rejected the transfer request because the company did not offer any evidentiary support. The company says the law does not require detailed evidence.

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