Our Cases: LS Power Midcontinent, LLC v. State

Michael R. Reck

May 01, 2023 | Litigation | Press Release

In June 2020, the Iowa legislature passed House File 2643, an omnibus appropriations bill, which included a section granting a right of first refusal (ROFR) (codified in Iowa Code section 478.16 (2020)) to incumbent electric transmission owners for construction and maintenance of Iowa’s electric infrastructure. Our client—a Missouri-based energy company—filed a petition for declaratory relief requesting the district court declare the ROFR unconstitutional and seeking injunctive relief to prevent the publication or enforcement of the new law.

The district court granted defendants’ motion to dismiss based on a lack of standing. The court of appeals affirmed finding plaintiffs cannot satisfy the injury-in-fact prong of the standing test, and declining to apply a public-importance exception to the standing requirement.

We sought further review from the Iowa Supreme Court, resulting in the case being remanded back to the trial court where we were granted summary judgment and a permanent injunction for our client.

You can read the Iowa Supreme Court decision here.

You can watch our Iowa Supreme Court argument below.