Marathon denies antitrust claims by Kentucky

Marathon Petroleum's lawyers say there's no basis for the state of Kentucky's federal lawsuit alleging the company violated antitrust laws, and they've asked a judge to dismiss the case.

Marathon's lawyers asserted that the company's business practices aren't anti-competitive and that the state failed to file the federal claims within the four-year statute of limitations.

The response is the first by Marathon in a suit filed in May by Kentucky Attorney General Jack Conway, who complained about inaction by federal officials. Conway, the Democratic nominee for governor, cited an investigation by his office dating to 2008 that showed Marathon has made untold millions from a regional monopoly where it can manipulate wholesale gas prices. Marathon bought Ashland Oil in 1998.

The suit alleges Marathon has used monopolistic practices, such as supply agreements and deed restrictions on real estate, to limit competition. That, in turn, has forced customers — particularly those in Louisville and Northern Kentucky — to pay more at the pump than they should. After filing the suit, the state hired two law firms with experience in antitrust actions, Boies Schiller & Flexner of New York and Strauss Troy of Cincinnati, to litigate that case on behalf of the state.

The new lawyers filed an amended complaint July 22.

Marathon's lawyers, Sheryl Snyder of Louisville and Matthew C. Blickensderfer of Cincinnati, both of Frost Brown Todd, asserted in a 21-page response that Marathon's agreements are legal contracts and that Kentucky is citing conduct prior to a four-year statute of limitation. They also said Conway also doesn't have authority to recover damages under the Clayton Antitrust Act. Only the Sherman Antitrust Act, which prohibits anti-competitive practices, allows an official to pursue monetary relief on behalf of state residents, according to the response.

Reporter Grace Schneider can be reached at 502-582-4082. Follow her on Twitter @gesinfk or email at gschneider@courier-journal.com.