Hays v. RutherAnnotate this Case
Plaintiffs were two Kansas residents who entered into an agreement with an out-of-state limited liability company (LLC) to assist them in managing their consumer debt and in dealing with their creditors. Plaintiffs brought an action against the LLC, its managing member, and other entities in federal court for alleged violations of the Kansas Credit Services Organization Act (KCSOA) and the Kansas Consumer Protection Act (KCPA). The U.S. district court certified two questions to the Kansas Supreme Court regarding the application of KCSOA and KCPA to attorneys and law firms. The Supreme Court answered by holding (1) If an attorney who is licensed to practice law in Kansas and who is acting within the course and scope of his or her practice is exempt from the provisions of the KCSOA, the attorney's law firm is also exempt; and (2) attorneys are not inherently exempt from the reach of the KCPA by virtue of the doctrine of separation of powers, but certain statutory remedies may be unconstitutional if they encroach on the traditional exclusive powers of the court, especially the powers relating to issuing and regulating the license to practice law.