50-632. Remedies of the attorney general or any county or district attorney; procedure for sequestration.
50-632
50-632. Remedies of the attorney general or anycounty or districtattorney; procedure for sequestration.(a) The attorney general or any county or district attorney may bring anaction:
(1) To obtain a declaratory judgment that an act or practice violatesthis act;
(2) to enjoin, or to obtain a restraining order against a supplier whohas violated, is violating, or is otherwise likely to violate this act; or
(3) to recover damages on behalf of consumers by reason of violations ofthis act; and
(4) to recover reasonable expenses and investigation fees.
(b) In lieu of instigating or continuing an action or proceeding, theattorney general may accept a consent judgment with respect to any act orpractice declared to be a violation of this act. Such a consent judgmentshall provide for the discontinuance by the supplier entering the same of anyact or practice declared to be a violation of this act, and it may include astipulation for the payment by such supplier of reasonable expenses andinvestigation fees incurred by the attorney general. The consent judgment alsomay include a stipulation for restitution to be made by such supplier toconsumers of money, property or other things received from such consumers inconnection with a violation of this act and also may include a stipulation forspecific performance. Any consent judgment entered into pursuant to thissection shall not be deemed to admit the violation, unless it does so by itsterms. Before any consent judgment entered into pursuant to this section shallbe effective, it must be approved by the district court and an entry madethereof in the manner required for making an entry of judgment. Once suchapproval is received, any breach of the conditions of such consent judgmentshall be treated as a violation of a court order,and shall be subject to all the penalties provided by law therefor.
(c) In any action brought by the attorney general or the county ordistrict attorney, the court may,without requiring bond of the attorney general or the county or districtattorney:
(1) Make such orders or judgments as may be necessary to prevent the useor employment by a supplier of any practices declared to be a violation of thisact;
(2) make such orders or judgments as may be necessary to compensate anyconsumer for damages sustained;
(3) make such orders or judgments as may be necessary to carry out atransaction in accordance with consumers' reasonable expectations;
(4) appoint a master or receiver or order sequestration ofproperty wheneverit shall appear that the supplier threatens or is about to remove, conceal ordispose of property to the damage of consumers to whom restoration would bemade under this subsection or whenever it shall appear that theproperty was derived or is commingled with other property derived fromtransactions involving violations of the act, the court shallassess theexpenses of a master or receiveragainst the supplier;
(5) revoke any license or certificate authorizing that supplier to engage inbusiness in this state;
(6) issue a temporary restraining order or enjoin any supplier from engagingin business in this state;
(7) award reasonable expenses and investigation fees, civil penalties andcosts; and
(8) grant other appropriate relief.
(d) If an order of sequestration is issued pursuant to paragraph (4) ofsubsection (c):
(1) Application for such order shall be by motion verified by an affidavitsetting forth facts in support thereof and the court may hear such motion exparte;
(2) such order shall operate as a lien on the sequestered property and maycontain other provisions as the court deems appropriate;
(3) if such order of sequestration was issued ex parte, such order shall beserved upon the supplier whose property is sequestered not later than five daysafter such order is issued. Service shall be by any manner permitted by thecodeof civil procedure or by ordinary first class mail to the last known address ofthe supplier;
(4) a supplier whose property is sequestered may file a motion to dissolvethe sequestration, verified by affidavit, putting in issue the sufficiency ofthe proceedings, the supplier's claim of exemption as to any property which hasbeen sequestered, or the truth of the facts alleged in the affidavit on whichthe sequestration was ordered. The court shall hold a hearing on the motionwithin five days after the filing; and
(5) upon a finding that the party which obtained an ex parte order ofsequestration knew or should have known that grounds for sequestration did notexist, the court, upon a motion to dissolve, may allow actual damages for thewrongful sequestration.
History: L. 1973, ch. 217, § 10; L. 1991, ch. 159, § 6;L. 1993, ch. 177, § 2;L. 2001, ch. 187, § 1; July 1.