A judge has dismissed a consumer-protection lawsuit filed by Atty. Gen. Phill Kline's office against a Lawrence-based towing company.

In a ruling released Friday morning, District Court Judge Paula Martin found Kline's claims against TransMasters towing were pre-empted by a federal law that says a state can't control towing prices.

"It's a solid, straightforward decision by the judge. ... When the attorney general filed it, they didn't have a clue about the federal pre-emption side of it," said David Hauber, attorney for TransMasters owner Kevin Raasch. "They didn't analyze the situation factually or legally."

But Kline spokesman Jan Lunsford said the office was sticking with its position.

"We further intend to file documents consistent with our belief that the Kansas Consumer Protection Act is rightly applied to address unconscionable towing fees," Lunsford said.

Kline had filed suit in November, alleging the company charged "grossly excessive fees" and committed 14 violations of the Kansas Consumer Protection Act dating back to 1999. Lunsford said the suit was prompted by complaints from the Kansas Highway Patrol, consumers and insurance agents.

In one instance, Kline alleged a woman was told she'd have to pay $1,500 to get her car back because of incremental storage fees.

Kline alleged they amounted to "unconscionable acts" and deceptive business practices, in violation of the Kansas Consumer Protection Act.

But Hauber argued that the suit amounted to de facto price regulation barred by the 1995 Interstate Commerce Commission Termination Act. The law says that a state may not enact a law "related to a price, route or service of any motor carrier ... with respect to the transportation of property."

One exception is that the state may set a maximum price for "nonconsensual" tows - those performed without the prior consent or authorization of the owner or operator of the vehicle, such as those ordered by police. Martin found that issue was moot because the Kansas Consumer Protection Act doesn't set any maximum price for nonconsensual tows.

Hauber said consumer awareness, not a consumer-protection lawsuit, was the answer to people's concerns about towing prices.

"It's just like anything else: before you incur a bill, you should question the people about what their charges are going to be," he said.

Hauber said that since the lawsuit was filed, Raasch has been barred from towing on the Kansas Turnpike and that he was considering legal action because of it.

"They've drastically impacted his business, and they've done it because of pricing," he said.