In re: Lane Andrew Patmon and Amy Elizabeth Patmon; Kenneth Ritz v. Lane Andrew...
In re: Lane Andrew Patmon and Amy Elizabeth Patmon; Kenneth Ritz v. Lane Andrew...
Trial Court Opinion
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SIGNED this 12th day of May, 2026. LS N GINS □□
District □
Dale L. Somers
United States Chief Bankruptcy Judge
Designated for online publication
UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF KANSAS
In re:
Lane Andrew Patmon and Case No. 24-40496
Amy Elizabeth Patmon, Chapter 12
Debtors.
Kenneth Ritz,
Plaintiff,
Vv.
Adversary No. 24-7016
Lane Andrew Patmon,
Defendant.
Lane Andrew Patmon,
Third-Party Plaintiff,
v.
Sandhills Global, Inc. d/b/a
AUCTIONTIME.COM, Omaha
Creek Trailer Sales, Inc., and
Beau Barclay,
Third-Party Defendants.
Memorandum Opinion and Order Granting Sandhills’ Motion to Dismiss
The plaintiff in this adversary proceeding filed a dischargeability complaint
against Lane and Elizabeth Patmon (collectively, the “Debtors”). Mr. Patmon
subsequently filed a Cross-Complaint1 against Sandhills Global, Inc. d/b/a
AuctionTime.com (“Sandhills” or “AuctionTime”). Sandhills moved to dismiss the
Cross-Complaint. For the following reasons, the Court grants Sandhills’ motion.
I. Background and Procedural History
In early February 2024, Lane Patmon (“Patmon”) placed a call to
AuctionTime’s 1-800 phone number to discuss an internet auction sale of certain
pieces of farm machinery and equipment. AuctionTime is an online auction platform
that connects buyers and sellers of heavy machinery and equipment. A person at
AuctionTime’s main office then reached out to Beau Barclay (“Barclay”), a field
representative and owner of Omaha Creek Trailer Sales, Inc. (“Omaha Creek”),
1 Although Mr. Patmon’s characterization of this pleading as a “Cross-Complaint” is not procedurally
correct, the Court interprets the Cross-Complaint as a third-party complaint. Patmon’s
mischaracterization does not impact the Court’s analysis.
directing him to respond to Patmon. Barclay contacted Patmon to set up a meeting
and subsequently drove to Patmon’s farm to discuss the details of the sale.
On or about February 21, 2024, Patmon and Omaha Creek entered into an
Online Auction Listing & Marketing Agreement (the “Agreement”). Under the
Agreement, Patmon authorized Omaha Creek to market and sell certain pieces of
equipment. According to Patmon, he later advised Barclay about some
misinformation in the online descriptions of the equipment, but Barclay did not
remove the advertising.
In March 2024, an auction took place during which the listed items were sold
to third party buyers and Barclay. Multiple disputes arose over the distribution of
the sale proceeds and release of the equipment sold. Patmon and his wife filed their
Voluntary Petition under Chapter 12 on July 23, 2024.
The Adversary Proceeding2
On December 19, 2024, Kenneth Ritz (“Ritz”), a buyer at the auction, filed a
Complaint against the Debtors under § 523(a)(2), (a)(4), and (a)(6) to determine the
dischargeability of the $75,075 debt owed to Ritz and to recover consequential
damages of $18,500.3 Ritz was the successful bidder of a tractor that he alleges he
didn’t receive. Furthermore, Ritz contends the tractor was advertised as having
fewer hours on it than it actually had.
2 Two other adversary proceedings related to the auction are pending in this bankruptcy case: Nos. 24-
07011 and 25-07018.
3 Doc. 1. Ritz dismissed his claims against Amy Patmon. Doc. 30.
3
In his Answer, Patmon denies the allegations and includes a Cross-
Complaint4 against Omaha Creek and Barclay, bringing the following actions
against them:
Count I – Breach of Contract
Patmon asserts Omaha Creek and Barclay breached the covenant of
good faith and fair dealing when they misrepresented the condition of
the machinery and failed to correct the advertising after Patmon
brought it to their attention. He claims he was sued by a purchaser (Ritz)
as a result.
Count II – Conversion
Patmon alleges Omaha Creek and Barclay misappropriated the sale
proceeds for their own use. He asserts their actions were willful and
committed with malice or reckless disregard for the rights of Patmon
and his creditors. He seeks actual, consequential and punitive damages.
Count III – Breach of Fiduciary Duty
Patmon argues Omaha Creek and Barclay have commingled the sale
proceeds with personal and/or business funds – the proceeds were trust
funds, and the Plaintiffs had a fiduciary duty to turn them over to
Patmon and his creditors. He claims this misconduct constitutes a
breach of the duties of good faith, honesty, full disclosure and fair
dealing.
On July 16, 2025, Patmon filed a second Cross-Complaint, this time against
Sandhills (the “Sandhills Complaint”).5 The Sandhills Complaint is virtually
identical to the Cross-Complaint filed against Omaha Creek and Barclay (the
counts against Sandhills are collectively referred to as the “Patmon Claims”).
4 Doc. 6. See fn. 1.
5 Doc. 59. See also fn. 1.
4
Sandhills’ Motion to Dismiss
On September 9, 2025, Sandhills filed a motion to dismiss the Sandhills
Complaint and dismiss Sandhills as a third party defendant from this adversary
proceeding (the “Motion”).6 Sandhills’ position can be distilled into the following
alternative arguments: 1) the Patmon Claims have been brought in an improper
venue and should be dismissed based on the doctrine of forum non conveniens, and
2) the Sandhills Complaint should be dismissed under Fed. R. Civ. P. 12(b)(6)
because Patmon has failed to state claims upon which relief can be granted.
Because the Court concludes dismissal is appropriate based on the former, the
Court need not reach the latter.
Sandhills’ Motion centers on the Terms of Use found on its website. Sandhills
utilizes clickwrap terms of service to govern users’ access and use of the computer
server.7 According to Sandhills’ Chief Operations Officer, Patmon first registered
with the AuctionTime site on August 3, 2021, and would have accepted the Terms of
Use then.8 Each time Patmon logged in, he necessarily agreed to them.9
6 Doc. 67.
7 A “clickwrap agreement” is a digital contract where users explicitly indicate their consent to terms
and conditions by performing an affirmative action, typically involving clicking a button labeled “I
Agree” or checking a box to confirm acceptance. What Is a Clickwrap Agreement and Is It Enforceable?,
Legal Clarity (Aug. 17, 2025), https://legalclarity.org/what-is-a-clickwrap-agreement-and-is-it-
enforceable/. This type of agreement is ubiquitous today.
8 Declaration of Evan Welch, attached to the Motion.
9 Id.
5
The following language appears prominently at the start of the Terms
of Use:
THESE TERMS ARE A BINDING CONTRACT
BETWEEN YOU AND SANDHILLS. PLEASE
READ THEM CAREFULLY. BY ACCESSING AND
USING OUR SITES AND SERVICES, WHETHER AS
A VISITOR, BIDDER OR SELLER, YOU CONFIRM
YOU HAVE READ, UNDERSTOOD AND AGREE TO
BE BOUND BY THESE TERMS. WE RECOMMEND
THAT YOU PRINT A COPY OF THESE TERMS FOR
FUTURE REFERENCE.10
Most relevant to the Motion is the Term of Use’s forum selection clause (the
“FSC”) stating “[a]ny disputes arising out of the General Terms of Use are subject to
the exclusive jurisdiction of the courts of Lancaster County [Lincoln], Nebraska,
USA.”11 The question before the Court is whether the FSC is enforceable.
II. Analysis
A. The adjudication of the Patmon Claims is not a core
proceeding so the FSC is enforceable.
Bankruptcy judges are authorized to hear and determine all bankruptcy
cases and “all core proceedings arising under title 11.”12 The term “core
proceedings” is statutorily defined and includes matters concerning the
administration of the estate.13 A matter that has no existence outside of bankruptcy
is a core proceeding.14 Conversely, “[a] proceeding is non-core if it does not invoke
10 Id., Exh. A (capitalization and bold in original).
11 Id.
12 28 U.S.C. § 157(b)(1).
13 28 U.S.C. § 157(b)(2)(A)-(P).
14 Gardner v. United States (In re Gardner), 913 F.2d 1515, 1518 (10th Cir. 1990).
6
any substantive right under federal bankruptcy law and in the absence of
bankruptcy, could have been brought in a District Court or state court.”15 And
simply because the bankruptcy estate has the potential to recover funds as a result
of an adversary proceeding does not render the proceeding “core.”16
Bankruptcy courts also have jurisdiction over related proceedings.17 The
widely accepted definition of a “related to” proceeding was articulated by the Third
Circuit Court of Appeals in the Pacor case18 and adopted by the Tenth Circuit Court
of Appeals in the Gardner case.19 Under this test, a “related to” proceeding is one
where “the outcome of that proceeding could conceivably have any effect on the
estate being administered in bankruptcy.”20 On the other hand, the mere fact there
may be common issues of fact between a civil proceeding and a controversy
involving the bankruptcy estate does not bring the matter within the scope of the
bankruptcy court’s “related to” jurisdiction.21
15 In re Dynamic Drywall, Inc., No. 15-5005, 2015 WL 4497967, at *3 (Bankr. D. Kan. July 21, 2015)
(citations omitted).
16 Montoya v. Curtis (In re Cashco, Inc.), 614 B.R. 715, 720 (Bankr. D.N.M. 2020). See also Hayim v.
Goetz (In re SOL, LLC), 419 B.R. 498, 506 (Bankr. D. Fla. 2009) (“[A] matter cannot be deemed core
merely because the debtor holds a claim, which, if successful, could increase the assets of the estate.”);
Peterson v. 610 W. 142 Owners Corp. (610 W. 142 Owners Corp.), 219 B.R. 363, 372 (Bankr. S.D.N.Y.
1998) (that the plaintiffs may recover a portion or all of any judgments against the defendant from
insurance proceeds does not transform this otherwise non-core, related-to adversary proceeding into a
core matter).
17 28 U.S.C. §§ 157(a), 1334(b).
18 Pacor v. Higgins, 743 F.2d 984 (3d Cir. 1984) (partially overruled on other grounds).
19 Gardner, 913 F.2d at 1518.
20 Pacor, 743 F.2d at 994. See also In re Preston, No. 18-41253, 2021 WL 560118, at *2 (Bankr. D. Kan.
Feb. 8, 2021).
21 Safeco Ins. Co. of America v. Farmland Indus., Inc. (In re Farmland Indus., Inc.), 296 B.R. 793, 804
(B.A.P. 10th Cir. 2003).
7
Courts have routinely declined to enforce forum selection clauses in core
proceedings.22 Thus, one of the keys to the issue of whether the FSC should be
enforced is the characterization of the Patmon Claims as either core or non-core.23
Sandhills contends the Patmon Claims do not arise under title 11 and their
resolution does not require the interpretation or enforcement of bankruptcy law--
therefore, the claims are not core and lack the connection to bankruptcy sufficient to
confer this Court’s jurisdiction. Sandhills admits Patmon’s claims may “conceivably”
have an effect on the bankruptcy estate to a limited extent as any recovery of
monetary damages against Sandhills could be used to pay creditors; however, that
is the extent of the connection. For these reasons, Sandhills asserts, enforcement of
the FSC is appropriate.24
Patmon argues this is a core proceeding under 28 U.S.C. §157(c)(2)(O)
because the Patmon Claims affect liquidation of the assets of the estate. Further, he
asserts the Patmon Claims arise in the context of two adversary proceedings, both
deemed core matters, and the claims in those proceedings cannot now be deemed
non-core. Thus, the FSC should not be enforced.
22 See, e.g., Kurz v. EMAK Worldwide, Inc, 464 B.R. 635, 641 (D. Del. 2011) (concluding that forum
selection clauses are unenforceable when the state action falls within a bankruptcy court’s core
jurisdiction); Access Care, Inc. v. Sten-Barr Network Solutions, Inc. (In re Access Care, Inc.), 333 B.R.
706, 713 (Bankr. E.D. Pa. 2005) (forum selection clause enforced even when it was “debatable whether
any of Debtor’s claims fall within the bankruptcy court’s ‘core’ jurisdiction.”).
23 See In re D.E. Frey Group, Inc. v. FAS Holdings, Inc. (In re D.E. Frey Group, Inc.), 387 B.R. 799, 807
(D. Colo. 2008) (public policy against transferring core proceedings pursuant to a forum selection
clause is only one factor and should not be given controlling weight).
24 Doc. 67 at 10-11.
8
Both parties cite In re Cashco to support their respective positions.25 In that
case, a class-action suit was filed against the debtor in state court before the debtor
filed bankruptcy. The state court imposed monetary sanctions against the debtor
and they were deposited into the court’s registry.
After the bankruptcy filing, the trustee asserted claims for legal malpractice
and breach of fiduciary duty in the state court against the attorneys who previously
represented the debtor. The attorneys removed the case to the bankruptcy court –
initiating an adversary proceeding – and filed a motion to dismiss. The trustee
moved for remand to state court. The defendants objected on the grounds that the
adversary proceeding was a core proceeding under § 157(b)(2)(O) because the
outcome could affect the liquidation of assets. The court disagreed, reasoning that
the potential of a recovery was insufficient to characterize the proceeding as core.26
Additionally, the attorneys argued because their defense implicated issues
concerning property of the estate, the entire adversary proceeding was core. The
court rejected that argument also. It acknowledged that “an otherwise non-core
proceeding can become core when a defendant’s core counterclaim involves facts
inextricably intertwined with the plaintiff’s claims.”27 It distinguished this case,
however, because 1) the attorneys had not asserted a claim against the estate,28 and
25 Cashco, 614 B.R. 715.
26 Id. at 720.
27 Id. at 722.
28 Whether the defendant filed a proof of claim is a significant part of the core/non-core analysis. See
e.g., Statutory Comm. of Unsecured Creditors v. Motorola, Inc. (In re Iridium Operating LLC), 285 B.R.
822, 830 (S.D.N.Y. 2002) (citations omitted) (filing a proof of claim invokes the core jurisdiction of the
bankruptcy court).
9
2) whether the sanctions in the registry constituted estate property was not
dependent on the facts necessary to adjudicate the state court claims. The court
concluded “[t]he Trustee’s claims are merely ‘related to’ the Debtor’s bankruptcy
case because the outcome of the adversary proceeding could conceivably have an
effect on the bankruptcy estate.”29 That is, the claims were related to the
bankruptcy proceeding and were not core.
In the instant case, while the Patmon Claims arise from the same transaction
on which this adversary proceeding is based, Sandhills’ argument that the Patmon
Claims are non-core is persuasive. The Patmon Claims are based on state law.
Sandhills has not filed a claim against the bankruptcy estate nor has it filed an
affirmative defense that requires bankruptcy expertise. The benefit to the estate is
speculative. As the Tenth Circuit BAP put it: “Their claim lacks an anchor to
bankruptcy law sufficient to confer core jurisdiction....”30 At most, the Patmon
Claims could be characterized as related proceedings.
Likewise, Patmon’s argument that his claims against Sandhills fall under 28
U.S.C. § 157(b)(2)(O) as a core proceeding affecting the liquidation of the assets of
the estate is not compelling. As Sandhills notes, courts have rejected that argument.
29 Id.
30 In re Houlik, 481 B.R. 661, 674 (B.A.P. 10th Cir. 2012).
10
In the words of one such court:
We decline, however, to give such a broad reading to
subsection 157(b)(2)(O); otherwise, the entire range of
proceedings under bankruptcy jurisdiction would fall
within the scope of core proceedings, a result contrary to
the ostensible purpose of the 1984 Act.31
In short, Patmon has not demonstrated that his claims against Sandhills are
core and therefore invoke this Court’s jurisdiction. The Court, therefore, rejects
Patmon’s argument that the FSC is unenforceable on those grounds.
B. Enforcement of the FSC does not violate public policy.
When considering a typical dismissal motion based on forum non conveniens,
the court weighs various private and public interest factors to determine whether
dismissal would serve the convenience of the parties and otherwise promote the
interest of justice.32 The existence of a forum selection clause changes the calculus;
a court considers the public-interest factors only.33 The Court will now address the
public interest and policy factors raised by the parties.
31 Wood v. Wood (In re Wood), 825 F.2d 90, 95 (5th Cir. 1987). See also Baum v. Baum (In re Baum),
638 B.R. 748, 753 (Bankr. E.D. Mich. 2022) (interpreting § 157(b)(2)(O) broadly would essentially make
a core proceeding out of any pre-petition state law claim asserted by a bankruptcy debtor); Mugica v.
Helena Chemical Co. (In re Mugica), 362 B.R. 782, 788 (Bankr. S.D. Tex. 2007) (declining to give a
broad reading of § 157(b)(2)(O)).
32 K.R.W. Construction, Inc. v. Stronghold Eng’g, Inc., 598 F. Supp.3d 1129, 1143 (D. Kan. 2022).
Though Sandhills’ uses the doctrine of forum non conveniens and “improper venue” interchangeably
and does not specifically refer to Bankruptcy Rule 7012 (dismissal for improper venue), the analysis
is virtually the same under both theories. See, e.g., Lofstedt v. Nebraska Bank (In re York), No. 25-
01317, 2026 WL 729815 (Bankr. Colo. March 13, 2026).
33 Atl. Marine Constr. Co. v. United States Dist. Court, 571 U.S. 49, 62-3 (2013); K.R.W. Construction,
supra.
11
1. Forum selection clauses are prima facie valid because they
protect the parties’ expectations.
Historically, forum selection clauses were found to be contrary to public
policy and, therefore, unenforceable.34 In the widely-cited M/S Bremen v. Zapata
Off-Shore Co. case, however, the Supreme Court noted a trend toward accepting
these clauses to give effect to the expectations of the parties in freely negotiated
agreements if unaffected by fraud or undue influence.35 The Supreme Court stated
the defendant seeking to defeat a forum selection clause must clearly show
“enforcement would be unreasonable and unjust, or that the clause was invalid for
such reasons as fraud or overreaching.”36 In other words, to overcome the
presumption that a forum selection provision is valid, a party must make “a
showing of inconvenience so serious as to foreclose a remedy, perhaps coupled with
a showing of bad faith, overreaching or lack of notice.”37
That burden is a heavy one.38 Broad and conclusory allegations of fraud
without specific factual allegations or evidentiary support are insufficient to
invalidate forum selection clauses.39 An underlying principle of the relevant cases is
34 M/S Bremen v. Zapata Off-Shore Co., 407 U.S. 1, 9 (1972). Though the Bremen case involved
admiralty law, the application of the principle is not limited to admiralty cases. Akesogenx Corp. v.
Zavala, 55 Kan. App. 2d 22 (Kan. Ct. App. 2017) (citations omitted).
35 Id. at 12-13.
36 Id. at 15.
37 Teran v. GB Int'l, S.P.A., 920 F. Supp. 2d 1176, 1183 (D. Kan. 2013) (citing Bremen, 407 U.S. at 10,
15, and Riley v. Kingsley Underwriting Agencies, Ltd., 969 F. 2d 953, 957 (10th Cir. 1992)).
38 Riley, 969 F.2d at 957.
39 Id. at 960 (citing Carnival Cruise Lines, Inc. v. Shute, 499 U.S. 585, 594 (1991) and Spradlin v. Lear
Siegler Mgmt. Servs., 926 F.2d 865, 868 (9th Cir. 1991)).
12
that it is the duty of every contracting party to learn and know the contents of a
contract before signing it.40
Patmon admits that generally, a forum selection clause is valid and
enforceable unless the party seeking to invalidate it shows that enforcement would
be unreasonable under the circumstances.41 He asserts in this case, however, the
FSC “is so unfair and inconvenient that it, for all purposes, deprives [him] of a
remedy or his day in court.”42 He states further that his allegations of overreaching
and bad faith are sufficient to defeat the FSC, citing Riley v. Kingsley Underwriting
Agencies, Ltd.43 But in that case, the Tenth Circuit ruled the forum selection clause
was enforceable. Riley, an American citizen, entered into an agreement with a
British underwriter. The agreement provided the courts of England would have
exclusive jurisdiction over any disputes. Riley filed an action in federal district court
against the defendant for securities laws violations and fraud. The district court
held the choice of forum provision was valid and enforceable. Riley appealed. The
Tenth Circuit affirmed for several reasons: 1) the underwriting agreement reflected
numerous contacts with the foreign forum; 2) Riley would not be deprived of his day
in court though his remedies may be different or less favorable; 3) Riley never
pleaded that the specific forum selection clause was obtained by fraud; and 4)
40 Commercial Credit Corporation v. Harris, 212 Kan. 310, 314 (Kan. 1973).
41 Doc. 71 at 7.
42 Id. at 9.
43 969 F.2d 953 (10th Cir. 1992).
13
nothing in the record showed Riley would get anything other than a fair hearing in
England. “4
Here, Patmon does allege bad faith and overreaching by Sandhills, yet his
allegations are largely directed at Barclay, including:
e Barclay never specifically confirmed with Patmon that the descriptions
of the auction items were correct before posting them for sale;
e Barclay misrepresented Patmon’s tractor as having fewer hours on the
meter than what was actually on the tractor; and
e Barclay refused to correct the advertising or remove the items from the
auction site as Patmon demanded.*
Patmon contends bad faith is shown by AuctionTime’s failure to respond or
meaningfully address Patmon’s repeated requests to have the listing taken down
prior to the sale of the misrepresented items.‘46 He also contends “[a]fter ignoring
reasonable requests for help, allowing harm through inaction, refusing to accept
financial responsibility, and overreaching, demanding out-of-state litigation shows a
clear pattern of bad faith.”47 These are conclusory, unsupported statements that are
insufficient to render the FSC unenforceable.
Patmon claims further, without supporting evidence, an out of state
proceeding would cause him undue hardship: travel expenses, extended time away
from home and employment, the cost of engaging new attorneys, compelling
44 Td,
45 Doc. 71. The link Patmon makes between Barclay and Sandhills is that “it is Patmon’s contact with
AuctionTime that resulted in the connection with Barclay, and Patmon did not independently seek out
Barclay as a seller’s agent.” Id. at 4.
46 Td. at 10.
47 Td. at 11.
14
witnesses to travel. Under the Bremen standard, a showing of inconvenience is also
insufficient to defeat a forum selection clause. Moreover, Patmon’s personal
inconvenience constitutes a private interest, a factor not generally considered when
a forum selection clause is involved.
Patmon will not be deprived of his day in court – he can proceed with his
claims against Barclay and Omaha Creek through this adversary proceeding.
Additionally, Nebraska is not comparable to a foreign forum; while it may be
inconvenient to cross the state line,48 Patmon has not asserted he would receive
anything other than a fair trial there. Patmon has failed to meet his burden to
overcome the presumption of the FSC’s validity.
2. The policy of centralization is not violated.
Courts have recognized the strong public policy favoring centralization
of bankruptcy proceedings in a bankruptcy court.49 This policy justifies the non-
enforcement of a forum selection clause in the interest of justice and the public
interest in providing debtors an orderly and expeditious rehabilitation.50
Conversely, in the Tenth Circuit, “[b]ankruptcy courts should be reluctant to
entertain questions which may be equally well resolved elsewhere.”51
48 The Court notes as an aside the distance from Patmon’s residence to state court in Lancaster County
is actually shorter than the distance from his residence to this Bankruptcy Court.
49 Kurz, 464 B.R. at 640 (citing cases).
50 See Iridium, 285 B.R. at 837; Societe Nationale Algerienne Pour La Recherche, etc. v. Distrigas Corp.,
80 B.R. 606, 610 (D.Mass. 1987).
51 First State Bank & Trust Co. of Guthrie, Okla. v. Sand Springs State Bank of Sand Springs, Okla.,
528 F.2d 350, 354 (10th Cir. 1976).
15
Patmon argues public policy concerns justify the non-enforcement of the FSC,
citing a section in the Kurz case52 which lists a number of courts acknowledging
the favorable policy of centralization. Notably, Patmon omits the sentences
immediately following the litany of cases: “However, the importance of
centralization waxes and wanes with the characterization of the proceeding as
either core or non-core. Consequently, the core and non-core distinction dictates
enforceability of a forum selection clause.”53 The court in Iridium likewise
articulated the importance of considering this distinction:
Further, although there is a strong policy favoring the
enforcement of forum selection clauses in this Circuit, this
policy is not so strong as to mandate that forum selection
clauses be adhered to where the dispute is core.
“Transferring a core matter that is not ‘inextricably
intertwined’ with non-core matters adversely impacts the
strong public policy interest in centralizing all core matters
in the bankruptcy court.”54
It follows that enforcing a forum selection clause when the dispute is non-core
would not violate the policy of centralization. As noted previously, since the Patmon
Claims are non-core, enforcement of the FSC would not violate this policy.
3. The Kansas Consumer Protection Act is inapplicable.
One of the purposes of the Kansas Consumer Protection Act (the
“KCPA”) is “to protect consumers from suppliers who commit deceptive and
52 Kurz, 464 B.R. at 640.
53 Id. at 640-41 (internal citations omitted). See also In re Exide Technologies, 544 F.3d 196, 206 (3rd
Cir. 2008) (“Whether claims are considered core or non-core proceedings dictates not only the
bankruptcy court’s rule and powers but also ... the enforcement of forum selection clauses.”).
54 Iridium, 285 B.R. at 836-37.
16
unconscionable practices.”55 Patmon argues enforcement of the FSC violates this
policy and the KCPA’s waiver provision: “Except as otherwise provided in this act, a
consumer may not waive or agree to forego rights or benefits under this act.”56
Although Patmon does not expressly state this, we can infer he is contending the
FSC acts to waive his right to bring the action against Sandhills in a Kansas court
under the KCPA’s venue provision57 – therefore, the waiver statute prevents the
operation of the FSC.
This argument is flawed. The venue provision expressly applies to actions
brought under the KCPA. As Sandhills points out, Patmon’s claims against
Sandhills were not brought under the KCPA so the KCPA does not apply.
Indeed, the only case Patmon cites to support his position, Kansas City Grill
Cleaners, LLC v. BBQ Cleaner, LLC,58 actually supports Sandhills’ position that the
KCPA is inapplicable here. The plaintiff in that case entered into a contract with
the defendant for the purchase of outdoor grill supplies. The contract included a
forum selection clause providing that the venue for any resulting litigation was only
proper in New Jersey. When a dispute arose, the plaintiff filed a petition in Kansas
55 Kan. Stat. Ann. § 50-623(b).
56 Kan. Stat. Ann. § 50-625.
57 The KCPA’s venue provision states:
Every action pursuant to this act shall be brought in the district court of any county in
which there occurred an act or practice declared to be a violation of this act, or in which
the defendant resides or the defendant's principal place of business is located. If the
defendant is a nonresident and has no principal place of business within this state,
then the nonresident defendant can be sued either in the district court of Shawnee
county or in the district court of any county in which there occurred an act or practice
declared to be a violation of this act.
Kan. Stat. Ann. § 50-638(b) (emphasis added).
58 57 Kan. App. 2d 542 (Kan. Ct. App. 2019).
17
alleging the defendant violated the KCPA by engaging in a deceptive trade practice.
The defendant moved to dismiss based on the forum selection clause and the district
court dismissed the case. The plaintiff appealed. The court of appeals reversed: “[A]
Kansas consumer's right to pursue a KCPA action in a Kansas venue is a right that
may not be waived. And allowing the parties' forum-selection clause to eliminate
this right in violation of K.S.A. 50-625(a) would contravene Kansas public policy.59
The Patmon Claims were not brought under the KCPA. The first time
Patmon even mentioned the statute was in its Objection to the Motion. Thus, the
FSC cannot violate the KCPA because it does not apply to the Patmon Claims.
III. Conclusion
Forum selection clauses are enforced in all but the most exceptional cases.
This case is not exceptional. Patmon has not satisfied his burden to overcome the
presumption of the FSC’s validity nor has he demonstrated that enforcement of the
FSC violates public policy. Accordingly, the Motion is granted. Patmon’s Cross-
Complaint against Sandhills is hereby dismissed, and Sandhills is dismissed as a
party to this adversary proceeding.
59 Id. at 553 (emphasis added). See also K.R.W. Construction, Inc. v. Stronghold Eng’g, Inc., 598 F.
Supp.3d 1129, n. 43 (D. Kan. 2022) (noting the Kansas City Grill Cleaners case involves a different
statute than the one in this case and is thus irrelevant to the issue of the enforceability of the forum
selection clause here).
Sandhills makes a secondary argument about the KCPA’s inapplicability: Sandhills is exempt
because § 50-635(a) provides the statute does not apply to “a publisher ... engaged in the dissemination
of information or the reproduction of printed or pictorial matter so far as the information or matter
has been disseminated or reproduced on behalf of others without actual knowledge that it violated the
Kansas consumer protection act.” This argument has merit given Sandhills only disseminates
information posted on AuctionTime by its users and the Terms of Use expressly state Sandhills has
no control over the content provided on its website. See Doc. 72 at 8.
18
It is so ordered.
###
19
Case-law data current through December 31, 2025. Source: CourtListener bulk data.