48-3197. Action to determine validity of
bonds; hearing; judgment
A. The board of directors, or any qualified elector, taxpayer or real property
owner within the district, may file an action for and on behalf of the district in the
superior court of the county in which the office of the district is located for the
purpose of determining the regularity and legality of the proceedings authorizing the
issuance of district bonds. The action may be filed although none of the bonds have been
sold.
B. The title of the action shall be "In the matter of the application of
_______________ district for a determination as to the validity of (series number)
_______________ of bonds of the district." The application shall state all the
proceedings taken relative to the issue and sale of bonds described therein, and if filed
by a party other than the board of directors, shall recite the interest of such party in
the matter.
C. Upon the filing of the action the clerk shall issue a summons as in civil
actions, except that the summons shall be directed to all persons who have or claim to
have an interest in the bonds without specifically naming any other defendant or
defendants. The summons shall be published in the same manner as summons are published
against nonresident defendants in other civil actions in the superior court, and if the
board of directors is not the applicant in the action, the summons shall be personally
served upon at least one member of the board of directors in the same manner as provided
for service of summons in other civil actions in the superior court.
D. Upon proof of publication being made and filed, and upon proof of service when
personal service is required, the superior court shall have jurisdiction to proceed in
the matter as in other civil actions commenced therein.
E. The issues shall be framed by a motion to dismiss the application for failure to
state a claim upon which relief can be granted. The motion to dismiss shall be filed
within thirty days after the date of the last publication of the summons unless the time
is extended by order of the court. Any person interested may without pleading intervene
and be heard upon the issues. Any persons interested may join in the motion to dismiss.
F. Upon filing of the motion the court shall hear and determine the issues at one
hearing upon the law and facts, and after hearing shall enter such judgment as it
determines upon the issues. The judgment shall be in writing and shall have the same
effect as other judgments of the court. The costs of the proceeding shall not be taxed
against any party thereto. The judgment may determine the legality and validity of, and
approve and confirm, all the proceedings taken in the organization of the district under
the provisions of this chapter, from and including the petition for the organization of
the district, and all proceedings taken for the issuance of the bonds which may affect
the validity of the bonds. The court shall disregard any error, irregularity or omission
which does not affect the substantial rights of the parties.
G. A final judgment in the proceedings shall be res adjudicata in all courts of the
state in all actions involving the validity of the bonds and the organization of the
district.
|