North Dakota Supreme Court

East Central Water District v. City of Grand Forks

July 5, 20242024 ND 135

Summary

The Court answered two certified statutory-interpretation questions from federal court, holding that an agreement made without the required public lending authority as a party is void from its inception. It rejected the argument that the agreement is merely voidable and capable of ratification because the statute addresses the parties’ authority to contract, not merely an irregularity or waivable defense. The Court exercised its discretion to answer the questions because the answers could determine the federal proceeding.