North Prairie cleared in breach of contract lawsuit

A jury has decided in favor of North Prairie Rural Water District in a lawsuit initiated by a Berthold developer.

North Dakota Development Group, Phoenix, brought the lawsuit in North Central District Court in 2015 against North Prairie for alleged failure to comply with an agreement to provide water to its residential and commercial development on an 80-acre tract near Berthold. NDDG had purchased the land in May 2013.

The complaint stated North Prairie was obligated under the agreement to design and construct a pump station by October 2013. In January 2014, North Prairie informed NDDG the pump station would not be built. NDDG reported having paid $475,000 for engineering, a water main and impact fee.

North Prairie argued NDDG breached the agreement when it failed to make payments required to build the pump station. The water district asked the court for cost reimbursement and sought to have NDDG indemnify North Prairie for all losses and damages sustained.

A jury returned a verdict Oct. 12 that North Prairie did not breach its contract. North Prairie is awaiting a judge’s decision on its request to release $25,313 deposited by NDDG with the court as payment to the water district.