Arizona § 48-3197 - Action to determine validity of bonds; hearing; judgment

§ 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.