31-764 Annexation; trustees; administrator; accounting; effect; special assessments prohibited. - Nebraska Statutes

31-764. Annexation; trustees; administrator; accounting; effect; special assessments prohibited.The trustees of a road improvement district or fire protection district or the trustees or administrator of a sanitary and improvement district shall within thirty days of the effective date of the merger submit to the city a written accounting of all assets and liabilities, contingent or fixed, of the district. Unless the city or village within six months thereafter brings an action against the trustees or administrator of the district for an accounting or for damages for breach of duty, the trustees or administrator shall be discharged of all further duties and liabilities and their bonds exonerated. If the city or village brings such an action and does not recover judgment in its favor, the taxable costs may include reasonable expenses incurred by the trustees of a road improvement district or fire protection district or the trustees or administrator of a sanitary and improvement district in connection with such suit and a reasonable attorney's fee for the trustees' or administrator's attorney. The city or village shall represent the district and all parties who might be interested in such an action. The city or village and such trustees or administrator shall be the only necessary parties to such action; Provided, nothing contained in this section shall authorize the trustees or administrator to levy any special assessments after the effective date of the merger. SourceLaws 1959, c. 130, § 2, p. 468; Laws 1969, c. 255, § 2, p. 926; Laws 1976, LB 313, § 9; Laws 1982, LB 868, § 26. AnnotationsNo action for accounting or damages having been filed, city of Omaha assumed all general obligations upon merger. Pedersen v. Westroads, Inc., 189 Neb. 236, 202 N.W.2d 198 (1972).