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City of Avon Wins Appeal

January 19, 2011

The Minnesota Court of Appeals determined the City of Avon was entitled to summary judgment on a contract dispute.  Respondent Nodland Construction Company, Inc. claimed it was entitled to a monetary judgment against the City under the terms of the construction contract.  The City, on the other hand, maintained that under a separate written agreement, Nodland pledged any amounts owing under the construction contract as security for a failed development.  The court determined the assessment security was an absolute guarantee of the developer’s obligation to pay the assessments and any claim Nodland had for the assessment security was against the developer.  The City of Avon was represented by Paul D. Reuvers and Jason J. Kuboushek.

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