Appeal of Dunbarton School District

The Dunbarton School District (appealed a Board of Education decision which determined that Dunbarton was liable to the Goffstown School District for its proportional share of Goffstown’s obligation on a 20-year construction bond approved in 2001 for renovations to the Goffstown High School. The hearing officer reasoned that, “[b]y initiating the withdrawal study, Dunbarton would have put Goffstown on notice prior to the bond as to the potential additional financial risk on the bond without Dunbarton remaining part of the [Authorized Regional Enrollment Area] AREA.” Although the 2004 AREA plan expired June 30, 2014, “Dunbarton was clearly on notice back in 2001 that there was a twenty (20) year bond, and had the opportunity to initiate a withdrawal study at that point in time so that Goffstown would be on notice of the possible financial ramifications of Dunbarton withdrawing from the AREA.” Accordingly, the hearing officer recommended that the Board find that Dunbarton remained financially obligated with respect to the high school construction bond. The Board voted to accept the hearing officer’s report and adopted his recommendation. On appeal, Dunbarton argued that RSA chapter 195-A “envisions two possible endings to an area relationship: (1) withdrawal by one party; and (2) expiration of the area agreement. [. . .] only where an area relationship terminates . . . before the end of its term through ‘withdrawal’ that the statute imposes liability for payments on outstanding bond issues” pursuant to statute. Consequently, “[t]he Board unlawfully and unreasonably categorized Dunbarton as a ‘withdrawing’ sending district because Dunbarton never withdrew; instead, the 2004 Contract expired by its terms and with it, any further obligation for Dunbarton to pay Goffstown.” The Supreme Court agreed with Dunbarton's interpretation of RSA 195-A:14, reversed the Board's decision and remanded for further proceedings. View "Appeal of Dunbarton School District" on Justia Law