MN school district seeks $3M from farmer who sued over bonds

A Minnesota school district is seeking nearly $3 million from a farmer who sued to try to invalidate a successful $43 million bond referendum.

Sibley East Public Schools in Gaylord says in a court motion that Nathan Kranz' litigation cost it nearly $3 million and that he failed to put up a $300,000 surety bond as ordered by the judge in the case. The motion says Kranz should be held in contempt and fined to cover the costs to the district and taxpayers arising from the delays in the bond sale.

"It's unfortunate that it got to this place, however Mr. Kranz had numerous opportunities to call it quits," Stephen Knutson, an attorney for Sibley East, told The Free Press of Mankato.

Kranz's lawsuit alleged the district violated legal requirements for publishing timely election notices. The Minnesota Court of Appeals in March affirmed a lower court's ruling that district officials erred but that the mistake was not enough to justify nullifying the referendum. The state Supreme Court in May declined to hear Kranz' appeal.

The district says it originally planned to sell bonds in January, but by the time it did in June, higher interest rates and costs added up to $2.9 million in additional principal and interest.

Kranz' attorney, Erick Kaardal, told The Associated Press on Wednesday that the motion is "frivolous" and that the district missed the deadlines for filing it.

A hearing is set for Nov. 16.