POCATELLO, Idaho — A recent ruling from the Idaho Supreme Court has revived a $21 million lawsuit against the city of Pocatello, alongside private developers involved in the Northgate project. This decision overturns a 2023 dismissal made by District Judge Robert C. Naftz, allowing the lawsuit filed by the Rupp family to move forward.
The Supreme Court’s ruling indicated that Judge Naftz failed to adequately consider the city’s motions and did not permit the Rupp family the chance to present their counterarguments. The court expressed concern that the judge’s lack of thorough analysis could have unjustly penalized the family’s attorney, Nathan Olsen, for a late filing. The justices noted that a hearing on the summary judgment merits never took place, with proceedings being contingent on other motions instead.
In its decision, the high court reversed the earlier dismissal, nullified the attorney fee ruling in favor of the defendants, and directed the case back to the district court for further proceedings. The ruling emphasized the need for a complete examination of the issues raised in the lawsuit.
At the heart of the lawsuit are allegations of conspiracy involving Pocatello Mayor Brian Blad, real estate developers Ken Pape and Arvil Swaney, along with their companies, Portneuf Development LLC and Millennial Development Partners LLC. The Rupp Family Trust, which oversees a 930-acre agricultural parcel east of the Northgate Interchange, claims that city officials and private developers conspired to block their access to land and lower water rates.
The trust asserts that it entered into a purchase agreement with Millennial Development Partners in 2017 for a strip of land to facilitate the construction of Northgate Parkway. It is alleged that this agreement included provisions for the construction of an intersection to provide access to the Rupp’s property, as well as necessary water and sewer lines.
According to the lawsuit, the developers and the city formed a partnership that sought to use the water rights associated with the trust’s land to devalue it, enabling them to purchase it at a reduced price and sell it for profit. The trust claims that after it annexed a portion of its estate into Chubbuck for better access to water, the Northgate Partnership systematically blocked access points to their property.
Further complicating the issue, the Rupp family alleges that the development team failed to construct the promised infrastructure, effectively locking them out of their property. The trust claims interference from the Northgate Partnership in negotiations with potential buyers for their land.
In a twist, the lawsuit details that after the Northgate Parkway was completed in 2019, there were attempts to transfer ownership of adjacent strips of land to the developers, inadvertently cutting off direct access to the Rupp property.
On Feb. 4, 2022, the Rupps formally filed their complaint alleging various grievances, including breach of contract and intentional interference with economic advantage. The case has garnered attention, with statements from both the Rupp family and city officials reflecting contrasting viewpoints on the legitimacy of the claims.
Rupp family attorney Nathan Olsen expressed satisfaction with the Supreme Court’s ruling, stating it assures that the family will have their day in court. Meanwhile, Mayor Blad reaffirmed the city’s position, maintaining confidence that the facts will substantiate that the city acted appropriately.
No additional court dates have been announced as the case returns to the district court for further proceedings.
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