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Even 40 Years After Signing a Contract, it Is the Law at the Time the Contract is Signed That Governs

In the case of City of Oberlin v. Lorain Cty. Joint Vocational School Dist. Bd. of Edn., 9th Dist. Lorain County No. 18CA011338, 2019-Ohio-3977, an Ohio appellate court held that the law at the time of the contract will be binding on parties, even if the contract was signed 40 years ago.

In this case, a city and a joint vocational school district (“JVS”) entered into a contract where the city would extend a sewer line to JVS and JVS would sign an annexation petition from the city if one was presented.  After nearly 40 years, the city presented JVS with an expedited annexation petition.  The JVS refused to sign and instead filed a traditional annexation petition, which would bar the city from collecting municipal taxes from employees.

The Ohio appellate court looked to the law at the time of contract’s formation and determined that no expedited process existed at the time.  The contract did not impose any further obligations or restrictions on the parties about annexation and, thus, JVS was free to file the traditional annexation petition.

To read this case, click here.

Authors: Matthew John Markling and the McGown & Markling Team.

Note: This blog entry does not constitute – nor does it contain – legal advice. Legal jurisprudence is always changing like the Midwestern weather. As a result, this single blog entry cannot substitute for consultation with a McGown & Markling attorney. If legal advice is needed with respect to a specific factual situation, please feel free to contact a McGown & Markling attorney.

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