§ 40-25-07 — Measure of damages when negligence of taxing district shown

If it is shown that any municipality or other taxing district has been guilty of negligence
which will amount to a breach of its duty to holders of special assessment warrants, such
municipality or taxing district shall be liable in damages to the holders of the special assessment
warrants. Such damages, however, shall be limited to the actual damages sustained by the
warrant holder or holders as the direct and proximate result of such negligence. If the damage
for negligence is predicated upon any act of the municipality or other taxing district which
resulted in the loss of any special assessment lien upon real property, the measure of damages

shall be limited to the value at the time of trial of the property upon which the lien was lost over
and above the amount of the general taxes delinquent against such property at the time that the
county acquired title thereto. The face amount of the warrants involved in any action shall be
considered only as a limitation of the amount which may be recovered in such action on said
special assessment warrants.