Washington Law Review


In Chemical Bank v. Washington Public Power Supply System (WPPSS), the Washington Supreme Court invalidated a participants' agreement among municipal corporations for joint development of nuclear power plants. The supreme court held that the agreement was void and unenforceable against Washington cities, towns, and public utility districts because these municipal corporations had no authority to enter into the participants' agreement. This Note examines Chemical Bank and its application of Washington municipal corporation law. The Note briefly identifies Washington municipal corporation law prior to Chemical Bank and considers how Chemical Bank relates to this prior law. The Note then discusses some of the negative impacts the decision will have on municipal corporations, the courts, and the legislature. Finally, the Note concludes with recommendations for legislative and judicial action to limit the scope of Chemical Bank and provide a more reasonable approach to municipal corporation law.

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