Charles Hoefer, the businessman at the center of the Dunseith Debacle, has formally issued a Notice of Intended Litigation against officials in the North Dakota Department of Commerce and the North Dakota Development Fund (NDDF). The notice, dated February 25, 2025, accuses state officials of economic retaliation, financial coercion, and civil rights violations after Hoefer's situation has continued getting more and more convaluted at the facility in Dunseith. He alleges that Commerce officials deliberately misled legislators, obstructed his business operations, and pressured investors to withdraw support.
The legal notice warns that formal litigation will be filed after March 7, 2025, if the targeted defendants do not take corrective action by that time. It also includes a litigation hold notice, requiring state officials to preserve all relevant emails, financial records, and communications related to their handling of Hoefer’s case. Among the most serious claims is the allegation that Commerce and NDDF attempted to force Hoefer to sign a backdated mortgage, a move he argues could have been used against him legally.
This lawsuit could provide the first formal legal examination of Commerce’s role in the controversy, coinciding with growing calls for an independent audit of the department through pending legislation. If filed, the case could bring new transparency to the state’s economic development practices and its treatment of businesses, aside from the possible national implications involved.
Read the letter in full here
