The Nagoya High Court on Thursday nullified a lower court decision to dismiss a lawsuit filed by a group of residents seeking to stop the Mie Prefectural Government from spending tax money to repay debts incurred by the construction of the controversial Nagara River Dam.
The high court ordered the Tsu District Court, which rejected the lawsuit in January, to hold a new hearing on the case.
The plaintiffs, a group of 10 residents who had opposed the construction project, filed the suit with the district court in February 1999, saying it is illegal for the prefectural government to use public funds to pay back money spent on the dam, which is "useless" to local taxpayers.
Despite strong protests by residents and environmentalists, the dam was completed in March 1995 and began operation in May that year.