American Waste v. Sanitary Landfill Com'n

578 So. 2d 541, 1991 WL 57830
CourtLouisiana Court of Appeal
DecidedApril 17, 1991
Docket89-1072
StatusPublished
Cited by10 cases

This text of 578 So. 2d 541 (American Waste v. Sanitary Landfill Com'n) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Waste v. Sanitary Landfill Com'n, 578 So. 2d 541, 1991 WL 57830 (La. Ct. App. 1991).

Opinion

578 So.2d 541 (1991)

AMERICAN WASTE AND POLLUTION CONTROL COMPANY, Plaintiff-Appellant,
v.
JEFFERSON DAVIS PARISH SANITARY LANDFILL COMMISSION, Defendant-Appellee.

No. 89-1072.

Court of Appeal of Louisiana, Third Circuit.

April 17, 1991.
Writ Denied June 14, 1991.

*542 Onebane, Donohoe (John G. Torian, II, Mack A. Ackal, John Keller), Lafayette, for plaintiff-appellant.

Millican, Miller, Andre Buisson, Jennings, for defendant-appellee.

Before DOMENGEAUX, C.J., and DOUCET and LABORDE, JJ.

LABORDE, Judge.

This is an appeal from a judgment vacating a temporary restraining order and denying a request for a preliminary injunction filed by plaintiff, American Waste and Pollution Control Company (American Waste) against defendant, Jefferson Davis Parish Sanitary Landfill Commission (Commission). We find no error in the judgment of the trial court. We affirm.

FACTS

The Commission was created on March 24, 1984, and is comprised of two representatives from the Jefferson Davis Parish Police Jury, two representatives from the City of Jennings and one representative each from the towns of Welsh and Lake Arthur. The Commission is vested with the power to construct and operate a sanitary landfill for Jefferson Davis Parish.

On June 4, 1986, the Commission received a permit issued by the State of Louisiana, Department of Environmental Quality (DEQ) to construct and operate a landfill facility on a 217 acre site northwest of the Town of Welsh. In the summer of 1987, the Commission solicited bids to lease the facility. American Waste was the only company to submit a bid. Browning-Ferris Industries (BFI) was also invited to submit a bid to lease the facility, but declined to do so for the stated reason that it was not willing to assume certain risks associated with the lease of the facility. The Commission approved American Waste's bid and submitted it to the member governmental bodies for their approval. The City of Jennings and the Town of Lake Arthur approved the proposed lease; however, the Town of Welsh rejected it. Since the Commission's charter required unanimous acceptance by every governmental body, the Jefferson Davis Parish Police Jury tabled the issue.

Not long after this issue was tabled, the Commission began discussing with American Waste the option of having American Waste operate and maintain the landfill as an employee of the Commission. These discussions resulted in the execution of an Operating and Maintenance Agreement (Long-term Agreement) on November 5, 1987, between the Commission and American Waste. It is important to note that this Long-term Agreement was executed over the objection of representatives from the Town of Welsh.

Although the Long-term Agreement was executed on November 5, 1987, American Waste's obligation to maintain and operate the landfill was not to begin until certain modifications to the permit had been approved by DEQ. These modifications included: (1) increasing the height of the landfill, (2) increasing the area utilized for the disposal of the waste of the landfill, and (3) allowing waste from outside the parish into the landfill. As the time delay for obtaining the permit modifications was far from certain, the Commission and American Waste entered into an Interim Agreement. The Interim Agreement provides, among other things, that prior to the permit modifications being approved by DEQ, American Waste is authorized to place, compact and cover solid waste received *543 at the facility and to operate the entry gate and scale. The Interim Agreement also provides that American Waste is to be compensated in an amount equal to the total of all user fees. Of paramount importance to this litigation is the clause appearing on the final page of the Interim Agreement which reads as follows:

"Either party to this agreement shall have the right to terminate this agreement upon giving fifteen (15) days written notice to the other party."

There are no conditions attached to this right to terminate the Interim Agreement.

In early 1988, the Town of Welsh filed suit against the Commission seeking to have both the Interim Agreement and the Long-term Agreement declared null and void. American Waste intervened in the suit, joining the Commission in defending the validity of both of the agreements. Shortly after suit was filed, the parties entered into settlement negotiations. In January of 1989, a proposed settlement agreement had been reached by the parties. Before the proposal was submitted to the Police Jury for its approval, however, BFI and Jefferson Davis Parish Solid Waste, Inc., submitted proposals to lease the landfill facility. With the submission of these other proposals, the Police Jury chose not to accept the proposed settlement agreement.

The record establishes that a private meeting was held at the offices of then Mayor Elect for the City of Jennings, Greg Marcantel, on April 18, 1989. Although the details of this meeting are sketchy, it is apparent that Mr. Marcantel expressed his concern that the landfill was becoming financially burdensome on the City of Jennings. Mr. Marcantel stated at trial that getting the Town of Welsh to agree to allow waste from outside the parish into the landfill was critical to the financial success of the operation. American Waste alleges that the Mayor of the Town of Welsh, Charles L. Bull, Jr., then struck a political deal with Mr. Marcantel offering to support the admission of outside waste into the landfill, only if American Waste was given its fifteen day notice of termination. On the evening of April 18th, the Welsh Town Council met. At the meeting, Council Member Carson Watkins made a motion to accept waste from outside the parish and for renegotiation of the Interim Agreement. The motion carried. The next night, April 19th, the Commission met. During the course of that meeting a motion to terminate the Interim Agreement was made by Welsh Commissioner, Robert Louviere. The motion was seconded and carried. Later that evening a motion was made to have Eugene Sellers, the Commission's engineer, prepare a proposal which would be made available to other prospective interim operators. This motion also passed.

After receiving the Commission's notice to terminate the Interim Agreement, American Waste filed for and was granted a temporary restraining order on May 1, 1989. The order prevented the Commission from permitting any other party from operating or maintaining the landfill; however, it did not prevent the Commission from receiving bids. The temporary restraining order was extended on May 11th and again on May 19th, and, by agreement by both Counsel, a Joint Motion to Continue Temporary Restraining Order, preserved the order until the hearing on the preliminary injunction. On May 30, 1989, judgment in the Town of Welsh's suit against the Commission was rendered declaring the Interim and Long-term Agreements between the Commission and American Waste to be null and void and of no effect. American Waste appealed from that decision on June 21, 1989. This court affirmed the trial court's ruling in that case in our docket number 89-913, reported at 576 So.2d 1112 (La.App. 3d Cir.1991) and rendered on March 13, 1991.

On June 30, 1989, the Commission met and requested that American Waste and BFI submit their final proposals. The Commission met again on July 7, 1989, and voted unanimously to accept the proposal presented by BFI.

A hearing on American Waste's motion for preliminary injunction was held on July 25 and 26, 1989. For reasons given in open *544

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