City of St. Marys v. Auglaize County Board of Commissioners

875 N.E.2d 561, 115 Ohio St. 3d 387
CourtOhio Supreme Court
DecidedOctober 3, 2007
DocketNo. 2006-1033
StatusPublished
Cited by122 cases

This text of 875 N.E.2d 561 (City of St. Marys v. Auglaize County Board of Commissioners) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of St. Marys v. Auglaize County Board of Commissioners, 875 N.E.2d 561, 115 Ohio St. 3d 387 (Ohio 2007).

Opinions

Lundberg Stratton, J.

I. Introduction

{¶ 1} This case involves a dispute arising out of an agreement between a county and city for managing the disposal of solid waste. We accepted the county’s three propositions that pertain to the interpretation of the agreement. We also accepted the issue whether a county’s fiscal officer had to comply with R.C. 5705.41(D)(1), which requires the county to certify the availability of public funds before the county could agree to pay for the environmental monitoring of the city’s landfill pursuant to the agreement.

{¶ 2} For the reasons explained below, we find in favor of the city with regard to the contractual dispute. We also hold that the county’s contractual obligation to pay for the environmental monitoring of the landfill was excepted from the certification requirements of R.C. 5705.41(D) by R.C. 5705.44. Consequently, we affirm the judgment of the court of appeals in favor of the city.

[388]*388II. Facts and Procedure

{¶ 3} Appellant is the Auglaize County Board of Commissioners (“county”). Appellee is the city of St. Marys, Ohio. The city owns and operates a landfill for disposing of solid waste.

{¶ 4} Effective June 24, 1988, Am.Sub.H.B. No. 592, 142 Ohio Laws, Part III, 4418, established statewide policies for the management of solid and hazardous waste. Danis Clarkco Landfill Co. v. Clark Cty. Solid Waste Mgt. Dist. (1995), 73 Ohio St.3d 590, 596, 653 N.E.2d 646. The bill enacted R.C. 3734.52, which requires each county in Ohio to either form a single-county solid-waste-management district (“SWMD”) or participate in a joint solid-waste-management district for the purpose of “orderly development of the solid waste management planning.” Section 6(C)(1), Am.Sub.H.B. No. 592, see also Fairfield Cty. Dist. Bd. of Health v. Shank (May 23, 1991), 10th Dist. No. 90AP-1176, 1991 WL 96362. In order to maintain a single-county SWMD, a county with a population under 120,000 was required to acquire an exemption from the Ohio Environmental Protection Agency (“EPA”) under R.C. 3734.52(C)(2). In order to obtain this exemption, the county had to demonstrate that it had access to a solid-waste-disposal facility with sufficient capacity to accept the county’s solid waste for at least ten years. R.C. 3734.52(C)(2).

{¶ 5} Auglaize County desired to form a single-county SWMD, and because it had a population of less than 120,000, it needed an R.C. 3734.52(C)(2) exemption. On December 22, 1988, the county executed an agreement with the city that permitted the county to dispose of its solid waste in the city’s landfill. In return, the county agreed to pay for the environmental monitoring of the city’s landfill. The term of the agreement was 12 years.

{¶ 6} On February 17, 1989, the EPA approved the county’s exemption, and the county formed the Auglaize County Solid Waste Management District. The county commissioners served as the board of directors for the district as required by R.C. 343.01.

{¶ 7} The policy committee of the district completed its initial plan for solid-waste management in early 1992. The plan set fees and proposed various plans and activities associated with the management and disposal of solid waste, such as the construction of a recycling center.

{¶ 8} In the early to mid 1990s, it became apparent that the city either had to expand or close the landfill. Ultimately, the city closed the landfill in June 1998. Nevertheless, the county continued to pay the costs of environmental monitoring of the landfill through December 2000.

{¶ 9} The city, which claimed that the county was obligated to pay all environmental-monitoring expenses during the 12-year term of the agreement [389]*389and for 30 years after the landfill closed, sued the county for breach of the agreement after the county stopped paying for the monitoring of the landfill. The parties filed cross-motions for partial summary judgment. The trial court granted partial summary judgment to the city, holding that the agreement obligated the county to pay for postclosure monitoring of the landfill for 30 years even though the agreement had terminated.

{¶ 10} The parties then filed cross-motions for summary judgment on the remaining issues. The county argued that it was not obligated to pay for the monitoring, because the city had breached the agreement by failing to set aside a portion of its gate fees into a fund to pay in part for the monitoring costs. (Gate fees were the fees charged by the city for the disposal of solid waste at the landfill.) The court again recognized that the agreement required the county to pay for the monitoring, but it held that the city’s failure to set aside a portion of its gate fees resulted in a breach of the contract that relieved the county of its obligation to pay for monitoring. Thus, the court granted summary judgment to the county and dismissed the city’s complaint.

{¶ 11} The city appealed. The court of appeals affirmed the trial court’s holding that the county had a duty to pay for postclosure environmental monitoring for 30 years after expiration of the agreement but reversed the trial court’s finding that the city breached the agreement. St. Marys v. Auglaize Cty. Bd. of Commrs., 3d Dist. No. 2-05-17, 2006-Ohio-1773, 2006 WL 903586, ¶ 16, 32. The court of appeals held that the agreement was ambiguous regarding the city’s obligation to contribute to the cost of environmental monitoring but that the parties’ course of conduct gave meaning to the agreement. Id. at ¶ 21, 29. Accordingly, the court reversed and remanded the cause to the trial court to issue summary judgment in the city’s favor.

{¶ 12} The cause is before this court pursuant to our acceptance of the county’s discretionary appeal.

III. Analysis

{¶ 13} We begin our analysis by examining the language of the parties’ agreement.

A. The Agreement

1. The County’s Obligation to Monitor the Landfill Survives Termination of the Agreement

{¶ 14} The county argues that its contractual obligation to pay for the environmental monitoring of the landfill ended when the agreement terminated in 2000. The city counters that the agreement imposes an obligation on the county to pay for postclosure monitoring beyond the termination date of the agreement.

[390]*390{¶ 15} Paragraph 5 of the agreement requires the county to monitor the landfill:

{¶ 16} “Pursuant to this agreement, the County shall:

{¶ 17} “a. as soon as the monitoring program initiated by the City pursuant to paragraph 4(f) * * * is approved by the OEPA, undertake complete responsibility for all environmental monitoring required for the City Site by applicable statutes and regulations, including the operation of such environmental monitoring and any capital expenditures to accomplish the monitoring, both prior to and subsequent to closure of the site.” (Emphasis added.)

{¶ 18} The role of courts in examining contracts is to ascertain the intent of the parties. Hamilton Ins. Servs., Inc. v. Nationwide Ins. Cos. (1999), 86 Ohio St.3d 270, 714 N.E.2d 898.

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Cite This Page — Counsel Stack

Bluebook (online)
875 N.E.2d 561, 115 Ohio St. 3d 387, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-st-marys-v-auglaize-county-board-of-commissioners-ohio-2007.