Danis Clarkco Landfill Co. v. Clark County Solid Waste Management District

653 N.E.2d 646, 73 Ohio St. 3d 590
CourtOhio Supreme Court
DecidedSeptember 6, 1995
DocketNo. 94-1047
StatusPublished
Cited by103 cases

This text of 653 N.E.2d 646 (Danis Clarkco Landfill Co. v. Clark County Solid Waste Management District) 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
Danis Clarkco Landfill Co. v. Clark County Solid Waste Management District, 653 N.E.2d 646, 73 Ohio St. 3d 590 (Ohio 1995).

Opinions

Moyer, C.J.

In this case a county solid waste management district solicited proposals for construction of a solid waste disposal facility from private enterprises, in contemplation of thereafter negotiating and entering into a contract pursuant to which the successful bidders would agree to implement their proposals in consideration of the district designating them to be the sole legal recipients of all solid waste of enumerated types generated within the District. The primary legal issue we are called upon to resolve is whether Ohio’s competitive bidding law applicable to counties, as set forth in R.C. 307.86 et seq., bars a county solid waste management district from selecting providers of solid waste disposal through the use of an RFP-negotiation process.

We resolve this inquiry in the negative, as did the court of appeals. We further agree with the court of appeals that the District is under a legal obligation to deal in good faith with bidders participating in its RFP process and must comply with the terms and obligations it set forth in its RFP document. .The court of appeals erred, however, in holding that the District had voluntarily committed itself to strictly follow all provisions of Ohio’s competitive bid statutes as interpreted by case law, and further erred in reversing the trial court’s holding that Danis had failed to prove fraud or bad faith on the part of the District. We therefore remand this cause with instructions that the injunction entered in compliance with the judgment of the court of appeals be vacated.

Solid Waste Disposal Statutory Framework

Effective June 24, 1988, the General Assembly enacted Am.Sub.H.B.No. 592 (“H.B. 592”) (142 Ohio Laws, Part III, 4418), thereafter codified in, inter alia, R.C. Chapters 343 and 3734. H.B. 592 constituted comprehensive legislation establishing statewide solid and hazardous waste management policies and programs. It vested the Director of Environmental Protection with wide-ranging authority to adopt rules governing solid waste facilities and mandated each county to either create a county solid waste management district (“SWM district”) or participate in a joint county solid waste management district. Where a county SWM district is created, as in the case sub judice, the members of the county board of commissioners also serve as members of the board of directors of the SWM district. R.C. 3734.52(A). Each county SWM district is required to prepare and implement a ten-year county solid waste management plan which must be submitted to and approved by the Director. R.C. 3734.54(A). Thereafter, each district is responsible for implementing the plan in compliance with schedules contained in the approved plan. R.C. 3734.55(C)(4). In the event that a SWM district materially fails to implement its approved plan, the Director must issue an enforcement order directing the district to comply with the implementation schedule in the plan within a specified reasonable time. R.C. 3734.13(A) and [597]*5973734.55(E). Where such an order is disregarded, the Director may request the Attorney General to bring a- civil action for appropriate relief, including a temporary restraining order, preliminary or permanent injunction and civil penalties. R.C. 3734.13(C).

In addition, the statutory framework provides a method of private enforcement by which any person aggrieved or adversely affected by an alleged violation of R.C. Chapter 3734, including violations of approved SWM plans, may commence a legal action in the- court of common pleas in the county where the alleged violation occurred. R.C. 3734.101(A) and (E). Such an action is contingent, however, upon the potential plaintiff first giving the Director one hundred fifty days’ written notice of the alleged violation, during which time the Director is authorized to issue an enforcement order. In the event the Director issues an enforcement order within the one-hundred-fifty-day period, the contemplated private action is barred. R.C. 3734.101(B) and (C)(1).

H.B. 592 contemplated the inclusion of “flow-control provisions” in district SWM plans by which each district must “designate” the facility or facilities to which wastes generated within its boundaries must be taken. Such a designation is of value to solid waste disposal providers in that it ensures the receipt of a steady stream of solid waste, and thus guarantees the designated provider a stable revenue source. The legislation expressly prohibited the delivery of any solid wastes generated within a county to any facility other than those designated in the county’s SWM plan, providing, “[n]o person, municipal corporation, township, or other political subdivision shall deliver, or cause the delivery of, any solid wastes generated within a county or joint district to any solid waste transfer, disposal, recycling, or resource recovery facility other than the facility designated in the solid waste management plan or amended plan of the district approved under section 3734.55 or 3734.56 of the Revised Code.” Former R.C. 343.01(H)(2).1 In addition, a SWM district is statutorily authorized to enter into contracts with private waste disposal service providers “for the furnishing to the district * * * of solid waste collection, storage, transfer, disposal, recycling, processing, or resource recovery services.” R.C. 343.02. The relevant statutes in R.C. Chapter 343 are silent regarding the issue of whether such contracts and designations are subject to statutory competitive bidding requirements.

[598]*598 Alleged Mootness

Danis contends that this action should be dismissed as moot in light of the decision of the Supreme Court of the United States in C & A Carbone, Inc. v. Clarkstown (1994), 511 U.S. -, 114 S.Ct. 1677, 128 L.Ed.2d 399. In Carbone the court invalidated a flow-control ordinance enacted by the town of Clarkstown, New York, as violative of the Commerce Clause of Section 8, Article I of the United States Constitution. Danis argues that R.C. 343.01(I)(2), formerly (H)(2), which authorizes SWM districts to adopt exclusive flow-control designations, is similarly unconstitutional. In effect, Danis argues that the appeal is moot in that, in light of Carbone, the District will be unable to legally comply with future contractual obligations to enforce a designation of the proposed OM-Ohio Edison incinerator as the sole repository of non-compostable, non-recyclable solid wastes generated within the District.

Initially, it may be noted that an injunction precluding execution of any contract between the District and OM has been issued by the common pleas court. So long as that injunction remains in effect, a real, justiciable controversy exists between the parties which is neither merely academic nor abstract. See State ex rel. Eliza Jennings, Inc. v. Noble (1990), 49 Ohio St.3d 71, 74, 551 N.E.2d 128, 131, citing Miner v. Witt (1910), 82 Ohio St. 237, 238-239, 92 N.E. 21, 22.

Secondly, we note that Danis did not raise constitutional issues concerning the District’s actions in the courts below, and we therefore deem any constitutional objections it might have raised based on the Commerce Clause of the United States Constitution to have been waived.

Thirdly, acceptance of Danis’s argument would result in an implicit finding by this court that the Clark County Solid Waste Management District could adopt no designation or flow-control resolution consistent with the Commerce Clause.

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Bluebook (online)
653 N.E.2d 646, 73 Ohio St. 3d 590, Counsel Stack Legal Research, https://law.counselstack.com/opinion/danis-clarkco-landfill-co-v-clark-county-solid-waste-management-district-ohio-1995.