EcoHub, LLC v. Recology Inc.

CourtDistrict Court, N.D. California
DecidedApril 23, 2025
Docket3:22-cv-09181
StatusUnknown

This text of EcoHub, LLC v. Recology Inc. (EcoHub, LLC v. Recology Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
EcoHub, LLC v. Recology Inc., (N.D. Cal. 2025).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 ECOHUB, LLC, Case No. 22-cv-09181-TSH

8 Plaintiff, ORDER GRANTING DEFENDANT 9 v. NORTECH WASTE, LLC’S MOTION FOR SUMMARY JUDGMENT; 10 RECOLOGY INC., et al., GRANTING DEFENDANT RECOLOGY INC.’S MOTION FOR 11 Defendants. SUMMARY JUDGMENT

12 Re: Dkt. Nos. 85, 88

13 14 I. INTRODUCTION 15 Pending before the Court is a motion for summary judgment brought by Defendant 16 Nortech Waste, LLC (“Nortech”) (ECF No. 85) and a motion for summary judgment brought by 17 Defendant Recology Inc. (ECF No. 88).1 Plaintiff EcoHub LLC filed an Opposition to Nortech’s 18 motion (ECF No. 96) (Opp’n to Nortech Mot.) and an opposition to Recology’s motion (ECF No. 19 98) (Opp’n to Recology Mot.). Nortech and Recology each filed a Reply (ECF Nos. 107 and 108, 20 respectively). The Court held an in-person hearing on January 30, 2025 and now issues this order. 21 For the reasons stated below, the Court GRANTS Nortech’s motion and GRANTS Recology’s 22 motion.2 23 1 For precision’s sake, citations herein are to the unredacted versions of Nortech’s motion and 24 separate statement of facts (ECF Nos. 84-1; 84-2), Recology’s motion and separate statement of facts (ECF Nos. 87-1; 87-2), Plaintiff’s opposition to Nortech’s motion (ECF No. 94-2), Plaintiff’s 25 opposition to Recology’s motion (ECF No. 97-1), and the parties’ declarations and exhibits in support of their respective motions, which were filed under seal. Most sections of these 26 documents cited within this order can be found in redacted versions the parties filed on the public docket. See ECF Nos. 85 (Nortech’s redacted Mot. for Summ. J.); 88 (Recology’s redacted Mot. 27 for Summ. J.); 96 (Plaintiff’s redacted opposition to Nortech’s motion); 98 (Plaintiff’s redacted 1 II. BACKGROUND 2 Plaintiff EcoHub is a Texas limited liability company founded and operated by George 3 Gitschel. Third Am. Compl. (“TAC”) ¶ 10, ECF No. 41, Pl.’s Resp. to Recology’s Separate 4 Statement of Material Facts (“SSMF”), Fact No. 1.3 Defendant Recology is a California 5 corporation based in San Francisco, CA (Pl.’s Resp. to Recology SSMF, Fact No. 12), and 6 Defendant Nortech is a California limited liability company based in Nevada City, CA. TAC ¶ 7 12. Recology is one of three members of Nortech, each of which is a 33.3% minority owner with 8 the right to appoint one of three directors on Nortech’s Board of Directors (“Board”). Pl.’s Resp. 9 to Recology SSMF, Fact No. 7; Recology Answer to TAC ¶ 47, ECF No. 57. 10 Recology “owns operating companies in the waste industry and oversees their operations 11 at landfills and material recovery facilities.” Pl.’s Resp. to Recology SSMF, Fact No. 13. The 12 Western Placer Waste Management Authority (“WPWMA”) is a public agency that owns a 13 material recovery facility (“MRF”) in Placer County, California. Id., Fact Nos. 9, 14. Nortech 14 was created for the sole purpose of operating WPWMA’s MRF. Id., Fact No. 9. In 2019, Nortech 15 had a contract with WPWMA to manage and operate WPWMA’s waste management facility in 16 Placer County, California. Id., Fact Nos. 9, 14, 17. The contract between WPWMA and Nortech 17 was scheduled to expire on June 30, 2022. Id., Fact No. 17. 18 Nortech became involved with EcoHub in spring 2019, after Nortech had begun preparing 19 to seek a contract extension for the WPWMA MRF. Id., Fact No. 18. In May 2019, Nortech’s 20 Vice President and General Manager Paul Szura advised Nortech President Stephanie Trewhitt 21 about EcoHub’s interest in working with Nortech to submit a proposal for an extension of 22 Nortech’s contract to operate the MRF. Id., Fact Nos. 11, 19.4 In April 2020, Trewhitt informed 23 the Nortech Board that she had been working with EcoHub. Id., Fact No. 21. EcoHub’s majority 24 12, 14, 15. 25 3 At the January 30, 2025 summary judgment hearing, Plaintiff confirmed that it has limited the scope of its claims and period at issue from the allegations Plaintiff made in the operative Third 26 Amended Complaint (“TAC”). The Court primarily cites undisputed facts based on Plaintiff’s responses to Nortech’s and Recology’s separate statements of material facts. ECF Nos. 96-5; 98- 27 1. Plaintiff did not submit a separate statement of material facts. 1 owner, founder and CEO, George Gitschel, has and has always had sole authority to make binding 2 decisions on behalf of EcoHub. Id., Fact Nos. 2, 4. 3 On April 28, 2020, Gitschel emailed Trewhitt a letter summarizing EcoHub’s proposal to 4 be presented to the Nortech Board at the May 4, 2020 Board meeting. Id., Fact No. 24. After 5 EcoHub presented its proposal, the Nortech Board directed “Nortech staff to ask WPWMA staff to 6 present to the WPWMA Board said proposal.” Pl.’s Resp. to Nortech SSMF, Fact No. 8. 7 The Waste Supply Agreement or Waste Supply Service Agreement (“WSA”) was a 8 proposed contract setting forth terms to which Nortech and EcoHub were contemplating agreeing. 9 Pl.’s Resp. to Nortech SSMF, Fact No. 9. Plaintiff alleges that in the event WPWMA extended 10 Nortech’s contract, Nortech would have received $10 per ton of municipal solid waste or recycled 11 paper and cardboard processed at the MRF, plus cost-of-living increases. TAC ¶ 19. EcoHub 12 would have received all remaining profits from the operation of the facility. Id. None of the 13 WSAs were ever finalized. Pl.’s Resp. to Nortech SSMF, Fact No. 10. 14 On June 5, 2020, Nortech and EcoHub submitted their proposal for an amended and 15 extended contract to the WPWMA. Pl.’s Resp. to Recology SSMF, Fact No. 31. Nortech and 16 EcoHub delivered an in-person presentation to WPWMA’s Technical Advisory committee on 17 August 12, 2020 in support of their effort to obtain an amended and extended Nortech contract. 18 Id., Fact No. 33; Pl.’s Resp. to Nortech SSMF, Fact No. 15. The presentation included 19 PowerPoint slides that were “edited and approved by Nortech in advance.” Pl.’s Resp. to Nortech 20 SSMF, Fact No. 15. On September 4, 2020, Nortech sent a revised contract extension proposal 21 involving EcoHub to the WPWMA. Id., Fact No. 19. 22 On September 17, 2020, Trewhitt presented the revised Nortech contract extension 23 proposal to WPWMA. Id., Fact No. 21. On September 17, 2020, WPWMA’s Board voted 5-0 to 24 issue a Request for Proposal (“RFP”), rather than continuing discussions with Nortech about a 25 contract extension. Id., Fact Nos. 22–23. That same day, after learning about WPWMA’s 26 decision to issue an RFP, Gitschel emailed Trewhitt to ask if Nortech would be interested in 27 submitting a joint proposal in response to the RFP. Pl.’s Resp. to Recology SSMF, Fact No. 36. 1 Nortech SSMF, Fact No. 23. On September 18, Trewhitt responded that “Nortech[’s] members 2 are going to review the RFP . . . and then we will have a board meeting on Sept. 29th to discuss 3 how to move forward[.]” Id. Trewhitt continues that Nortech “is owned by 3 equal partners and I 4 have to respect how they want to move forward.” Id. On September 19, Gitschel responded:

5 Does this answer clear things up for you? The answer is a resounding “NO” on partnering in the future with you or Nortech! What you need 6 to do is to take a good long look in the mirror and know with CONVICTION that YOU are 100% RESPONSIBLE for LOSING 7 this deal for Nortech. This is the result of your 100% CONTROL and ACTIONS. Own that accountability for the rest of your waking days. 8 Now, go back up to the beginning of this email and read the dark character traits. Get out that same mirror and know that is you. 9 10 Id. (emphases in original). In his response to Trewhitt, Gitschel further stated that “Recology and 11 Sexton . . . hindered us from getting this extension by controlling everything you said and how 12 Nortech handled the entire deal” and stated:

13 Recology capitalized on your fear and inexperience to kill this deal. They made you silence me, when it really counted.

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EcoHub, LLC v. Recology Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/ecohub-llc-v-recology-inc-cand-2025.