Graphic Packaging Int'l, Inc. Rock-Tenn Converting Co. and Cathy Weinmann v. City of Indianapolis and the City of Indianapolis Public Works

51 N.E.3d 423, 2016 Ind. App. LEXIS 48, 2016 WL 742691
CourtIndiana Court of Appeals
DecidedFebruary 24, 2016
Docket49A04-1504-PL-165
StatusPublished
Cited by1 cases

This text of 51 N.E.3d 423 (Graphic Packaging Int'l, Inc. Rock-Tenn Converting Co. and Cathy Weinmann v. City of Indianapolis and the City of Indianapolis Public Works) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Graphic Packaging Int'l, Inc. Rock-Tenn Converting Co. and Cathy Weinmann v. City of Indianapolis and the City of Indianapolis Public Works, 51 N.E.3d 423, 2016 Ind. App. LEXIS 48, 2016 WL 742691 (Ind. Ct. App. 2016).

Opinion

BAKER, Judge.

[1] In 2012, the City of Indianapolis amended a contract with the company that provides city residents with waste disposal services. The amendment went above and beyond the provisions of services, however, as it required the construction and maintenance of a $45 million facility. By including provisions related to the design, construction, and maintenance of this new facility, the amendment fell under the purview of section 4 of the Waste Disposal Statute, which requires, among other things, public bidding and public participation in the process. That did not occur. Therefore, the contract is void for failing to comply with the statute.

[2] Graphic Packaging International (Graphic Packaging), Rock-Tenn Converting Co. (Rock-Tenn), and Cathy Wein-mann (collectively, the Plaintiffs) appeal the trial court’s order granting summary judgment in favor of the City of Indianapolis (the City) and the City of Indianapolis Board of Public Works (the Board) (collectively, the Government) on the Plaintiffs’ complaint against the City. The Plaintiffs argue that the trial court erred by concluding that:

(1) there is no private right of action to raise these claims against the City under
(a) the Waste Disposal Statute; 1
(b) the Public Lawsuit Statute; 2 or
(c) the Uniform Declaratory Judgment Act; 3
(2) the Plaintiffs do not have standing under
(a) traditional standing analysis; or
(b) the public standing doctrine; and
(3) the contract at issue does not violate the Waste Disposal Statute.

We find that the Plaintiffs have a right of action under the Waste Disposal Statute, that they have standing under the public standing doctrine, and that the contract at issue violates the Waste Disposal Statute as a matter of law. Therefore, we find that the trial court erred by awarding summary judgment in favor of the Government, reverse that judgment, and remand with instructions to enter summary judgment in favor of the Plaintiffs.

*425 Facts 4

[3] In late 1985, the City entered into a contract (the Original Agreement) with Massburn, Inc., the predecessor of Covan-ta Indianapolis, Inc. (Covanta), for the disposal of solid waste through waste-to-energy incineration technology. As part of the Original Agreement, Covanta agreed to receive and dispose of all acceptable solid waste provided to it by the City. The service was to be performed at a facility designed, constructed, owned, maintained, and operated by Covanta. Construction of the facility began in 1985, and it was fully operational in 1989.

[4] In 2008, the City and Covanta amended the Original Agreement (the First Amendment). The First Amendment extended the term of the contract until 2018, with two optional five-year extensions available. The First Amendment also required the City to deliver a certain volume of waste to Covanta or pay a penalty (a “put or pay” contract).

[5] On August 6, 2014, the Government approved another amendment to the Original Agreement (the Second Amendment). The Board did not hold a public meeting or follow a public bidding process before approving the Second Amendment. Among other things, the Second Amendment makes the following changes to the Original Agreement:

• Covanta is entitled to design, construct, and operate an advanced materials recovery center (the ARC Facility) for the recovery of certain materials from the waste stream that may be suitable for recycling.
• Covanta has exclusive right to the City’s waste for another ten years, extending the contractual term to December 31, 2028.
• There is no minimum recyclable recovery requirement on Covanta.
• There is no longer a “put or pay” provision in the agreement.
• The City must pay 70% of Covanta’s taxes for the ARC Facility, up to $4 million.
• If the City were to expand its clean recycling options, it would face significant liquidated damages.
• If the current subscription curbside recycling program were to collect 5% more recyclables per year than the year prior to the opening of the ARC Facility, then the City’s portion of revenue will decrease.
• The City is prohibited from working with the private sector to improve recycling programs for the next fourteen years.

[6] The recyclable materials recovered and processed through the ARC Facility will be subject to a collection method whereby there is no source separation and trash and recyclables are mixed together (Dirty Recycling). In other words, consumers will place all trash and all recyclables into the same collection containers; the materials collected will then be sorted at the ARC Facility into recyclables and non-recyclables. Dirty Recycling results in a significantly higher rate of recovered materials that are not suited for use in manufacturing recycled materials than a program that does not mix recyclables with trash (Clean Recycling). Furthermore, glass will not be recovered for recycling at the ARC Facility. Waste that is not separated for recycling will be incinerated; the resulting ash will be sent to a landfill.

[7] Graphic Packaging and Rock-Tenn (collectively, the Recycling Companies) are *426 corporations engaged in the business of manufacturing and selling paperboard and folding cartons. The Recycling Companies purchase recycled paper and paperboard for the manufacture of their products. These companies will not be purchasing recycled material originating from the ARC Facility, as the material will not meet quality specifications due to contamination. In other words, the ARC Facility will reduce the amount of materials in the market that meet their needs. Rock-Tenn potentially would have bid on or responded to a Request for Proposal for a recyclables recovery facility for the City if the City had followed public bidding procedures. The final plaintiff, Cathy Weinmann, is a citizen of Indianapolis.

[8] On September 5, 2014, the Plaintiffs filed a complaint against the Government, challenging the validity of the Second Amendment and the procedure by. which it was awarded. The Government filed a motion to dismiss and for summary judgment; the plaintiffs objected to dismissal and filed a cross-motion for summary judgment. Following briefing and oral argument, the- trial court granted summary judgment 5 in favor of the Government on April 6, 2015.

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51 N.E.3d 423, 2016 Ind. App. LEXIS 48, 2016 WL 742691, Counsel Stack Legal Research, https://law.counselstack.com/opinion/graphic-packaging-intl-inc-rock-tenn-converting-co-and-cathy-weinmann-indctapp-2016.