In Re Chambers Development Company, Inc.

148 F.3d 214, 1998 U.S. App. LEXIS 10317, 1998 WL 258387
CourtCourt of Appeals for the Third Circuit
DecidedMay 22, 1998
Docket97-3145
StatusPublished
Cited by183 cases

This text of 148 F.3d 214 (In Re Chambers Development Company, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Chambers Development Company, Inc., 148 F.3d 214, 1998 U.S. App. LEXIS 10317, 1998 WL 258387 (3d Cir. 1998).

Opinions

OPINION OF THE COURT

McKEE, Circuit Judge.

Chambers Development Company, Inc., petitions for a writ of mandamus following our remand in Chambers Development Co., Inc., v. Passaic County Utilities Authority, 62 F.3d 582 (3d Cir.1995) (“Chambers I”). Chambers argues that mandamus is necessary because the district court ignored that mandate. We agree, and will therefore grant a writ of mandamus and remand this matter once again for proceedings consistent with this opinion.

I.

When this matter was initially before us we observed that “[t]he parties and the court ... plunged into a procedural miasma which is virtually impenetrable.” 62 F.3d at 583. The case is now more confused than ever. It has evolved from miasma to a jurisprudential Rubik’s cube, becoming more jumbled at each turn. The dispute arises from a breach of contract action between Chambers and Passaic County Utilities Authority (“PCUA”). We detailed the intricacies leading up to the dispute in Chambers I. We will now summarize the background only insofar as is necessary to resolve the issues raised by the mandamus petition before us.

In 1987, Chambers and PCUA entered into’ a contract for Passaic County’s waste disposal. The contract was divided into three parts: an Agreement for the Grant and Acquisition of a License (“Initial Agreement”); a Long-Term Agreement for the Grant and Acquisition of a License for Ash Residue Waste Disposal (“Long-Term Agreement”); and an Easement and License Agreement. The Initial Agreement governed the rights and duties of the parties from December 1, 1987, until December 1, 1992. The Long-Term Agreement governs the right's and duties of the parties from December 1, 1992 until December 1, 2002.

The Initial Agreement required PCUA to deposit all of its municipal solid waste (“MSW”) in Chambers’ landfills in Pennsylvania and required Chambers to reserve airspace for up to a maximum df 2.25 million tons of MSW in the first five year period. PCUA paid Chambers $51,225,000 in advance for its first period disposal rights. Performance of the Initial Agreement is not in dispute.

The Long-Term Agreement covered ash residue waste and non-processible and bypass solid waste generated by a mass burn incinerator or “resource recovery facility” (“RRF”) that PCUA originally intended to have in place by 1992. However, construction of the RRF was not a condition precedent to either party’s obligations under the Long Term Agreement. The Long-Term Agreement also provided that Chambers’ landfills would serve as the primary disposal site for all solid waste for any period in which the RRF was not in operation. As it happened, the New Jersey Department of Envi[218]*218ronmental Protection and Energy (“NJDEPE”) disapproved PCUA’s proposed construction of an RRF and PCUA has no plans to construct - one in the foreseeable future. However, the only significance of the cancellation of the RRF was that Chambers would be receiving ordinary MSW rather than receiving ash and bypass waste.

New Jersey’s environmental law required that NJDEPE" approve the contract with Chambers. Accordingly, on June 24, 1987, Passaic County adopted Plan Amendment 4-1987 which sought approval of the County’s Plan to:

include the Chambers Development Company, Inc., landfill system in Pennsylvania and other states, to be utilized as primary landfills for the disposal of Passaic County solid waste from 1987 to 1992. In addition, this landfill system is designated under the plan as the primary landfill system for the disposal of ash, bypass and non-processible waste associated with the operation of the resource recovery facility in the City of Passaic from the time the facility is operational until the year 2002.

On September 1, 1987, the" Commissioner of NJDEPE, Richard T. Dewling, certified Pas-saic County’s Plan Amendment 4-1987 in part (hereinafter '“Dewling Certification”). Dewling approved the use of Chambers’ landfills from 1987 through 1992. However, he rejected PCUA’s plan to rely on Chambers’ landfills as 'the primary' sité for waste disposal between 1992 and 2002 because the Plan’s dependence on an out-of-state landfill for long-term solid waste disposal was contrary to Passaic County’s obligation to develop in-county facilities for waste disposal.

Commissioner Dewling explained:

N.J.S.A. 13:lE-21(b)3 places a legal obligation on each district to plan for sufficient available suitable incounty disposal sites____ [T]he only solution to the long-term disposal needs of Passaic County is thé development of in-county facilities or to secure- interdistrict agreement with other New Jersey counties. In light of these 'factors, and [to] the extent that Passaic County has failed to 'meet its planning obligations pursuant to N.J.S.A. 13:1E-21(b)3, the Department cannot approve primary dependence upon out-of-state residual disposal capacity for the period 1993 to 2002.
* * * * * *
Amendment 4-1987 is hereby modified and approved to include within the district plan the designation of the Chambers Development Company, Inc., landfill system to Pennsylvania and other states as a component of Passaic County’s contingency plan for the disposal of ash, by-pass and non-processible waste associated with the operation of the Passaic County resource recovery facility from the time the facility is operational until the year 2002. Further, within forty-five days of the date of this certification, Passaic County is directed to submit the remainder of its solid' waste contingency plan in plan amendment form for state level review in consideration of the Department’s comments of May 7, 4 1987 concerning the county’s draft submission. More specifically, .the remainder of the plan should address in-county residual landfill development, the development of interdistrict agreements on an interim/emergency basis, and the identification of alternate land filling options.

From 1987 through 1992, PCUA utilized Chambers’ landfills as Passaic County’s primary solid waste disposal site in accordance with the fully approved Initial Agreement. Apparently, during most of the,period of the Initial Agreement, Passaic County never proposed any subsequent plan amendment or attempted to remedy the deficiency identified by Commissioner Dewling. Consequently, PCUA had no in-state primary plan to present to NJDEPE despite the approach of the end of the Initial Term of the agreement with Chambers. •

In early 1992, PCUA began soliciting interest from disposal companies including Chambers, for a new 15-year disposal agreement which would handle the county’s municipal waste. In addition, PCUA asked Chambers to renegotiate the disposal rates set forth in the Long-Term Agreement. Although renegotiations did begin, they proved fruitless.

[219]*219On August 15, 1992, PCUA entered into a Memorandum of Understanding (“MOU”) with Empire Sanitary Landfill, Inc. Under the MOU, PCUA agreed to deliver all Passaic County solid waste to Empire’s landfill in Eastern Pennsylvania for a period of 15 years. The Empire MOU, like the prior agreement with Chambers, was subject to the review, amendment and approval of NJDEPE.

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Cite This Page — Counsel Stack

Bluebook (online)
148 F.3d 214, 1998 U.S. App. LEXIS 10317, 1998 WL 258387, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-chambers-development-company-inc-ca3-1998.