Matter of Universal Metal & Ore, Inc. v. Westchester County Solid Waste Commn.

145 A.D.3d 46, 37 N.Y.S.3d 571
CourtAppellate Division of the Supreme Court of the State of New York
DecidedSeptember 21, 2016
Docket2013-10140
StatusPublished
Cited by9 cases

This text of 145 A.D.3d 46 (Matter of Universal Metal & Ore, Inc. v. Westchester County Solid Waste Commn.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Matter of Universal Metal & Ore, Inc. v. Westchester County Solid Waste Commn., 145 A.D.3d 46, 37 N.Y.S.3d 571 (N.Y. Ct. App. 2016).

Opinion

OPINION OF THE COURT

Cohen, J.

The petitioner, Universal Metal & Ore, Inc., is an international metal trading company founded in 1951, which maintains a facility in Mount Vernon. Essentially, Universal is in the business of purchasing scrap metal, and reselling it at a profit to other companies. The primary issue raised on appeal is whether Universal’s Mount Vernon facility, where Universal accepts deliveries of scrap metal from independent dealers and stores it pending transport, may be considered a solid waste *48 “transfer station” under the Westchester County Solid Waste and Recyclables Collection Licensing Law (hereinafter the Solid Waste Law). For the reasons that follow, we conclude that Universal’s facility is not a transfer station as defined by the Solid Waste Law, and that there was thus no rational basis for the Westchester County Solid Waste Commission’s determination to fine Universal for operating a transfer station without a license.

Factual and Procedural Background

In 1999, the Westchester County Board of Legislators enacted the Solid Waste Law to regulate the collection and disposal of solid waste and recyclables in the county (see Laws of Westchester County ch 826-a; American Ind. Paper Mills Supply Co., Inc. v County of Westchester, 65 AD3d 1173, 1174 [2009]). The County Board’s stated purpose was (1) to implement New York State’s existing solid waste management policy, as declared in article 27, title 1 of the Environmental Conservation Law, and (2) to address the encroachment of organized crime into the solid waste disposal industry (see Laws of West-chester County § 826-a.101 [1] [a], [b]). The Westchester County Solid Waste Commission was created to implement and administer the Solid Waste Law (see Laws of Westchester County § 826-a.201).

Following enactment of the Solid Waste Law, Universal obtained a class E license from the Commission, and continues to pay an annual fee for that license. The Solid Waste Law defines “Class E” licensees as “haulers who exclusively conduct a scrap peddler business” (Laws of Westchester County § 826-a.200 [6A]). A “[s]crap peddler” is defined as “any person who collects scrap materials for sale to a recyclables broker using no more than one vehicle for collection and transportation of such materials” (Laws of Westchester County § 826-a.200 [19]).

During a standard inspection of Universal’s facility on March 24, 2010, inspectors from the Commission noted that Universal accepted scrap metal from independent dealers, and they were advised that the scrap metal was stored on site for transport at a later time. Based on these observations, the inspectors informed Universal that it was required to pay a “transfer station” fee. On September 27, 2010, the Commission sent Universal a bill in the sum of $12,500. The amount represented the $20,000 annual transfer station fee {see Laws of West-chester County § 826-a.306 [2] [b]), which the Commission reduced by a recycling credit of $7,500, the largest recycling *49 credit available, since scrap metal transfer stations routinely reuse or recycle more than 75% of the metal that they accept (see Laws of Westchester County § 826-a.306 [2] [c]). Universal refused to pay the bill, and the Commission sent it a notice of violation assessing a $12,500 fine, directing Universal to cease and desist from operating a transfer station until the fine was paid, and directing it to appear before an administrative law judge for a hearing.

The Proceedings Before the Administrative Law Judge

When it appeared before the Administrative Law Judge (hereinafter the ALJ), Universal moved to dismiss the notice of violation on the ground that it did not operate a transfer station within the meaning of the Solid Waste Law. The ALJ set a briefing schedule for the motion.

In its brief to the ALJ, Universal noted that the Solid Waste Law defines a “transfer station” as a facility “where solid waste, garden and yard waste, recyclables and construction and demolition debris are received and transported off-site to a destination for final disposal” (Laws of Westchester County § 826-a.200 [27]). Universal argued that it did not operate a transfer station under this definition because the scrap metal it paid to purchase was not solid waste, and was sold to other businesses for reuse rather than “transported off-site to a destination for final disposal.” Universal also emphasized that legislative history indicated that the County Board’s purpose and intent in enacting the Solid Waste Law was to regulate the trash carting industry, which had been corruptly influenced by organized crime. However, Universal was not a trash hauler or carter that engaged in the corrupt practices intended to be addressed by the Solid Waste Law. Universal also pointed out that it did not deal with the public or the consumers of carting services, since it bought and sold metal only from and to businesses, and submitted that the Solid Waste Law was not intended to regulate its “business to business” operation.

The Commission responded in its brief by arguing that Universal was indeed operating a transfer station by accepting and storing scrap metal at its facility. In support of its position, the Commission contended that the scrap metal handled by Universal was solid waste because the statutory definition of that term included “nonputrescible materials . . . that are discarded or rejected as being spent, useless, worthless or in excess to the owners at the time of such discard” (Laws of West-chester County § 826-a.200 [22]). The Commission asserted *50 that the scrap metal handled by Universal came within this definition because it was nonputrescible material that was worthless or in excess to its owners at the time it was sold to Universal. Moreover, there was no language in the Solid Waste Law exempting scrap metal from its coverage. The Commission further submitted that the term “final disposal” as used in the definition of transfer station should be interpreted to include the movement of material from Universal’s facility to any end user. In this regard, the Commission argued that the Solid Waste Law did not limit the term “final disposal” to require transportation of material to a landfill, incinerator, or another transfer station. The Commission also contended that since the concern of the Solid Waste Law was with the environmental management of the materials handled, it was irrevelant that Universal paid for the scrap metal received at its facility. The Commission concluded by pointing out that haulers must transport scrap metal to and from Universal’s facilities, and that there was no proof that haulers of scrap metal were immune from corrupt influences.

In reply, Universal maintained that the sale of scrap metal was not equivalent to transporting it to a destination for final disposal, and that the Commission’s interpretation of the term “final disposal” ignored its plain meaning. Universal further argued that the intent of the Solid Waste Law was to regulate waste collection and disposal, and not to penalize companies such as Universal, a business that does not collect waste, does not finally dispose of waste, and sells the material.

The ALJ’s Decision

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Cite This Page — Counsel Stack

Bluebook (online)
145 A.D.3d 46, 37 N.Y.S.3d 571, Counsel Stack Legal Research, https://law.counselstack.com/opinion/matter-of-universal-metal-ore-inc-v-westchester-county-solid-waste-nyappdiv-2016.