Peninsula Sanitation, Inc v. City of Manistique

526 N.W.2d 607, 208 Mich. App. 34
Michigan Court of Appeals·Decided December 6, 1994·No. Docket 160365·Published·Cited by 8 cases

Opinion

Per Curiam.

Plaintiff appeals as of right from a judgment enjoining it from conducting its solid waste collection business within the defendant municipalities in violation of an agreement between the municipalities and defendant Manistique Rentals, Inc. (mri). We affirm.

On May 3, 1992, the landfill used by residents of Schoolcraft County was closed by the Michigan Department of Natural Resources. Before the closure, the defendant municipalities had combined certain of their functions to establish the School-craft County Department of Public Works (dpw). The dpw was responsible for developing a new county-wide solid waste disposal plan and administering the plan once the landfill was closed.

Defendant dpw held public meetings to formulate its waste disposal plan, and in April 1992, it solicited competitive bids for a contractor to collect residential and commercial solid waste pursuant to the plan. The bid specifications indicated that the successful bidder would serve all residents of the county and would pay the dpw a fee of 1% cents for each pound of garbage hauled. The dpw ultimately received two bids, one of which was untimely, for the solid waste collection contract. Defendant mri’s timely bid was accepted.

Defendants then executed two contracts, entitled "Schoolcraft County-Wide Residential Solid Waste Agreement” and "Schoolcraft County-Wide Commercial Solid Waste Agreement,” granting mri the *37 exclusive right to collect solid waste within the municipalities, effective May 4, 1992. Both agreements provided in relevant part:

19. Exclusivity: This agreement grants. Contractor the sole and exclusive right and responsibility to collect all Type 2 solid waste generated within each of the respective municipalities, which are parties to this agreement, during the term hereof, including any extensions, and each such municipality agrees to take such action as is necessary and permitted by law to prevent or enjoin any third party from collecting Type 2 refuse within its boundaries, during the term of this agreement or any extension thereof, subject, however, to the provisions of paragraph 16 of this agreement.

Paragraph 16 provided that the agreements would not interfere with or void any "valid contract, executed prior to the execution of this agreement” for solid waste removal between a hauler and residents of Schoolcraft County.

The defendant municipalities subsequently each adopted ordinances in conjunction with the agreements making it unlawful for any person or business, other than the contractor under the solid waste collection contract, to collect waste within the municipalities. The ordinances also reserved the municipalities’ right to seek injunctive relief to compel compliance with the ordinances.

Plaintiff is another company engaged in the business of solid waste collection. It also had commercial and residential customers within the defendant municipalities. Although plaintiff was aware in March 1992 that defendant dpw was soliciting competitive bids for a solid waste collection contractor, plaintiff never submitted a bid for the contract.

After the solid waste collection contract was *38 awarded to mri, plaintiff brought this action for declaratory and injunctive relief. As relevant to this appeal, plaintiff asserted that the exclusive nature of defendants’ waste collection agreements and the supporting ordinances were in violation of the state and federal Due Process Clauses, Const 1963, art 1, § 17; US Const, Am XIV. Defendants counterclaimed, seeking injunctive relief and alleging that plaintiff was collecting Type ii solid waste in the defendant municipalities contrary to the ordinances.

Following a bench trial, the court ruled that the bidding process and the exclusive waste collection agreements were reasonably related to the ends sought to be accomplished by the municipalities in the exercise of their police powers, so that no due process violation occurred. Additionally, the court enjoined plaintiff from violating the exclusivity provisions of the solid waste agreements and the supporting ordinances by collecting Type n waste from residents of the defendant municipalities.

On appeal, plaintiff contends that the trial court erred in failing to conclude that the exclusive waste collection contracts and the supporting ordinances constituted a violation of due process. We disagree.

Ordinances are presumed valid. Detroit v Qualls, 434 Mich 340, 364; 454 NW2d 374 (1990). The courts have a duty to construe them as constitutional, unless unconstitutionality is clearly apparent. Ullery v Sobie, 196 Mich App 76, 79; 492 NW2d 739 (1992). Where the legislative judgment is supported by any facts either known or that reasonably could be assumed, although such facts may be debatable, the legislative judgment must be accepted. Katt v Ins Bureau, 200 Mich App 648, 651-652; 505 NW2d 37 (1993), citing Carolene Products Co v Thomson, 276 Mich 172, 178; 267 NW *39 608 (1936), and Shavers v Attorney General, 402 Mich 554, 612; 267 NW2d 72 (1978). The party challenging an ordinance’s constitutionality has the burden of proving its invalidity. Qualls, supra, p 364.

In analyzing claims involving due process challenges to ordinances, courts first determine the type of matters to which the governmental action relates. Id., p 365. When the action relates to matters of economics or general social welfare, the test to determine whether the law comports with due process is whether it bears a reasonable relation to a legitimate governmental purpose. Id. See also Shavers, supra, pp 612-614. Here, plaintiffs claim is that the municipalities’ ordinances interfere with its business. Thus, the ordinances need only rationally relate to a legitimate governmental purpose. Qualls, supra.

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Peninsula Sanitation, Inc v. City of Manistique, 526 N.W.2d 607, 208 Mich. App. 34 (Mich. Ct. App. 1994).

526 N.W.2d 607 (Peninsula Sanitation, Inc v. City of Manistique) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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