Pleasant Hill Bayshore Disposal, Inc. v. Chip-It Recycling, Inc.

110 Cal. Rptr. 2d 708, 91 Cal. App. 4th 678
CourtCalifornia Court of Appeal
DecidedSeptember 13, 2001
DocketA092831
StatusPublished
Cited by7 cases

This text of 110 Cal. Rptr. 2d 708 (Pleasant Hill Bayshore Disposal, Inc. v. Chip-It Recycling, Inc.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pleasant Hill Bayshore Disposal, Inc. v. Chip-It Recycling, Inc., 110 Cal. Rptr. 2d 708, 91 Cal. App. 4th 678 (Cal. Ct. App. 2001).

Opinion

Opinion

KAY, J.

The central issue on this timely and authorized appeal from an order granting a preliminary injunction (Code Civ. Proc., § 904.1, subd. (a)(6)) is whether the enactment by Congress of an obscure law concerning the Federal Aviation Administration in 1994 preempted long-established local authority over garbage, specifically the power to grant an exclusive franchise for the collection and disposal of refuse. We conclude that Congress had no intent to occupy this field to the complete exclusion of local regulation. Finding no defect with the order, we shall affirm it.

*682 Background

The injunction restrains defendants Chip-It Recycling, Inc., and its president Bruce McChesney (hereafter collectively referred to as Chip-It), from “soliciting and/or entering into contracts with individuals or entities for the collection and/or disposal of any Solid Waste” within the boundaries of the City of Antioch and the Central Contra Costa Solid Waste Authority (CCCSWA). Chip-It was also restrained from “collecting and/or disposing of any Solid Waste anywhere within the boundaries of the CCCSWA,” but Chip-It was not prohibited “from collecting recyclable materials within the CCCSWA which have been separated from garbage and refuse by the waste generator at the point of collection. Within the CCCSWA, recyclable construction and demolition debris shall be considered to have been separated from garbage and refuse by the waste generator at the point of collection where the average percent of non-recyclable residual placed for collection is no more than 20%, and 80% or more of material placed for collection is actually recycled and beneficially reused.” The injunction defines “solid waste” by adopting the definition of the California Integrated Waste Management Act of 1989—“all putrescible and nonputrescible solid, semisolid, and liquid wastes, including garbage, trash, refuse, paper, rubbish, ashes, industrial wastes, demolition and construction wastes, abandoned vehicles and parts thereof, discarded home and industrial appliances, dewatered, treated, or chemically fixed sewage sludge which is not hazardous waste, manure, vegetable or animal solid and semisolid wastes, and other discarded solid and semisolid wastes.” (Pub. Resources Code, § 40191, subd. (a).)

The salient circumstances are easily set forth. Plaintiff Pleasant Hill Bayshore Disposal, Inc. (hereinafter Pleasant Hill), has an exclusive franchise for the collection, removal, transfer, transportation, and disposal of “solid waste” within CCCSWA. Pleasant Hill also has an exclusive franchise for the collection, removal and disposal of “all garbage, rubbish and recyclable/salvageable materials” within the City of Antioch. Chip-It describes its business as the collection and removal of “recyclable construction and demolition debris materials such as wood, metal, sheet rock, stucco, concrete, and cardboard from construction sites and other commercial sites where this material is generated.” Chip-It “hauls both source-separated (segregated by the customer) and mixed loads of recyclable materials from its customer[s],” who pay a fee for Chip-It to collect and transport the materials in “debris boxes.” Chip-It charges a “hauling fee” for these services. The size of the fee depends “on the type and quantity of the recyclable material.” Chip-It transports the materials to recycle processors. “Through these processors, the recyclable wood is made into fuel, pallets, *683 and particle board; the concrete and stucco become Class II road base or are used in levee repair; the metal is baled and sold for commercial reuse; sheet rock is remanufactured into new sheet rock; and the cardboard is processed for commercial reuse. After sorting and processing, only a small amount (well below twenty percent by weight) of non-recyclable material remains for disposal in landfill.”

Claiming that Chip-It’s conduct violated its exclusive franchises, Pleasant Hill filed a complaint for damages and injunctive relief. One week later Pleasant Hill applied for a temporary restraining order and a preliminary injunction. The parties submitted more than a dozen declarations, deposition excerpts, and a wealth of supporting documentation. Chip-It argued that its “recycling activity squarely falls within the preemptive scope” of a federal law which displaced “State and Local Regulation of Transportation Of Recyclable Material” and thus trumped Pleasant Hill’s exclusive franchises. Chip-It further argued that Pleasant Hill had not established that what Chip-It was doing violated either of the franchises. Finally, Chip-It argued that injunctive relief should be denied because (1) Pleasant Hill could be compensated with monetary damages; and (2) the balance of equities between Pleasant Hill—“which has an army of employees and equipment and is itself a wholly owned subsidiary of an even larger corporation”—and Chip-It—“a small business with nine employees and four trucks”—favored Chip-It and its customers.

With the assistance of an attorney knowledgeable about the subject who acted as a special master, the trial court entered the injunction quoted above.

Review

I

The major contention Chip-It presents against the injunction is that it contravenes a federal law that Chip-It claims preempts state authority, the basis for the exclusive franchises held by Pleasant Hill. The statute in question is the Federal Aviation Administration Authorization Act of 1994 (hereafter cited as the FAA Authorization Act) (Pub.L. No. 103-305 (Aug. 23, 1994) 108 Stat. 1569). Chip-It sees preemption in section 601, the sole measure in title VI (Intrastate Transportation of Property) of this enactment. Although the section is too lengthy to quote in full, its structure suggests its limited scope.

Subdivision (a) of section 601 of the FAA Authorization Act is Congress’s finding that “(1) the regulation of intrastate transportation of property by the States has— [H] (A) imposed an unreasonable burden on interstate commerce; [f] (B) impeded the free flow of trade, traffic, and transportation *684 of interstate commerce; and [^] (C) placed an unreasonable cost on the American consumers; and fl[] (2) certain aspects of the State regulatory process should be preempted.” Subdivision (b) concerns preemption of state regulatory authority of “Transportation by Air Carrier or Carrier Affiliated with a Direct Air Carrier.” The subject of subdivision (c)(1)—the specific focus of Chip-It’s arguments—is “Preemption of State Economic Regulation of Motor Carriers.” It provides that (with certain exceptions not relevant here) “a State, political subdivision of a State, or political authority of 2 or more States may not enact or enforce a law, regulation, or other provision having the force and effect of law related to a price, route, or service of any motor carrier (other than a carrier affiliated with a direct air carrier . . .) or any motor private carrier with respect to the transportation of property.” (FAA Authorization Act, § 601 (c)(1), codified at 49 U.S.C. § 14501(c)(1) (hereafter section 14501(c)(1)).)

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Bluebook (online)
110 Cal. Rptr. 2d 708, 91 Cal. App. 4th 678, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pleasant-hill-bayshore-disposal-inc-v-chip-it-recycling-inc-calctapp-2001.