Sugarloaf Citizens Assoc., Inc. v. Gudis

573 A.2d 1325, 319 Md. 558, 1990 Md. LEXIS 85
CourtCourt of Appeals of Maryland
DecidedMay 30, 1990
Docket59, September Term, 1989
StatusPublished
Cited by36 cases

This text of 573 A.2d 1325 (Sugarloaf Citizens Assoc., Inc. v. Gudis) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sugarloaf Citizens Assoc., Inc. v. Gudis, 573 A.2d 1325, 319 Md. 558, 1990 Md. LEXIS 85 (Md. 1990).

Opinion

ADKINS, Judge.

On 7 July 1987 four members of the Montgomery County Council voted in favor of siting a mass-burn resource recovery facility (RRF — a type of incinerator) in the Dickerson area of the county. One of the four members so voting was *562 respondent Michael Gudis (Gudis). 1 The three remaining councilmembers voted to locate the facility in the Shady Grove area. Later at the same meeting, the council (by vote of 4-1, with Gudis again in the majority) adopted Resolution No. 11-382. Resolution No. 11-382 amended the County’s Ten Year Solid Waste Management Plan to include in it the Dickerson mass-burn facility.

The Dickerson site involved land owned by Potomac Electric Power Co. (PEPCO) — land that presumably would have to be leased or purchased by the County to permit operation of the mass-burn facility. The County would also need to coordinate other matters with PEPCO in order to operate the facility. At the time of the July 1987 vote, Councilmember Gudis owned an amount of PEPCO stock sufficient to bring him within the purview of the ethics provisions of the Montgomery County Code, Chapter 19A. 2

Prior to 7 July 1987 Gudis had obtained from the Montgomery County Ethics Commission a waiver of the conflict-of-interest provision (note 2, supra) that otherwise would have prevented him from voting for the Dickerson site. 3

*563 On 5 October 1987 petitioners, The Sugarloaf Citizens Association, Inc., Lynn Lipp, and Beverly Thoms, all allegedly taxpayers in Montgomery County (and the latter two residents of the Dickerson area) (collectively Sugarloaf), sued Gudis and the county council in the Circuit Court for Montgomery County. They asked that court to “void the action of the Council in approving” the Dickerson site and in adopting Resolution No. 11-382.

The circuit court declined to do so. It held that “the evidence before the Court supports the proposition that Mr. Gudis’[s] vote was properly cast, since he did, in fact, have a waiver from the Ethics Commission.” The Court of Special Appeals affirmed, although it did not reach the question of the validity of the waiver. It held “that no private right of action, implied or otherwise, exists under section 19A-22(b) of the Montgomery County Code.” Sugarloaf Citizens Ass’n v. Gudis, 78 Md.App. 550, 560, 554 A.2d 434, 439 (1989) [footnote omitted]. Additionally, the intermediate appellate court ruled that even if Sugarloaf had common law taxpayer standing to challenge Resolution No. 11-382, its “disregard for the primary jurisdiction doctrine presents an alternative basis for affirming the trial court’s order dismissing [the] action.” Id. at 561, 554 A.2d at 439.

We affirm the judgment of the Court of Special Appeals, but for reasons totally different from those given by that court. We conclude that § 19A-22(b) of the Montgomery County Code is unconstitutional. Since Sugarloaf relies on that subsection as authority for the court’s power to strike down the legislative action here in question, Sugarloaf cannot prevail.

I.

Montgomery County, like other jurisdictions throughout the State, is faced with substantial solid waste disposal problems. As of April 1985, three principal alternatives were under study:

*564 1. Processing the County’s solid waste into fuel which would be burnt in PEPCO’s generating plant at Dickerson [RDF];
2. Burning the County’s solid waste in a resource recovery facility [near Shady Grove] and selling the resulting energy to PEPCO [RRF]; and
3. Landfilling baled refuse at Travillah Quarry, or expanding the existing landfill.

Because two of these options involved PEPCO, and because Gudis owned PEPCO stock, he had twice (prior to April 1985) asked the ethics commission to waive the conflict-of-interest provisions of the County Code. See n. 3, supra. The commission denied both requests. Similar action had been taken with respect to other county officials including Lewis Roberts, the Chief Administrative Officer.

In August 1985 Roberts submitted another waiver request to the commission. This one was accompanied by a memorandum from the director of the County’s Department of Environmental Protection. The memorandum purported to demonstrate that

no conceivable [solid waste disposal] decision could significantly affect PEPCO finances. In fact, law and policy will compel an exactly zero effect, not merely a small effect.

Memorandum from John L. Menke to Lewis T. Roberts (31 July 1985).

On the strength of this, the commission reconsidered its prior denials. Eventually, by vote taken on 2 December 1985 and announced on 10 December (by way of a press release), it granted waivers to Gudis and Roberts, as well as to another PEPCO stockholder. The waiver stated that the council was considering the following solid waste disposal alternatives:

1. expansion of the existing landfill;
2. siting a new landfill at the Travillah Quarry;
3. construction of a resource recovery facility with sale of electricity to PEPCO [RRF]; and
*565 4. installation of a refuse derived fuel (RDF) system at the existing PEPCO plant in Dickerson.

The commission observed that selection of either option 3 or 4 would result in “some form of contractual relationship with PEPCO.” It explained that

[t]o provide the greatest opportunity to public officials owning PEPCO stock to participate in future decisions regarding these proposals, the Montgomery County Ethics Commission has determined that those officials who wish to exercise their authority to participate in policy decisions regarding such matters may do so if they publicly disclose their ownership of this stock and the number of shares they own... . [4]

Some three months later, at PEPGO’s request, the council began to explore a new and different concept — constructing a RRF at Dickerson instead of at Shady Grove. On 7 October 1986 the county executive recommended the Dickerson RRF as the best alternative. This raised the possibility of sale or lease of PEPCO property, a possibility that the County apparently had not considered previously, and that had not been presented to the ethics commission when the waivers were granted.

So matters stood on 7 July 1987 when, as we have recounted, Gudis cast the deciding vote in favor of the Dickerson site and also voted to adopt Resolution No. 11-382 — the councilmanic action that authorized use of the Dickerson site for the RRF. It is that action, of course, that Sugarloaf seeks to nullify.

II.

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Bluebook (online)
573 A.2d 1325, 319 Md. 558, 1990 Md. LEXIS 85, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sugarloaf-citizens-assoc-inc-v-gudis-md-1990.