Texas Disposal Systems Landfill, Inc. v. Waste Management Holdings, Inc.

219 S.W.3d 563, 2007 Tex. App. LEXIS 2689, 2007 WL 1028828
CourtCourt of Appeals of Texas
DecidedApril 3, 2007
Docket03-03-00631-CV
StatusPublished
Cited by177 cases

This text of 219 S.W.3d 563 (Texas Disposal Systems Landfill, Inc. v. Waste Management Holdings, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Texas Disposal Systems Landfill, Inc. v. Waste Management Holdings, Inc., 219 S.W.3d 563, 2007 Tex. App. LEXIS 2689, 2007 WL 1028828 (Tex. Ct. App. 2007).

Opinion

OPINION

W. KENNETH LAW, Chief Justice.

We grant appellant’s and overrule ap-pellees’ motions for further rehearing, 1 withdraw our opinion and judgment issued December 29, 2006, and substitute the following in its place.

Appellant Texas Disposal Systems Landfill, Inc. challenges the take-nothing judgment entered against it following a jury trial, contending that the trial court committed charge error regarding issues of defamation per se and presumed damages; that the jury’s zero-damages award was against the great weight and preponderance of the evidence; and that the trial court erred in dismissing certain claims on summary judgment, including Texas Disposal’s causes of action for defamation, tortious interference, and attempted monopoly/antitrust. Appellee Waste Management 2 argues in a cross point that, as to the defamation claims, even if Texas Disposal’s issues are sustained on appeal, the take-nothing judgment should be affirmed based on the lack of evidence of actual malice. We will affirm in part and reverse and remand in part.

BACKGROUND

Texas Disposal owns and operates a landfill in southeast Travis County (“the *570 Texas Disposal landfill”). Waste Management is one of Texas Disposal’s competitors in the waste removal and landfill services industry serving the Austin and San Antonio markets.

In 1995, Texas Disposal and Waste Management competed against one another for a contract to provide waste removal and landfill services to the City of San Antonio. By May 1995, San Antonio and Texas Disposal had begun bona fide negotiations on a contract for Texas Disposal to assume operations of the city’s Starcrest Transfer Station, from which Texas Disposal would haul San Antonio’s waste to the Texas Disposal landfill, starting in February 1997. San Antonio’s city council passed an ordinance in December 1996 authorizing the city manager to negotiate and execute a contract for Texas Disposal to privately operate the Starcrest Transfer Station in accordance with the terms of the proposed agreement between Texas Disposal and San Antonio, which was attached and incorporated into the ordinance. As of the end of January 1997, however, the parties had not yet executed a final contract.

In November 1996, the City of Austin issued a “request for proposal,” seeking bids from companies to provide waste removal and landfill services. Texas Disposal and Waste Management both submitted bids and, as of February 1997, had been selected as the two companies to proceed to Phase II of the bid process for providing the “landfill” and “materials recovery facility and transfer station or landfill” services to the City of Austin.

On January 30, 1997, before either the San Antonio or the Austin contract was finalized, Waste Management caused an “Action Alert” memo to be distributed to environmental and community leaders in Austin, including several members of the Austin City Council. Waste Management hired Don Martin, a consultant, to draft the memo. Martin gathered information from several Waste Management officials, who then approved the memo for publication. 3 Martin sent the memo to an Austin environmental advocate to be “broadcast over his fax network” to the designated group. The topic of the Action Alert was San Antonio’s proposal to contract with Texas Disposal to assume operations of the Starcrest Transfer Station. The memo warned readers about the increased traffic and environmental problems that would result, questioned the environmental integrity of the Texas Disposal landfill, and urged recipients of the memo to contact public officials in San Antonio and Austin, as well as the San Antonio Express News, to inform them of “your concerns.”

In October 1997, Texas Disposal filed suit against Waste Management, 4 alleging that Waste Management had routinely attempted to disparage Texas Disposal’s reputation in an effort to eliminate competition. Based on such conduct, Texas Disposal claimed that Waste Management was hable for defamation, tortious interference with an existing or prospective contract, and business disparagement. The petition discussed the Action Alert memo as a specific example of improper conduct by Waste Management, which, according to Texas Disposal, caused economic damages *571 by delaying the execution of the San Antonio and Austin waste disposal contracts. 5 In addition to compensatory and punitive damages, Texas Disposal sought injunctive relief against Waste Management.

After this initial suit was filed, Waste Management published a series of communications that we will collectively refer to as the “1998 Communications.” Waste Management sent a memo to the San Antonio Public Works Department on March 10, 1998, questioning the legality of Texas Disposal operating the Starcrest Transfer Station due to the restrictions in the facility’s zoning ordinance and its previously issued permit. Additionally, in May 1998, Waste Management sent an unsigned memo to the San Antonio City Council and the Texas Natural Resource Conservation Commission (TNRCC) urging that the proposed contract with Texas Disposal would result in multiple permit violations. And, on July 14, 1998, Waste Management issued a press release that claimed Texas Disposal had “inspired” a protest demonstration over Austin’s landfill and that urged reasons why Texas Disposal should not be selected in Austin’s bid process. Texas Disposal amended its petition on July 25, 2000, to include claims based on the 1998 Communications.

Waste Management denied each of the allegations and asserted, as affirmative defenses, that (1) the alleged statements were true and, thus, not defamatory; (2) the statements were privileged communications made by an interested party in petitioning the government about a matter of public concern; and (3) portions of Texas Disposal’s claims were time-barred by the statute of limitations. Waste Management also specially excepted that Texas Disposal had failed to plead sufficient facts to support each of its claims, primarily based on a lack of proof concerning causation and damages.

Waste Management moved for partial summary judgment in January 2001, seeking dismissal of Texas Disposal’s claims based on the 1998 Communications, which had been added to the petition in 2000, because they were not pled within the applicable one- and two-year statutes of limitations. 6 See Tex. Civ. Prac. & Rem. Code Ann. §§ 16.002-.00S (West 2002 & Supp.2006) (limitations periods for defamation, tortious interference, and business disparagement). Texas Disposal responded that the 1998 Communications claims were not time-barred because they related back to the original pleading, which broadly alleged that Waste Management had “routinely” engaged in a pattern of improper conduct that was “ongoing and continuous.” See id. § 16.068 (West 1997).

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Cite This Page — Counsel Stack

Bluebook (online)
219 S.W.3d 563, 2007 Tex. App. LEXIS 2689, 2007 WL 1028828, Counsel Stack Legal Research, https://law.counselstack.com/opinion/texas-disposal-systems-landfill-inc-v-waste-management-holdings-inc-texapp-2007.