The People of the State of California v. Chiquita Canyon, LLC

District Court, C.D. California·Decided May 30, 2025·No. 2:24-cv-10819·Unknown

Opinion

O

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA

The People of the State of California, et al., Case No.: 2:24-cv-10819-MEMF-MAR

Plaintiffs, ORDER REGARDING DEFENDANTS’ v. MOTION TO DIMISS [ECF NO. 33] AND THE PARTIES’ REQUESTS FOR JUDICIAL Chiquita Canyon, LLC, et al., NOTICE [ECF NOS. 33-2, 43-3, 45-1]

Defendants.

Before the Court is the Motion to Dismiss (ECF No. 33), Request for Judicial Notice (ECF No. 33-2), and Supplemental Request for Judicial Notice (ECF No. 45-1) filed by Defendants Chiquita Canyon, LLC, Chiquita Canyon, Inc., and Waste Connections US, Inc. Also before the Court is the Request for Judicial Notice filed by Plaintiffs the People of the State of California and the County of Los Angeles (ECF No. 43-3). For the reasons stated herein, the Court GRANTS IN PART Defendants’ Motion to Dismiss, GRANTS IN PART Defendants’ Request for Judicial Notice, GRANTS IN PART Defendants’ Supplemental Request for Judicial Notice, and GRANTS I. Factual Background1 A. The Parties Plaintiff the County of Los Angeles (“County”) is a political subdivision of the State of California and a charter county organized and existing under the constitution and laws of the State of California. Compl. ¶ 12. Plaintiff the People of the State of California (“People”; together with the County, “Plaintiffs”) brings this action by and through the County’s Office of the County Counsel. Id. ¶ 13. Defendant Chiquita Canyon, LLC (“Chiquita LLC”) is a limited liability company organized and existing under the laws of the state of Delaware with its principal place of business in Texas. Id. ¶ 14. Defendant Chiquita Canyon, Inc. (“Chiquita Inc.”) is a corporation organized and existing under the laws of the state of Delaware with its principal place of business in Texas. Id. ¶ 15. Defendant Waste Connections US, Inc. (“Waste Connections”; together with Chiquita LLC and Chiquita Inc., “Defendants”) is a corporation organized and existing under the laws of the state of Delaware with its principal place of business in Texas. Id. ¶ 16. Waste Connections is the sole owner of Chiquita Inc., which in turn is the sole member of Chiquita LLC. Id. ¶¶ 18, 19. Waste Connections exercises significant control over Chiquita LLC and Chiquita Inc. Id. ¶ 17. B. Background on the Landfill Chiquita LLC is the record owner of the 639-acre land at 29201 Henry Mayo Drive in the unincorporated community of Castaic, California. Id. ¶¶ 20, 23. Chiquita LLC obtained a conditional use permit (“CUP”) from the County to operate a landfill at the site (“Landfill”). Id. ¶ 21. Chiquita Inc. and Waste Connections also operate the Landfill. Id. Waste Connections’s employee operate the Landfill and represent the Landfill before regulatory and governmental entities. Id. 1 The following factual allegations are derived from the allegations in Plaintiffs’ Complaint, ECF No. 1 (“Complaint” or “Compl.”), unless otherwise indicated. For the purposes of this Motion, the Court treats these factual allegations as true, but at this stage of the litigation, the Court makes no finding on the truth of these The Landfill is a Class III waste disposal facility2 that accepts nonhazardous residential and commercial solid wastes. Id. ¶ 26. The Landfill also operates a landfill gas collection and control system, including gas collection wells and headers, blowers for venting gas, systems for treating landfill gas and collecting condensate and leachate, and flares for combusting landfill gas. Id. ¶ 30. The County first approved the Landfill under a CUP in 1965. Id. More recently, on July 25, 2017, the Los Angeles County Board of Supervisors approved the Landfill’s operative CUP 2004- 00042-(5). Id. ¶ 28. During review of CUP 2004-00042-(5), the Landfill was considered to be a potential source of extreme environmental impacts and community concern, requiring significant mitigation and close monitoring to protect the area. Id. ¶¶ 31, 32. As a result, CUP 2004-00042-(5) contained detailed conditions of approval to ensure that the Landfill is operated safely and in a way that avoids or mitigates any potential nuisance to the surrounding community. Id. ¶ 33. C. Noxious Reaction at the Landfill The Landfill is experiencing the “Noxious Reaction”—a continuing, uncontrolled, underground, smoldering reaction—which causes noxious odors and gases to be released into the surrounding communities. Id. ¶ 35. The Noxious Reaction began underground in May 2022 in an approximately 30-acre inactive area in the northwestern portion of the Landfill (“Reaction Area”). Id. ¶ 36. It has since grown in size. Id. According to the California Department of Resources, Recycling, and Recovery (“CalRecycle”) and the United States Environmental Protection Agency (“USEPA”), the Noxious Reaction is characterized by, among other things, significant issues with the integrity of the Landfill cover, increased landfill gas temperatures and subsurface temperatures, a change in the chemical composition of landfill gas, intrusion of excess oxygen into the landfill waste, unusual settlement within the Landfill, and damage to and poor performance of gas wells. Id. The Noxious Reaction has caused increased emissions of landfill gas and odors from the surface of the Landfill, exceeding the Landfill’s designated gas generation flow rate. Id. ¶ 38. The

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