Waste Management Holdings, Inc. v. Gilmore

64 F. Supp. 2d 537, 30 Envtl. L. Rep. (Envtl. Law Inst.) 20090, 1999 U.S. Dist. LEXIS 13508, 1999 WL 688655
District Court, E.D. Virginia·Decided August 30, 1999·No. Civil Action 3:99CV425·Published·Cited by 5 cases

Opinion

MEMORANDUM OPINION

SPENCER, District Judge.

This matter is before the Court on Defendants’ (“the Commonwealth” or “Virginia”) Motion to Dismiss pursuant to Federal Rule of Civil Procedure 12(b)(6). For the reasons stated herein, the Court DENIES the motion, except as it relates to Plaintiffs’ Contract Clause claims (Waste Management Complaint, Counts II, IV, and VIII; Brunswick Complaint, Count VI).

*540 I. BACKGROUND

This is a suit for declaratory judgment and to enjoin the enforcement of several recently enacted Virginia statutes aimed at curtailing the flow of out-of-state municipal solid waste into the Commonwealth. 1 Plaintiffs contend that the new laws violate the Commerce, Contracts, Supremacy, and Equal Protection clauses of the United States Constitution. In an apparent effort to recover attorneys’ fees pursuant to 42 U.S.C. § 1988, they have sought relief under 42 U.S.C. § 1983.

The Commonwealth has moved to dismiss Plaintiffs Complaints 2 in their entirety on two grounds: first, that Plaintiffs lack standing to challenge the disputed laws, because Virginia’s counties had no authority to enter into the “host agreements” that “form the basis of this litigation” (Defs’ Mem. in Supp. at 4), and second, that the suit is barred by the Eleventh Amendment and the doctrine of sovereign immunity. In addition, the Commonwealth has separately targeted each of Plaintiffs’ individual constitutional claims. Finally, the Commonwealth argues that Charles City County must be dismissed as a plaintiff, because it lacks standing to sue its creator.

II. Rule 12(b)(6) Standard

Rule 12(b)(6) of the Federal Rules of Civfl Procedure permits a party to move for dismissal of a claim on the ground that it fails to state a claim upon which relief can be granted. When considering such a motion, a court must presume that all factual allegations in the complaint are true, and all reasonable inferences must be construed in the light most favorable to the non-moving party. Martin Marietta v. International Telecommunications Satellite Org., 991 F.2d 94,97 (4th Cir.1992). No claim should be dismissed unless it appears beyond a doubt that the plaintiff could not recover under any set of facts which could be proven. Conley v. Gibson, 355 U.S. 41, 45-46, 78 S.Ct. 99, 102, 2 L.Ed.2d 80 (1957); Labram v. Havel, 43 F.3d 918, 920 (4th Cir.1995).

III. DISCUSSION

A. The Commonwealth’s Contention that Plaintiffs Lack Standing Because Virginia Counties Lack Authority to Enter Into the “Host Agreements”.

As detailed in both Complaints, each of the seven large regional landfills likely to be affected by the disputed statutes is privately operated under a voluntary agreement between the “host” county and the waste disposal company that operates the landfill. (Waste Management Complaint ¶ 16, Brunswick Complaint ¶ 16.) Pursuant to these “host agreements,” the waste disposal companies constructed the regional landfills, pay the host counties a fee based on the volume of waste disposed, and perform certain services for the host communities, such as free waste disposal and closure of substandard landfills. (Waste Management Complaint ¶ 18, Brunswick Complaint ¶ 16.) Each of the landfills was built with the expectation that, in order to meet its revenue needs and provide a reasonable return on investment, it would accept substantial quantities of out-of-state municipal solid waste. (Id.)

The Commonwealth argues that Virginia’s counties have no authority “to operate or contract for the operation of a municipal landfill for-profit that accepts out-of-state waste.” (Defs’ Mem. in Supp. at 4.) Accordingly, “these host agreements and the Counties’ actions with regard to acceptance of interstate waste at these municipal landfills are ultra vires and unlawful.” (Id. at 5.) Since the host agree *541 ments “form the basis of this litigation” (id. at 4), the Commonwealth reasons, “Plaintiffs do not have standing to raise the challenges asserted in their Complaints, and both Complaints must be dismissed.” (Id.) For the purposes of deciding this motion, the Court will accept the Commonwealth’s argument that the counties’ authority is relevant to Plaintiffs’ standing. It disagrees, however, that the host agreements are illegal under Virginia law.

As the Commonwealth stresses, Virginia’s courts follow “Dillon’s Rule,” which holds that a municipal corporation possesses only those powers that are (1) expressly granted by the Commonwealth, (2) “necessarily or fairly implied in or incidental to the powers expressly granted,” or (3) “essential to the declared objects and purposes of the corporation, not simply convenient but indispensable.” City of Richmond v. Board of Supervisors of Henrico County, 199 Va. 679, 101 S.E.2d 641, 645 (1958). “Any fair, reasonable doubt concerning the existence of the power is resolved by the courts against the corporation and the power is denied.” Id. Turning to this case. § 15.2-932 of the Virginia Code grants “[a]ny locality” authority “to contract with any person, whether profit or nonprofit, for garbage or refuse pickup and disposal services in its locality and to enter into contracts relating to waste disposal facilities which recover energy or materials from garbage, trash, and refuse.” Va.Code Ann. § 15.2-932 (Michie 1997) (emphasis added). A possible reading of this statute — and the one that the Commonwealth urges upon the Court — is that it gives Virginia counties the power to contract only for the disposal of their own waste. Thus, were this an entirely open question, one might reasonably argue that the host agreements negotiated by the counties exceed the scope of authority bestowed by the General Assembly.

Unfortunately for the Commonwealth, however, this is not an open question, for the Supreme Court of Virginia has strongly indicated, albeit in dicta, that counties do possess the authority that the Commonwealth says they lack. In Concerned Residents of Gloucester County v. Board of Supervisors of Gloucester County, a local citizens group challenged the validity of the host agreement between Waste Management and Gloucester County. 248 Va. 488, 449 S.E.2d 787, 789 (1994). Although the plaintiffs did not raise the same argument that the Commonwealth makes, the court left little doubt about its position on the question. “At the outset,” it noted, “the General Assembly has declared the public policy of Virginia respecting the collection and disposal of solid waste and has granted local governments extensive power in this matter.” Id. (emphasis added).

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Waste Management Holdings, Inc. v. Gilmore, 64 F. Supp. 2d 537, 30 Envtl. L. Rep. (Envtl. Law Inst.) 20090, 1999 U.S. Dist. LEXIS 13508, 1999 WL 688655 (E.D. Va. 1999).

64 F. Supp. 2d 537 (Waste Management Holdings, Inc. v. Gilmore) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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