WASTE MANAGEMENT OF CENTRAL LOUIS. v. Beall

880 So. 2d 923, 2004 WL 1737007
CourtLouisiana Court of Appeal
DecidedAugust 4, 2004
Docket2003-1710
StatusPublished
Cited by8 cases

This text of 880 So. 2d 923 (WASTE MANAGEMENT OF CENTRAL LOUIS. v. Beall) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
WASTE MANAGEMENT OF CENTRAL LOUIS. v. Beall, 880 So. 2d 923, 2004 WL 1737007 (La. Ct. App. 2004).

Opinion

880 So.2d 923 (2004)

WASTE MANAGEMENT OF CENTRAL LOUISIANA, et al.
v.
Robert P. BEALL, et al.

No. 2003-1710.

Court of Appeal of Louisiana, Third Circuit.

August 4, 2004.
Rehearing Denied September 22, 2004.

*924 Henry B. Bruser, III, Michael J. O'Shee, G. Trippe Hawthorne, Gold, Weems, Bruser, Sues & Rundell, Alexandria, LA, for Intervenors/Appellees—Lloyd O. Book, Jr., Michael Green, David Miller, Scott Perry, Jr., Sanitation Service, Inc., and J. Rax Garbage Disposal Service, Inc., Individually and as Class Representatives.

*925 Albin Alexandre Provosty, John Dexter Ryland, John Patrick Doggett, Provosty, Sadler, deLaunay, Fiorenza & Sobel, Alexandria, LA, for Secondary Defendant/Appellant —City of Alexandria.

Allen J. Smith, Jr., Plauche, Smith & Nieset, Lake Charles, LA, Timothy Joseph Poche Taylor, Porter, Brooks, & Phillips, L.L.P., Baton Rouge, LA, for Plaintiffs/Appellants —Waste Management of Louisiana, L.L.C. and Waste Management Holdings, Inc.

Court composed of ULYSSES GENE THIBODEAUX, C.J., GLENN B. GREMILLION, and JOHN B. SCOFIELD[*], Judges.

THIBODEAUX, Chief Judge.

Waste Management of Louisiana, Inc.,[1] the defendant in this class action, appeals a judgment adverse to it on the merits. The judgment declared a 1986 public contract between the City of Alexandria and Waste Management for the operation of the Alexandria Landfill valid only for 60 days after its signing, and null and void thereafter. The judgment awarded the class members $1,775,904.30, plus interest and attorneys' fees. The award was based on what the class claimants, as customers of Waste Management, paid Waste Management while it operated the landfill under the operating contract between 1986 and 1990, when the landfill closed. The amount of the award was a calculation of the profit from these customer payments that the trial court found Waste Management illegally obtained from a null public contract.

Procedurally, the class certification was ordered in 1998 and it arose out of incidental actions. The litigation out of which the incidental actions and the class action emerged, began in 1992 when Waste Management sued a former employee, Robert P. Beall, and a waste disposal contractor, The Omega One Company, for damages arising from the misuse of Waste Management's commercial customer information. Beall and Omega reconvened and filed a third party demand against the City of Alexandria. The reconventional demand and third party demand sought return of all money paid by Beall and Omega as customers of Waste Management during the approximate four-and-one-half years that Waste Management operated the Alexandria Landfill. Several more customers, including haulers of solid waste for hire, intervened and asserted the same demand. The reconventional demands and interventions grew into a class action. The class was certified and defined as all customers of the Alexandria Landfill charged by Waste Management to deposit solid waste in that landfill from February 11, 1986 until its closure in September 1990. The original demand by Waste Management against Beall and Omega is no longer an issue.

On appeal, Waste Management seeks reversal of the judgment in its entirety. The class claimants answered the appeal, and ask that we find the landfill operating contract was never valid, not even for 60 days. They also ask that we increase the award to the total of Waste Management's receipts, not limited to its profit after expenses. For the following reasons, we find *926 in favor of Waste Management and reverse the judgment in its entirety.

I.

ISSUES

Our decision rests on our resolution of two issues. The first is the efficacy of the 1986 Sanitary Landfill Operating and Maintenance Agreement (hereinafter "operating contract"), a public contract between the City of Alexandria and Waste Management effected under the emergency provisions of the city charter. This includes the duration of the contract, i.e., whether the term was limited by emergency ordinance to 60 days, or limited in duration only by the terms of the contract itself. The second issue is whether, under state law, the operating contract was subject to the requirement of the public bid laws.

II.

BACKGROUND

For many years, solid waste in Alexandria and its environs was dumped in a landfill leased by the City known as the Alexandria Landfill. It was situated on Esler Road outside the City. This landfill was operated by the City and received garbage generated or collected by the City, as well as material delivered by private citizens and local waste haulers from Rapides Parish and elsewhere.

In the early 1980's the Louisiana Department of Environmental Quality (DEQ) began the process of enforcing mandated new standards for sanitary landfill operations across the state. The DEQ ordered the City to either upgrade its facility, which was being operated as an open dump, or close it in accordance with the new regulations. The deadline was January 20, 1986. City officials tried to get an extension of the closure order, as they had done in the past, but this time they were unsuccessful. There was no nearby alternate disposal site available. The City had neither the equipment nor the resources to haul the solid waste the considerable distance to another acceptable site. Nor did the City have the money to properly close the landfill, as it would ultimately have had to do. The DEQ made it clear that the only way the landfill would be allowed to continue in use past the deadline was if the City contracted with an established waste management company with the resources and expertise necessary to operate and close the landfill in accordance with regulatory standards. If the Alexandria Landfill had been shut down, there would have been no place for people to put their garbage.

Faced with this ultimatum, and unable to find anyone interested except Waste Management, the City Council, by Emergency Ordinance No. 13-1986 at its February 11, 1986 meeting, approved the operating contract with Waste Management. Immediately after the emergency ordinance was passed authorizing the operating contract, the DEQ, which had a representative present at the council meeting, granted a closure extension. Under the operating contract's provisions, the City paid Waste Management a flat monthly fee of $18,750.00. In return, Waste Management provided all equipment and personnel necessary to operate and maintain the landfill; received for disposal from the City all waste collected by the City and properly put it in the landfill; and, effected closure of the landfill in accordance with regulatory standards.

The duration of the operating contract was until closure of the Alexandria Landfill, and that event was contemplated to coincide with completion and approval of a new sanitary landfill then being created by Waste Management. Waste Management *927 operated the landfill for about four-and-one-half years, closing it on September 30, 1990.

III.

STANDARD OF REVIEW

It is well settled that in civil cases, the appropriate standard for appellate review of factual determinations is the manifest error—clearly wrong standard, which precludes the setting aside of a district court's finding of fact unless that finding is clearly wrong in light of the record reviewed in its entirety. Hall v. Folger Coffee Co., 03-1734 (La.4/14/04), 874 So.2d 90. An equally well-established principle of Louisiana law is that all legal issues are subject to the de novo standard of review. Id.

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