Waste Management of Louisiana, L.L.C. v. Jefferson Parish

48 F. Supp. 3d 894, 2014 U.S. Dist. LEXIS 123988, 2014 WL 4403447
District Court, E.D. Louisiana·Decided September 5, 2014·No. Civil Action No. 13-6764·Published·Cited by 6 cases

Opinion

ORDER AND REASONS

NANNETTE JOLIVETTE BROWN, District Judge.

This litigation involves a landfill and waste disposal contract between Plaintiff Waste Management of Louisiana, L.L.C. (‘Waste Management”) and Defendant Jefferson Parish. Before the Court is Jefferson Parish’s “Motion to Dismiss,”1 wherein Jefferson Parish requests that the Court dismiss this case for forum non conveniens, or, alternatively, for failure to state a claim upon which relief can be granted. Having considered the pending motion, the memoranda in support, the memorandum in opposition, the statements [896] made at oral argument, the complaint, and the applicable law, the Court will deny the motion.

I. Background

According to the complaint, on October 9, 1996, Jefferson Parish entered into a “Time Contract to Provide Services to Operate, Manage, and Maintain the Jefferson Parish Sanitary Landfill Site” (the “Landfill Time Contract”) with John Sexton Sand and Gravel Corp. (“Sexton”).2 In 1998, with the approval of Jefferson Parish, Sexton sold, transferred, and assigned the Landfill Time Contract to Waste Management.3

Pursuant to the Landfill Time Contract, Waste Management managed the Jefferson Parish Sanitary Landfill (the “Landfill”) and the disposal of all solid waste and sewage sludge generated in Jefferson Parish.4 According the complaint, the Landfill was divided into Phases I, II, IIIA, and IIIB.5 Under the terms of the contract, Waste Management received an initial lump sum from Jefferson Parish as well as a “tipping fee” for all wastes disposed of in Phases IIIA and IIIB. In turn, Waste Management was obligated to pay a royalty on certain wastes to Jefferson Parish.6 Waste Management alleges that the term of the Landfill Time Contract was to end when Phases IIIA and IIIB were filled and closed.7

According to Waste Management, on or about May- 17, 2012, while the Landfill Time Contract was still in effect, Jefferson Parish and IESI Landfill Corporation (“IESI”) entered into a “Contract to Provide Services to Operate, Manage, and Maintain the Jefferson Parish Sanitary Landfill Site” (the “IESI Contract”).8 The IESI Contract called for IESI to develop a new Phase IVA of the Landfill, located between and partially on top of Phases IIIA and IIIB.9 Waste Management claims that IESI’s development of Phase IVA interfered with its ongoing operations in Phase IIIB.10 Further, Waste Management asserts that Jefferson Parish forced it to relocate a haul road to facilitate IESI’s development of Phase IVA.11

Waste Management claims that in March 2013, at Jefferson Parish’s request, Waste Management agreed to end its Landfill operations by May 1, 2013, even though Phase IIIB had yet to be filled and closed.12 According to the complaint, Waste Management transitioned Landfill operations to IESI on April 30, 2013.13 Following the transition, however, Waste Management alleges that it continued to work on the installation of a final. cap system, “consisting of soil and synthetic layers/liners,” that would close Phase IIIB.14 According to Waste Management, its work on the final cap system was complicated by Jefferson Parish’s failure to collect and control landfill gases.15

[897] On August 21, 2013, Waste Management delivered a “Notice of Termination” to Jefferson Parish, purporting to terminate the Landfill Time Contract, effective August 31, 2013.16 Waste Management claims that it terminated the contract due to Jefferson Parish’s failure to pay certain invoices.17 On August 31, 2013, Waste Management ceased work on the Landfill; according to the complaint, the final cap system “was largely complete” at this time.18 According to Waste Management, it assigned the performance obligations of the final capping work to Jefferson Parish.19

A. Procedural Background

On December 20, 2013, Waste Management filed suit against Jefferson Parish in the United States District Court for the Eastern District of Louisiana.20 In its complaint, Waste Management asserts that Jefferson Parish owes $461,108.60 in unpaid invoices.21 Additionally, Waste Management claims that Jefferson Parish interfered with Waste Management’s performance under the Landfill Time Contract and caused Waste Management to perform additional services.22 Finally, Waste Management alleges that it performed “emergency hurricane debris collection and management services for Jefferson Parish,” for which it has never been paid.23 Waste Management brings claims for breach of contract, failure to pay, unjust enrichment, quantum meruit, detrimental reliance, and attorneys’ fees24

On January 22, 2014, Jefferson Parish filed the pending “Motion to Dismiss.”25 On February 11, 2014, Waste Management filed a memorandum in opposition.26 With leave of the Court, Jefferson Parish filed a reply on February 14, 2014.27 The Court heard oral argument on the motion to dismiss on February 19, 2014.28

II. Parties’ Arguments

A. Jefferson Parish’s Arguments in Support

Jefferson Parish “moves the Court to dismiss this case for forum non conve-niens, or, in the alternative, moves the Court to dismiss this case pursuant to Fed. R. Civ. Proc. 12(b)(6).”29 According to Jefferson Parish, “[t]his case belongs in the 24th Judicial District for the Parish of Jefferson, State of Louisiana.”30 Jefferson Parish contends that the Landfill Time Contract “contains a valid foram-selection clause,”31 which states:

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Waste Management of Louisiana, L.L.C. v. Jefferson Parish, 48 F. Supp. 3d 894, 2014 U.S. Dist. LEXIS 123988, 2014 WL 4403447 (E.D. La. 2014).

48 F. Supp. 3d 894 (Waste Management of Louisiana, L.L.C. v. Jefferson Parish) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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