Date: November 5, 2010
Source: Texas Disposal Systems Landfill, Inc.
Texas Disposal Systems (Creedmoor, TX) won a $25.45 million verdict from a Texas district court against Waste Management (Houston, TX) in a defamation lawsuit filed thirteen years ago in 1997. The jury found that Waste Management made false and defamatory statements against Texas Disposal Systems while the companies were competing for a 30-year landfill contract with the City of Austin, right after Texas Disposal had recently won a 30-year contract with the City of San Antonio. In 2003, a jury sided with Texas Disposal on the defamation claim but awarded no money. The company appealed, and in 2006, the Texas 3rd Court of Appeals ruled that the case should be retried. The latest ruling by a state District Court found that Waste Management falsely implied that Texas Disposal's Travis County landfill was not as environmentally protective, had obtained exemptions to environmental rules and had accepted wastes not permitted for it.
PRESS RELEASE
Texas Disposal Systems Wins $25 Million Verdict against Waste Management
Jury Award Caps 13-year Defamation Dispute
Texas Disposal Systems Landfill, Inc. (TDS) received a $25.45 million verdict from a Travis County State District jury today in its lawsuit against Waste Management of Texas, Inc. The jury awarded $5.45 million in actual damages and $20 million in exemplary damages, finding that Waste Management had circulated false and defamatory statements about TDS and its Austin, Texas landfill in 1997 after TDS received approval from the San Antonio City Council for a 30-year landfill disposal, transfer station and recycling contract. At the time, the companies were competing for a 30-year contract with the City of Austin.
"TDS is very pleased to have had the opportunity to fairly present its case and to see justice prevail," said Bob Gregory, chief executive officer of TDS. "We hope Waste Management's board of directors will receive the jury's apparent message concerning the acceptable limits of fair competitive practices."
Findings
The jury found that Waste Management's employees and other representatives made the statements knowing of their falsity or with reckless disregard as to whether the statements were true or not.
The jury's verdict found that Waste Management made statements that:
falsely implied that TDS's southeast Travis County facility was environmentally less protective than other area landfills
falsely stated that TDS had obtained an exception to the important and rigorous environmental rules affecting landfills, and
falsely stated that TDS accepted types of waste that are not permitted under State rules and under its permit.
The false and defamatory statements were made in a grassroots campaign to leaders in Austin's environmental community, as well as to members of the media and Austin City Council, without identifying that the source of the statements was Waste Management.
The case was filed in 1997 and originally tried in early 2003; however, in 2006, the Texas Third Court of Appeals remanded the case for retrial.
Mr. Gregory was a principal witness at trial, along with expert witnesses hydrogeologist Robert Kier and engineer Pierce Chandler, and members of Austin's environmental community, subpoenaed former Waste Management employees, and others. TDS's trial counsel was Mike McKetta and Jim Hemphill, with the firm Graves Dougherty Hearon & Moody. The two-week trial was conducted in the 345th State District Court, the Hon. Stephen Yelenosky presiding.
For additional information concerning TDS and the lawsuit, please see www.texasdisposal.com, and contact Bob Gregory at 512-619-9127 or bgregory@texasdisposal.com; or Jim Hemphill at 512-480-5600 or jhemphill@gdhm.com.
For more information, contact:
Texas Disposal Systems Landfill, Inc.
Bob Gregory, 512-619-9127
bgregory@texasdisposal.com.
or
Jim Hemphill, 512-480-5600
jhemphill@gdhm.com.
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