Date: May 8, 2013
Source: National Solid Wastes Management Association
The City of Dallas has given up its long-fought plans to require all waste in the city to be delivered to its landfill or transfer stations by settling a lawsuit brought by area waste haulers who argued that the city ordinance violated their existing 20-year contracts with the city, among other issues. The settlement, which was approved earlier this month by Federal District Court Judge Reed O'Connor, means the haulers can dispose of the waste they collect in Dallas at a location of their choosing, including their own facilities located outside Dallas. The city passed its flow control ordinance in September 2011. The law was challenged by the National Solid Wastes Management Association (NSWMA) and several haulers who argued that the law violated their existing 20-year franchise contracts with the city, reached in 2007. As such, it violated the Contract Clause of the U.S. Constitution as well as Texas state law and the Dallas city charter, they argued. The court determined that the city enacted the law for economic gain "at the expense of the franchisees' rights. This is an unreasonable exercise of its police powers," the court said in its ruling. As part of the settlement, it was agreed that no flow control law would be applicable to the parties to the lawsuit until 2029.
See also: "Dallas Seeks New Trial in Waste Flow Control Case," (www.wasteinfo.com/news/wbj20121129B.htm), November 14, 2012.
See also: "Court Issues Permanent Injunction against Dallas Flow Control Law," (www.wasteinfo.com/news/wbj20121016A.htm), October 16, 2012.
See also: "Judge Issues Injunction against Dallas Flow Control Law," (www.wasteinfo.com/news/wbj20120201A.htm), January 31, 2012.
PRESS RELEASE
May 8, 2013
NSWMA, Dallas Settle Flow Control Lawsuit
Settlement allows court ruling to stand; collection companies may dispose of waste where it makes the most economic sense, not at government-mandated locations
Several waste haulers and the National Solid Wastes Management Association (NSWMA) have announced that they will settle a longstanding waste flow control lawsuit against the City of Dallas that dates to 2011.
The settlement, which was approved this week by Federal District Court Judge Reed O'Connor, means these haulers can dispose of the waste they collect in Dallas at a location of their choosing, including their own facilities located outside Dallas.
The city passed an ordinance in September 2011 mandating that all waste collected inside its borders go to the city's McCommas Bluff Landfill. NSWMA, joined by several other parties, filed a lawsuit seeking to overturn the ordinance, saying it violated federal and state constitutional principles and city law.
The settlement makes permanent an October 2012 injunction issued by Judge O'Connor barring enforcement of the ordinance. That ruling stated that the city's actions violated the Contract Clause of the U.S. Constitution as well as Texas state law and the Dallas city charter. The court determined that the city enacted the law for economic gain "at the expense of the franchisees' rights and that was an unreasonable exercise of its police powers."
"We are so happy we're able to put this episode behind us," said Tom Brown, Senior Vice President and Chief Operating Officer of Progressive Waste Solutions in Fort Worth and chair of NSWMA's Texas Chapter. "This settlement preserves competition for waste disposal and recycling services in Dallas. City businesses and residents will be the beneficiaries of this agreement as it assures a competitive marketplace."
As part of the settlement, it was agreed that no flow control law would be applicable to the parties to the lawsuit until 2029.
"We are glad it's over, but disappointed that Dallas taxpayers had to foot the bill for defending this terrible ordinance," said Sharon H. Kneiss, President and Chief Executive Officer of the Environmental Industry Associations (EIA), the parent association of NSWMA. "Cities, counties and states should be on notice that we will not stand idly by and let local governments establish waste disposal monopolies. It's not just bad for our industry, it's bad for the consumer and the taxpayer, as well. Let the market determine the most economical and environmentally sound waste management solutions. The answer is not a government monopoly."
The parties to the settlement include NSWMA; Bluebonnet Waste Control, Inc.; IESI Corp.; Republic Services, Inc.; Waste Management, Inc.; Businesses Against Flow Control; and the City of Dallas.
The Environmental Industry Associations (EIA) is the trade association that represents the private sector solid waste and recycling services industry through its two sub-associations, the National Solid Wastes Management Association (NSWMA) and the Waste Equipment Technology Association (WASTEC). NSWMA and WASTEC members conduct business in all 50 states and include companies that collect and manage garbage, recycling and medical waste; equipment manufacturers and distributors; and a variety of other service providers. For more information about how innovation in the environmental services industry is helping to solve today's environmental challenges, visit beginwiththebin.org.
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NSWMA, Dallas Settle on Flow Control
May 8, 2013 Allan Gerlat | Waste Age
Waste haulers in the Dallas area can dispose of waste where they choose, according to a settlement the National Solid Wastes Management Association (NSWMA) and several haulers reached with the city on its long-standing flow control case.
U.S. District Court Judge Reed O'Connor has approved a settlement for haulers that collect waste in Dallas to dispose at any location, including facilities outside Dallas, according to an NSWMA news release.
The settlement resolves a battle that began in September 2011 when the city passed an ordinance that all waste collected inside its borders go to the city's McCommas Bluff Landfill. The settlement makes permanent a court injunction against the ordinance issued in October 2012.
"We are so happy we're able to put this episode behind us," said Tom Brown, senior vice president and CEO of Progressive Waste Solutions Ltd. in Fort Worth, and chairman of NSWMA's Texas chapter. "This settlement preserves competition for waste disposal and recycling services in Dallas. City businesses and residents will be the beneficiaries of this agreement as it assures a competitive marketplace."
As part of the settlement, it has been agreed that no flow control law would be applicable to the parties to the lawsuit until 2029.
"We are glad it's over, but disappointed that Dallas taxpayers had to foot the bill for defending this terrible ordinance," said Sharon Kneiss, president and CEO of the Environmental Industry Associations (EIA).
The parties to the settlement include NSWMA; Bluebonnet Waste Control, Inc.; IESI Corp.; Republic Services Inc.; Waste Management Inc.; Businesses Against Flow Control; and the city of Dallas.
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