Less than a week after settling four lawsuits with five garbage haulers, Gwinnett County has been hit with another one.
Red Oak Sanitation of Gainesville filed suit in Gwinnett Superior Court this week accusing the county of violating a judge's order and the state constitution by proceeding with a new solid waste plan that restricts competition. The plan, adopted earlier this month, divides the county into five collection zones, each serviced by one of the garbage haulers involved in the settlement.
Currently there are nine haulers licensed to operate in Gwinnett.
Red Oak's court action mirrors many points raised in a suit filed by Waste Industries in federal District Court in December. That case is still pending.
The Gwinnett County Commission approved settlement of four earlier lawsuits on Tuesday night. Those suits, seeking more than $80 million in damages, were filed after the county adopted a solid waste plan in 2008 that was to be administered by a nonprofit agency. That plan, which granted exclusive franchises to two haulers, was stopped 10 days before it went into effect by Gwinnett Superior Court Judge Michael Clark.
Red Oak attorney Edwin Saginar claims the county's new solid waste plan restrains trade to create a monopolistic system of preferentially selected haulers.
"You can imagine what it's been like for these folks," Saginar said. "They don't know where their business is, what status it's in. All they know is as of right now, if nothing happens ... they're out of business here."
Red Oak has not specified damages. The company services 3,500 customers in Gwinnett.
Clark has granted the company an emergency hearing in the case scheduled for April 12.
Under the county's new solid waste plan, residents who live outside cities will pay $17.86 per month for the new service beginning July 1. Billing will appear on property tax bills, a stipulation county officials sought in order to fight illegal dumping by forcing all homeowners to have trash service. Tax bills this year will include a $321 charge for 18 months of garbage service covering July 1 of this year through December 2011.
The contract includes collection of trash, more than 30 recyclables, large household items and appliances. Residents will pay $10 per month directly to the hauler for yard waste pickup.
Gwinnett County Commission Chairman Charles Bannister acknowledged on Tuesday that there will be some opposition to the new plan. But, he said, counties are under threat of state sanctions if they don't develop meaningful solid waste plans that increase recycling and reduce the burden on landfills.
County spokesman Joe Sorenson said officials are studying the lawsuit.
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