Town of Welsh v. Jefferson Davis Parish Sanitary Landfill Commission

Citations: 576 So. 2d 1112; 1991 La. App. LEXIS 470; 1991 WL 33653Docket: No. 89-913

Court: Louisiana Court of Appeal; March 12, 1991; Louisiana; State Appellate Court

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The Town of Welsh initiated a declaratory judgment action against the Jefferson Davis Parish Sanitary Landfill Commission to have two contracts with American Waste and Pollution Control Company declared null and void. The trial court ruled that the contracts transferred operational control of the landfill from the Commission to American Waste without the required unanimous consent from the governing bodies that created the Commission, leading to the contracts being nullified. The court affirmed that the issue at hand was whether the contracts effectively transferred day-to-day management and operations of the landfill. The Commission was established under Louisiana law, specifically LSA R.S. 33:1321 et seq. and authorized by the Louisiana Constitution, which allows political subdivisions to cooperate on public projects. LSA R.S. 33:1324 permits these entities to enter agreements for waste management, while LSA R.S. 33:1333 specifically addresses solid waste collection and disposal agreements. The Town of Welsh filed the lawsuit on February 17, 1988, with the Jefferson Davis Parish Police Jury joining as a plaintiff and American Waste as a defendant. The first contract, dated November 5, 1987, involved hiring American Waste for landfill maintenance and operational tasks for a term of 25 years or until closure, contingent upon the modification of the Commission’s standard permit from the Louisiana Department of Environmental Quality.

The interim contract, effective January 6, 1988, allows American Waste to operate and maintain the landfill until certain conditions from the initial contract are fulfilled. It details the operational services and compensation for American Waste's work, with the contract filed as defendant’s Exhibit D. Both contracts stipulate that the Commission maintains control over day-to-day operations at the landfill. Welsh and the Police Jury argue that the contracts violate Article V of the charter by transferring operational control to American Waste without unanimous consent from all political subdivisions involved. Article V states that while the Commission can employ personnel for landfill operations, any transfer of control to third parties requires unanimous approval from all member governmental bodies. American Waste contends that the contracts clearly reserve operational control with the Commission and that their assigned duties do not constitute a delegation of control. Conversely, Welsh and the Police Jury assert that despite the language claiming retained control, the contracts effectively surrender operational management to American Waste. The court, after reviewing the contracts and arguments, agrees with Welsh and the Police Jury, concluding that the Commission has indeed surrendered control. Thus, without unanimous consent, the contracts are deemed null and void under Article V of the charter. In its appeal, American Waste highlights contractual provisions asserting the Commission's control over daily operations, including rights to inspect the facility and modify permits.

Control of the Jefferson Davis Parish Sanitary Landfill was improperly transferred to American Waste without the unanimous consent of the governing bodies, despite existing contractual provisions. The trial court determined that the authority granted to American Waste constituted effective control over the landfill, including rights to modify the facility, set fees, and manage operations. American Waste is responsible for operational aspects such as reporting, groundwater testing, and utility payments, while the Commission must seek permit modifications as requested by American Waste. After reviewing relevant contracts and evidence, the court found no error in its conclusion. The trial court's declaratory judgment declaring the contracts null and void was affirmed, with costs assessed to American Waste and Pollution Control Company.