Judge Dismisses Lawsuit Against SPSA

A Virginia judge dismisses claim by C&D company that agency engaged in predatory pricing.

A Suffolk (Virginia) Circuit Court has dismissed all charges filed by Holland Enterprises, a local construction and demolition landfill company, against the Southeastern Public Service Authority over a program that SPSA offered several years ago.

 

The judge, Rodham Delk, Jr., dismissed the $20 million lawsuit filed by Holland, which claimed that the regional waste authority provided predatory pricing when it introduced the program.

 

The judge has not yet decided whether SPSA properly may accept for disposal construction and demolition debris in competition with Holland.

 

While dismissing the charge, the judge in the case noted in opinion that at this stage of the case, he must accept all of Holland’s allegations as true.

 

The suit, filed earlier this year, claimed that SPSA’s contract with Bay Disposal was a “sweetheart deal” which violated local law.

 

In refuting the claim, the SPSA claimed that the contract offered to Bay is available to any of its customers under the same terms and conditions.

 

The Court has asked the parties to submit briefs addressing whether the Court has the authority to enjoin or prevent SPSA from accepting construction and demolition debris should the Court conclude that SPSA is not allowed to accept such debris either from Bay Disposal or under the circumstances of this case. 

 

In a statement by SPSA, they note the following: “As we understand the Court’s ruling, the conspiracy and antitrust claims now have been permanently dismissed by the Court.”

 

According to local press reports, SPSA’s board of directors never voted on the Bay Disposal contract, nor was a public hearing held about it. Only after the contract with Bay was publicized did the board hold a public hearing and agree to offer similar costs and services to other qualified waste haulers.