Antitrust Law Daily Wrap Up, ANTITRUST—Ga. Sup. Ct.: Lowndes County immune from Sherman Act in waste disposal case, (Nov 7, 2014)

By Greg Hammond, J.D.

The municipality of Lowndes County, Georgia did not create an illegal monopoly in violation of the Sherman Act by authorizing an exclusive franchise for the collection and disposal of solid waste in unincorporated areas of the county, the Georgia Supreme Court has decided. The trial court’s decision, denying the county’s request for injunctive relief was therefore reversed (Advanced Disposal Services Middle Georgia, LLC v. Deep South Sanitation, LLC, November 3, 2014, Thompson, H.).

Lowndes County adopted an ordinance in December 2012, authorizing an exclusive franchise for the collection and disposal of solid waste from the estimated 12,000 residential customers living in the unincorporated areas of the county, and prohibiting the provision of solid waste collection and disposal services to those customers without a franchise or temporary permit issued by the county. The Lowndes County Board of Commissioners also approved a franchise agreement granting Advanced Disposal Services Middle Georgia, LLC an exclusive franchise for the collection and disposal of solid waste from residential customers living in those unincorporated areas. Prior to the ordinance and franchise agreement, Deep South Sanitation, LLC provided such waste collection and disposal services in unincorporated areas, and continued to offer such services after the ordinance was passed.

Lowndes County filed suit against Deep South, and Advanced Disposal filed a similar action, seeking an injunction that prohibits Deep South from providing its solid waste collection and disposal services in the unincorporated areas of the county. Deep South opposed the request, arguing—in part—that the ordinance created an illegal monopoly in violation of the Sherman Act. The trial court agreed with Deep South and denied the requests for injunctive relief. The county and Advanced Disposal both appealed the trial court’s order.

The Georgia Supreme Court reversed the trial court’s order, noting that it is “well-established that local governmental entities are immune from antitrust laws when engaged in anti-competitive conduct pursuant to a clearly expressed state policy.” Because the ordinance was enacted pursuant to the Georgia Comprehensive Solid Waste Management Act, the county’s actions were exempt from the Sherman Act. The trial court therefore erred when it denied injunctive relief to the county and Advanced Disposal, the Georgia Supreme Court determined.

The cases are Nos. S14A0784 and S14A0785.

Attorneys: Robert Claude Norman, Jr. (Jones Cork & Miller, LLP) for Advanced Disposal Services Middle Georgia, LLC. Robert Allen Plumb, Jr. (Langdale Vallotton, LLP) for Deep South Sanitation, LLC. James L. Elliott (Elliott, Blackburn & Gooding, PC) for Lowndes County.

Companies: Advanced Disposal Services Middle Georgia, LLC; Deep South Sanitation, LLC

Cases: Antitrust GeorgiaNews