Lawsuit challenges towns with single waste haulers

Twenty independent waste haulers barred from doing business in 11 suburbs are taking their case to court.

The group, which filed a federal lawsuit seeking damages in excess of $150,000, is targeting municipalities that passed ordinances requiring all residents and companies to use the services of one designated hauler.

The haulers, some of which only have a couple trucks, don't aim to take over a town's regular trash service. Rather, they're seeking the opportunity to compete for individual projects ranging from home remodels to a building demolition.

Hoffman Estates, Mount Prospect, Wheeling, Prospect Heights, Addison, Oakbrook Terrace, Darien, Evanston, Niles, Northfield and Wilmette are named in the suit.

Wendy and Rob Gold, who own plaintiff MBL Recycling Inc. in Palatine, said their family-owned business is suffering with the growing trend of municipalities contracting single haulers.

"We had no choice but to resort to this. One by one these villages are locking us out and it's killing our business," Wendy Gold said. "We're just trying to allow our companies to compete for business."

The plaintiff companies haul and remove private and commercial waste - mostly construction debris - in bins known as roll-off containers. Those ignoring the rules face hefty fines.

ARC Disposal, Flood Bros. Disposal, Allied Waste Services and Waste Management are among the companies with the municipal contracts. Last year, Hoffman Estates approved an exclusive contract with Groot Industries for commercial waste hauling.

"Groot was already handling our residential waste and this was an opportunity to streamline pricing and the number of vehicles coming in and out of the village," Village Manager Jim Norris said. "It also encourages commercial recycling, which wasn't being done on a significant scale."

Norris added that prices are typically lower because the hauler serves the entire community.

But David Novoselsky, one of the attorneys representing the plaintiffs, said the rates the 11 municipalities charge are often higher because of a lack of open competition. He also said every single one of his clients recycle including MBL, which maintains it recycles 75 percent of the material it collects. He also disputes the argument that allowing competition would add trucks or congestion to the streets.

"We're not talking about garbage pickup. This is one bin requiring one truck. What difference does it make whose truck it is," Novoselsky said.

The attorney is preparing to drop Niles from the suit after officials agreed to amend their ordinance to exclude roll-off containers. He's also about to add several contractors as plaintiffs upset over not being able to use their preferred haulers in those towns.