Dive Brief:

• A recycling facility in Arcata, CA, settled a civil lawsuit it filed against the Humboldt Waste Management Authority (HWMA). The suit was ongoing for the past three years.
• The Arcata Community Recycling Center (ACRC) agreed to an out-of-court settlement of $10,000 paid by HWMA, which does not have either side admitting to wrongdoing. In exchange for the payment, the ACRC will drop the suit against the authority and the lawsuit cannot be refiled. 
• The lawsuit was initially filed in 2011 by the recycling facility; the ACRA board decided to settle after a judge dismissed six out of seven causes of action against the waste authority. 

Dive Insight:

In the lawsuit, the ACRA alleged the HWMA committed civil rights violations, took/damaged property without compensation, misappropriated trade secrets and intentionally disrupted business relationships between the facility and other entities. All were dismissed with the exception of negligent interference with prospective economic advantage. 

The ACRA also alleged that the HWMA improperly awarded a public recycling contract to a competitor in July 2011. As a result of the contract dispute, ACRC announced it was closing as the recycling center lost half of its business when it didn’t win the bid. 

The recycling facility plans to withdraw its nonprofit status.