Resource Recycling
  • The Latest
  • Podcast
  • Analysis
    • All
    • Certification Scorecard
    • Industry Announcements
    • Opinion
    Google supports right-to-repair policy in Oregon

    Alphabet’s AI spending, processor sales broaden ITAD outlook

    e-Stewards to develop an ITAD-specific standard

    Certification scorecard — week of Nov. 2

    Groups publish national recycling acceptance data

    PC shipments slump as data center investment surges

    Apple: iPhone upgrades soar amid rising memory costs

    Artificial intelligence is altering the marketplace for ITAD providers in numerous ways. | Shutterstock

    AI alters ITAD economics

    Industry announcements for January 2026

    Industry announcements for November 2026

  • Conferences
    • Resource Recycling Conference
    • Plastics Recycling Conference
    • E-Scrap: The Longevity Conference
    • Textiles Recovery Summit
  • Publications
    • E-Scrap News
    • Plastics Recycling Update
    • Policy Now
    • Resource Recycling
    • Other Topics
      • All Topics
      • Brand Owners
      • Critical Minerals
      • Glass
      • Grant Watch / RFPs
      • Markets
      • Organics
      • Packaging
      • Research
      • Technology
      • Textiles
Subscribe
No Result
View All Result
Resource Recycling
  • The Latest
  • Podcast
  • Analysis
    • All
    • Certification Scorecard
    • Industry Announcements
    • Opinion
    Google supports right-to-repair policy in Oregon

    Alphabet’s AI spending, processor sales broaden ITAD outlook

    e-Stewards to develop an ITAD-specific standard

    Certification scorecard — week of Nov. 2

    Groups publish national recycling acceptance data

    PC shipments slump as data center investment surges

    Apple: iPhone upgrades soar amid rising memory costs

    Artificial intelligence is altering the marketplace for ITAD providers in numerous ways. | Shutterstock

    AI alters ITAD economics

    Industry announcements for January 2026

    Industry announcements for November 2026

  • Conferences
    • Resource Recycling Conference
    • Plastics Recycling Conference
    • E-Scrap: The Longevity Conference
    • Textiles Recovery Summit
  • Publications
    • E-Scrap News
    • Plastics Recycling Update
    • Policy Now
    • Resource Recycling
    • Other Topics
      • All Topics
      • Brand Owners
      • Critical Minerals
      • Glass
      • Grant Watch / RFPs
      • Markets
      • Organics
      • Packaging
      • Research
      • Technology
      • Textiles
Subscribe
No Result
View All Result
Resource Recycling
No Result
View All Result
Home Recycling

Republic files suit over Connecticut contamination

byJared Paben
June 4, 2019
in Recycling

A division of Republic Services recently brought legal action against a public authority, claiming it is handling loads far dirtier than what the two sides agreed to in a contract.

The lawsuit is between FCR, LLC and Connecticut’s Materials Innovation and Recycling Authority (MIRA) and concerns their six-year-old recyclables sorting and marketing pact.

FCR operates under the name ReCommunity Hartford, LLC. An operator of MRFs around the country, ReCommunity was acquired in October 2017 by Republic Services, the second-largest residential garbage and recycling company in North America.

MIRA, meanwhile, is a quasi-public organization that contracts with FCR to operate a MIRA-owned MRF in Hartford. The facility receives material from 70 Connecticut municipalities.

The lawsuit, filed May 2 in a state trial court in Hartford, says MIRA is breaching its contract by requiring FCR to process loads with excessive levels of contamination. As a result, FCR is operating the facility at a loss.

A leader at MIRA, however, told Resource Recycling the contract guarantees FCR will pay for residue over 5%. It was structured that way in response to MIRA’s concerns about increased contamination from switching from dual-stream to single-stream collection, said Tom Gaffey, director of recycling and enforcement at MIRA.

“We knew that with single stream their contamination rate was going to rise. Because of our concerns, that’s why, contractually, they agreed to pay for any costs for disposal over 5%,” he said.

The case underscores how market struggles for recovered commodities are causing tension between the two sides of public-private partnerships nationwide.

Operating MRF at ‘substantial loss’

FCR’s complaint alleges MIRA is violating the 2013 contract. According to FCR, the contract states that the company doesn’t need to sort incoming loads with contamination levels exceeding 5%. The deal also stipulates the company doesn’t have to process any individual loads that originate from multiple municipalities (because the processor would not be able to pinpoint which community was generating contaminated material).

FCR claims MIRA isn’t enforcing the contamination limit or the one-source-per-load requirement via its agreements with communities.

An audit conducted by MSW Consultants earlier this year showed the incoming stream consists of 31% contamination. According to the complaint, MSW Consultants pointed out that with more modern sorting technologies, some of the materials identified as unacceptable materials in the contract could actually be recovered.

“But even based on present-day industry guidelines, MSW still found that more than 24% of the materials being delivered to the Recycling Facility cannot be recovered,” the complaint states.

FCR estimates the unacceptable loads of recyclables are costing the company $279,000 per month in additional costs, or over $3 million a year.

The contract allows MIRA to unilaterally add materials considered “recyclable” to the program. But if doing so raises FCR’s costs, MIRA is required by the contract to negotiate with FCR in good faith over what kind of additional compensation the processor would receive, the complaint claims.

FCR claims that by allowing excessive levels of contamination, MIRA is effectively changing the scope of what the company must sort, yet MIRA won’t negotiate added compensation.

“MIRA simply cannot have it both ways,” the complaint states. “Either it must fulfill its part of the bargain by requiring municipalities to comply with their municipal service agreements and ensuring that the recycling stream coming to the Recycling Facility meets the terms of the parties’ Agreement. Or it must compensate FCR for the additional expenses it is incurring as a direct result of MIRA’s failure to perform its contractual obligations.”

Because FCR only gets paid via revenue from commodity sales, it is operating the facility at a “substantial loss,” according to the suit. FCR estimates the unacceptable loads of recyclables are costing the company $279,000 per month in additional costs, or over $3 million a year.

FCR is asking the court to allow FCR to terminate its agreement without penalty and to award it monetary damages to be determined at trial.

MIRA ‘gave up a lot of money for a lot of years’

Attorneys for MIRA haven’t formally responded to the lawsuit in court. But the FCR complaint notes MIRA’s position is that because the authority never formally amended the acceptable recyclables list, it’s not obligated to negotiate increased compensation for FCR.

Gaffey, who negotiated the contract, said that years ago FCR was pushing for a switch to single-stream recycling, but MIRA had concerns about increased contamination. FCR assured MIRA that the increased volumes of material would more than make up for the extra contamination, he said. To allay MIRA’s concerns about contamination, FCR agreed in the contract to pay for disposal costs for residue over 5%. FCR also gets the lowest gate rate at the incinerator when disposing of that residue, he said.

MIRA agreed to switch to single-stream but negotiated the contract conservatively, reducing the potential revenue it would receive when markets were good, he said.

“We gave up a lot of money for a lot of years,” Gaffey said.

Under the deal, MIRA gets a tip fee for every ton that enters the MRF. As far as revenue sharing, MIRA keeps 50% of revenues above a processing cost of $62 a ton for all commodities. The 50% from OCC and ONP is everything between the $62 processing cost and the domestic bale price as listed in the Pulp and Paper Week Yellow Sheet for the New York high price. But FCR doesn’t have to split any revenue over the Yellow Sheet price, and for some time, FCR was selling fiber to Chinese buyers for double the domestic price, Gaffey said.

“They enjoyed that for a number of years,” he said. “And it wasn’t like they were offering to share with us any excess revenue they were making.”

After China restricted imports, FCR “started talking about how they wanted us to share in their pain,” he said.

The contract is currently set to expire June 30, 2020. MIRA can extend it for one additional year, to June 30, 2021.

The Register Citizen newspaper covered the lawsuit and discussed the state’s recyclables market struggles since China’s decision to restrict imports.

The Asian action has had the effect of driving down prices for some types of bales. For example, OCC was selling for about $32 per ton in May, down from $87 a year earlier. Mixed paper has a negative value in many areas. Those two fiber grades make up the majority of incoming tonnages at most MRFs.

The lower prices have strained many municipal-processor contracts, leading to governments paying more for recycling or MRF operators taking losses until they can renegotiate or exit the contracts. Like other haulers, Republic has experienced falling recycling revenues and, in response, has worked to renegotiate contracts to secure pricing increases from customers.

The MIRA case isn’t the first time ReCommunity has been involved with a contract dispute that escalated to court action.

In July 2016, Recommunity filed a lawsuit against the city of Ann Arbor, Mich. The company claimed the city wrongly canceled its contract to operate a MRF because a market downturn changed the contract from a money-maker to a cost center for the city. Ann Arbor cited unsafe conditions at the MRF in its decision to end the agreement.

Republic acquired Recommunity shortly before a judge threw out some of Recommunity’s claims but left others alive. Shortly thereafter, the parties agreed to drop the case without either side cutting a check.

Photo credit: Freedomz/Shutterstock
 

Tags: LegalLocal ProgramsMarkets
TweetShare
Jared Paben

Jared Paben

Related Posts

Stoa hopes to establish AI hardware marketplace

Stoa hopes to establish AI hardware marketplace

byPaul Lane
November 3, 2026

Startup looks to give buyers, sellers and lenders a central place to compare prices and complete deals.

Bale pricing mostly flat for September

Northeast recycled commodity prices rise in Q2

byKeith Loria
October 30, 2026

The increase in post-consumer bale pricing came despite a steep drop in PET.

EPR at work: Sask adds foam densifier

EPR at work: Sask adds foam densifier

byAntoinette Smith
October 29, 2026

Transporting rigid packaging foams is challenging due to being lightweight and bulky, but the new densifier compacts the material at...

Washington studies ag plastics recovery potential

Washington studies ag plastics recovery potential

byKeith Loria
October 26, 2026

The state seeks data on pesticide and fertilizer containers, silage and bale wrap, seed and feed bags, twine and tubing.

Dow bullish on PE pricing into 2027

Dow bullish on PE pricing into 2027

byAntoinette Smith
October 23, 2026

Executives cited elevated feedstock costs, lower inventories and constrained production resulting from the US war in Iran as support for...

Hitachi Energy partner turns spools into PVC pipe feed

Hitachi Energy partner turns spools into PVC pipe feed

byAntoinette Smith
October 22, 2026

A grant-funded granulator at J. Carter Enterprises has recovered about 250,000 pounds of plastic from Hitachi Energy’s oversized wire spools...

Load More
Next Post
How much Indorama paid for a U.S. PET processor

How much Indorama paid for a U.S. PET processor

2026 Buyers’ Guide

Equipment, services and technology suppliers serving the recycling industry.

Browse the Guide

More Posts

NexPoint Materials to shutter Alabama plastics plant

NexPoint Materials to shutter Alabama plastics plant

November 4, 2026
DOE reinstates $375m Eastman recycling grant

DOE reinstates $375m Eastman recycling grant

October 30, 2026
New CAA chief talks markets, industry support

New CAA chief talks markets, industry support

November 4, 2026
A Republic Services truck picks up a recycling cart in Fort Collins, Colorado.

Republic reports higher recycling revenue

November 2, 2026
Apple looks to spark growth of e-scrap recycling

Apple looks to spark growth of e-scrap recycling

October 28, 2026

LYB looks to EU for chem recycling growth

November 2, 2026
Bale pricing mostly flat for September

Northeast recycled commodity prices rise in Q2

October 30, 2026
The missing link in e-plastic recycling

The missing link in e-plastic recycling

October 28, 2026

NJ solar panel recycling rules face legal review

November 2, 2026

Electronics recycling legislation evolves with devices

November 2, 2026
Load More

About & Publications

About Us

Staff
Job Listings

Archive

Magazines

Work With Us

Advertise
Contact
Terms and Privacy

Newsletters

Get the latest recycling news and analysis delivered to your inbox every week. Stay ahead on industry trends, policy updates, and insights from programs, processors, and innovators.

Subscribe

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • The Latest
  • Podcast
  • Analysis
  • Recycling
  • E-Scrap
  • Plastics
  • Policy Now
  • Conferences
    • E-Scrap Conference
    • Plastics Recycling Conference
    • Resource Recycling Conference
    • Textiles Recovery Summit
  • Magazines
  • About Us
  • Advertise
  • Archive
  • Job Listings
  • Staff
Subscribe
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.