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Incorporated Village of Rockville Centre v. Hempstead, Town of

Citation: 30 ELR 20208
No. No. 98-9571, 196 F.3d 395/(2d Cir., 11/18/1999)

The court upholds a district court decision finding that an intermunicipal agreement between a town and several villages concerning the disposal of solid waste does not violate the dormant U.S. Commerce Clause. The agreement required each village to deliver all waste generated within its jurisdiction to the town and to pay various fees to help finance the town's cost of disposal. The town was obliged to accept and dispose of all waste. The court first holds that the town entered into the agreement as a market participant. A private party seeking to enter the waste disposal market could have engaged in exactly the same kind of actions as those taken by the town. Therefore, the intermunicipal agreement does not improperly govern the waste collection market by forcing the villages to use the town's disposal facilities. The court next finds that the town's alleged threat to enact a flow control ordinance if the villages did not enter into the agreement was insufficient to transform the town into a market regulator under the circumstances of this case.

Counsel for Plaintiffs
Peter J. Mastaglio
Cullen & Dykman
Garden City Center
100 Quentin Roosevelt Blvd., Garden City NY 11530
(516) 357-3700

Counsel for Defendants
Sy Gruza
Beveridge & Diamond
477 Madison Ave., 15th Fl., New York NY 10022
(212) 702-5400

Before Cabranes and Sotomayor, JJ.