RSI, a company co-owned by Madison, Alabama’s Councilman Ray Stubblefield is suing Mayor Jan Wells and the city of Madison for $2 million each, contending the city broke a contract with the company to recycle construction and demolition waste.
In its suit RSI asks for $2 million in compensatory damages from the city and $2 million from Wells, in addition to punitive damages and court costs.
RSI alleges that Madison breached a three-year contract for wood-waste recycling services when it suspended use of the company late last month. The contract was approved by the City Council at its Dec. 9, 2002, meeting.
According to local press reports, the suit further alleges that "Wells, for personal motives, interfered with the contractual relationship between the City of Madison and RSI by, among other things, disrupting and/or preventing the delivery of the City of Madison's wood waste to RSI.
"Upon further information and belief, the actions of Wells were malicious, without justification, and exceeded the scope of her authority."
An attorney representing the city said the mayor had suspended shipments to the company after a number of questions were brought up over whether the company was operating with the proper licenses. The Madison City Council voted Nov. 13th to give Recycling Solutions Inc. a 30-day notice of the city's intent to terminate its contract with the company.
The attorney said the city only filed to terminate the contract after the company filed the multi-million lawsuit.
According to the attorney, the Alabama Department of Environmental Management has been investigating the RSI site due to complaints from a host of neighbors.