Texas Disposal Systems Wins $25 Million Verdict Against Waste Management of Texas

Texas Disposal Systems Landfill Inc. (TDS) announced that it has received a $25.45 million verdict from a Travis County, Texas, State District jury in its lawsuit against Waste Management of Texas Inc. (WM) The jury awarded $5.45 million in actual damages and $20 million in exemplary damages, finding that WM had circulated false and defamatory statements about TDS and its Austin, Texas, landfill in 1997 after TDS received approval from the San Antonio City Council for a 30-year landfill disposal, transfer station and recycling contract. At the time, the companies were competing for a 30-year contract with Austin.

“TDS is very pleased to have had the opportunity to fairly present its case and to see justice prevail,” says Bob Gregory, CEO of TDS. “We hope Waste Management’s board of directors will receive the jury’s apparent message concerning the acceptable limits of fair competitive practices.”

In response to the decision, Don Smith, area vice president for WM of South Texas said, “WM Texas is very disappointed by this decision. We will be seeking prompt relief from the trial court and are prepared to appeal this award to the highest level.”

• Falsely implied that TDS’s southeast Travis County facility was environmentally less protective than other area landfills;
• Falsely stated that TDS had obtained an exception to the important and rigorous environmental rules affecting landfills; and
• Falsely stated that TDS accepted types of waste that are not permitted under State rules and under its permit.

“Significant errors by the Court led to the verdict and Waste Management is confident that the Court of Appeals and/or the Texas Supreme Court will overturn it,” a statement issued by WM states.

According to a TDS report, Waste Management’s statements were made in a grassroots campaign to leaders in Austin’s environmental community, as well as to members of the media and Austin City Council, without identifying that the source of the statements was Waste Management. 

The case was filed in 1997 and originally tried in early 2003; however, in 2006, the Texas Third Court of Appeals remanded the case for retrial.