ContractsProf Blog

Editor: Myanna Dellinger
University of South Dakota School of Law

Monday, December 27, 2004

Spot the issues

Canadian_trash The city of Toronto is locked in a dispute with its trash hauler, Wilson Logistics, Inc.  Toronto, which has a contract with Wilson to haul Canadian trash to the U.S. for disposal, says the company is in breach by failing to renew a $20 million performance bond.  Toronto is seeking specific performance, asking the court to order Wilson to renew the bond.

Wilson, meanwhile, has been trying to renegotiate the deal.  The parties have a 20-year contract to haul 1.3 million tonnes of trash a year.  But Wilson says U.S. trucking regulations are now driving up costs.  To avoid breaking the rules, the company has to use two sets of drivers, not one.

Wilson, which at one point said it might "fold up its tent," will continue to haul the trash, it says, but claims its financial condition makes it impracticable to get the bond.

The company sends 130 truckloads of Canadian garbage to the U.S. every day.  In a related story, Michigan residents aren't happy about it, since the Toronto garbage doesn't comply with Michigan environmental standards.   The state is exploring ways to ensure that the Canadians keep their own waste.  "You make the mess, you should find a way of disposing it in your back yard," says Port Huron City Manager Thomas Hutka.

(Photo: Canadian trash arriving at the Carleton Farms landfill in Michigan, from the Detroit Free Press.)

In the News | Permalink

TrackBack URL for this entry:

Listed below are links to weblogs that reference Spot the issues:


Post a comment

If you do not complete your comment within 15 minutes, it will be lost. For longer comments, you may want to draft them in Word or another program and then copy them into this comment box.