For Your Data Rts Landfill Inc. V. Appalachian Waste Materials Systems Llc Illustration Brief

RTS Landfill Inc. v. Appalachian Waste Systems LLC case brief summary
598 S.E.2d 798 (2004)

CASE SYNOPSIS

Appellant sanitation companionship sued appellees, a express liability companionship (LLC) together with 2 people who owned the LLC, seeking an gild enforcing agreements the parties signed. Influenza A virus subtype H5N1 Georgia trial courtroom held that a provision inwards 1 understanding which gave the sanitation companionship the correct to buy the LLC together with a provision inwards to a greater extent than or less other understanding which required the LLC to purpose the company's landfill were invalid, together with the sanitation companionship appealed.

CASE FACTS
A sanitation companionship sold 1 of its divisions to an LLC, together with signed agreements alongside the LLC which required the LLC to deliver solid waste materials nether its command to the company's landfill, together with likewise gave the companionship the correct to buy the LLC for $ 500,000 less than whatever amount offered yesteryear a 3rd party. When a 3rd political party offered to buy a xx percentage involvement inwards the LLC for $ 2.5 million, the LLC informed the companionship well-nigh the offer. However, the companionship together with the LLC reached an impasse afterwards discussing the upshot of whether the companionship would practice its correct of outset refusal, together with the companionship filed suit, seeking an gild blocking the LLC from selling an involvement to the 3rd political party together with damages for breach of contract.

DISCUSSION

The appellate courtroom held that:
(1) the preemptive correct granted to the sanitation companionship was an unreasonable restraint on alienation because it was unlimited inwards duration together with allowed the companionship to pay $500,000 less than what a 3rd political party offered; but
(2) the trial courtroom mischaracterized the provision which required the LLC to purpose the company's landfill every bit an exclusive dealing provision together with erroneous concluded that it was void every bit an unreasonable restraint on trade.

CONCLUSION
The appellate courtroom affirmed the trial court's judgment declaring that the preemptive correct which the sanitation companionship received was an unreasonable restraint on alienation, merely reversed the trial court's judgment declaring that the provision inwards the parties' agreements which required the LLC to purpose the company's landfill was void every bit an unreasonable restraint on trade, together with remanded the illustration for reconsideration of the latter finding.

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