City of Camarillo v. Spadys Disposal Service

This is an appeal from a judgment granting a preliminary injunction against the appellant enjoining it from hauling waste in the City of Camarillo.

Facts

The city manager for the City of Camarillo (hereinafter referred to as City) refused to renew the appellant’s solid waste hauling permit which expired December 31, 1981. The City refused to renew the appellant’s permit because it had concluded that Camarillo could not support more than one disposal company. Furthermore, the city council found that Camarillo would be adversely affected by the granting of an additional contract or permit for rubbish collection. The appellant continued to haul garbage within the city limits after its permit to do so had expired. The respondent filed a motion for preliminary injunction which was granted.

Analysis

The sole issue raised on appeal is whether or not the City’s act of refusing to grant waste-hauling permits to more than one company is violative of the “Sherman Antitrust Act” ( 15 U.S.C. § 1 ). States and municipalities are treated differently under the Sherman Act than nongovernmental persons and entities. While the language of 15 United States Code section 1 prohibits “Every…