PRESS ROOM

COUNTS I AND II OF CHESPEAKE LAWSUIT DISMISSED WITH PREJUDICE

(September 28, 2006; Chesapeake, Virginia)--Chesapeake Circuit Court Judge Thomas Forehand has granted SPSA's demurrers to Counts I and II of Chesapeake's complaint, the counts asking that Chesapeake be allowed to end its relationship with SPSA: "The Court is of the opinion that Count I of the Complaint fails to state a cause of action, because the Use and Support Agreement entered into between SPSA and Chesapeake clearly falls within "the plain, obvious, and rational meaning" of the term "written obligations" found in Chapter 596 of the 2000 Acts of Assembly.
            The Court further stated: "Chesapeake utilized its discretionary authority in exercising the granted power to contract for the collection and disposal of waste by electing to become a member of SPSA at its inception and by entering into the Use and Support Agreement with SPSA some twenty-three years ago. The Court is of the opinion that Count II of the Complaint fails to state a cause of action, in that nothing in the method selected by Chesapeake in exercising the granted power is unreasonable and the Use and Support Agreement neither deprives the City of its ability to protect the public health, safety and welfare, nor illegally barters away Chesapeake's legislative powers."
            The Court granted both demurrers with prejudice meaning that these claims are dismissed and cannot be re-filed. The Court further denied Chesapeake's motion for a preliminary injunction to prevent SPSA from entering a contract with Covanta.
            At 4 p.m. today, at SPSA's main office located at 723 Woodlake Drive, SPSA Executive Director John Hadfield and SPSA legal counsel will be available to respond to questions regarding this ruling.

        SPSA has been providing efficient and environmentally sound waste disposal services to the region and its residents since 1985. SPSA’s solid waste management system includes waste-to-energy, yard waste composting, drop-off and curbside recycling as well as other recycling programs, household hazardous waste collection, landfilling, landfill gas-to-energy and education programs. This integrated waste management system enables SPSA to put 57% of the waste it receives to a beneficial use, thus allowing the region to reduce its dependence on landfills.

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