Broward Judge Rules In Favor Of Waste Management, Against Ron Bergeron In Long-Running Recycling Dispute

Miami FL

23 May, 2022

5:35 PM

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By Dan Christensen, Florida Bulldog 2022-05-21 Six acrimonious years of litigation that climaxed last month in a four-week trial, ended late Friday when a Broward judge ruled there was no evidence that Waste Management and its co-defendants conspired to ruin the recycling business of Davie businessman Ron Bergeron. Chief Judge Jack Tuter's sweeping ruling, rejecting Bergeron's legal arguments at every turn, is a crushing defeat for the wealthy, politically connected land baron who currently serves on the governing board of the South Florida Water Management District. "It is adjudged that Plaintiff, Bergeron Environmental and Recycling LLC, take nothing by this action," Tuter wrote in his 22-page order. The judge then ordered Bergeron to pay what could amount to millions of dollars in attorney fees and costs for those he sued – defendants Waste Management, LGL Reycling LLC (formerly known as Sun Recycling LLC, and LGL officers Anthony Lomangino, Charles Gusmano, Charles Lomangino and John Casagrande. The roots of the case trace to 2011 when Bergeron and Anthony Lomangino got together to form Sun/Bergeron, a 50-50 joint venture (JV) for the purpose of bidding on municipal contracts to dispose of solid waste and recyclables. Sun, part of Southern Waste Systems (SWS) had the infrastructure, trucks and disposal facilities. Bergeron had "the city and county contacts and an honorable reputation in Broward County," Tuter wrote. For decades, Waste Management had a lock on Broward's garbage services. But by 2013, after much lobbying, Sun/Bergeron had pried away 17 municipal contracts. They were to last five years, absent an extension. Under Sun/Bergeron the costs of disposal services went down dramatically. But half-way through, Bergeron found out that Lomangino was shopping his assets to the highest bidder. Bergeron has contended Lomangino hid his talks with Waste Management. Tuter, however, said the evidence presented showed that Sun had advised Bergeron Environmental they were in negotiations "to sell most, but not all of their assets, probably to Waste Management." A provision in the joint venture agreement required both partners – Lomangino and Bergeron – consent on major issues and that consent "shall not be unreasonably withheld." Bergeron Environmental's testimony about what they knew was "inconsistent with the evidence," Tuter wrote. "Not only did SUN leave a substantial paper trail advising BERI (Bergeron Environmental) of a potential asset sale, they made it clear in memos, emails and in face-to-face conversations." The $525 million sale, via what's known as an asset purchase agreement, was done in January 2016. It gave Waste Management, owner of the mountainous Monarch Hill landfill in Pompano Beach, control of the recycling waste stream. Much trash that was formerly recycled is now dumped at Monarch Hill. Still, the deal was odd for a reason left unaddressed by the judge: one month before, state anti-trust regulators under then Attorney General Pam Bondi issued a secret letter to lawyers for Waste Management had agreed to OK the trash giant's purchase of SWS after being assured the cities would be able to renew their contracts in 2018 on the same terms and conditions. The cities were never informed of that condition or others mentioned in the letter. Florida Bulldog obtained a copy of the letter in May 2018 after a clerk's error. Tuter's order goes on to note that a significant part of the testimony in the case had to do with a July 2015 letter from Bergeron Environmental to Sun "setting out 13 conditions" required for Bergeron to consent to the deal. "Despite protestations to the contrary by BERI, the Court finds all of the demands were financial in nature. Beri's financial demands totaled 6.3 million dollars and were met with a 4.3 million dollar offer" by Sun. According to the judge, that $2 million dollar difference is what led to the lawsuit. "As altruistic as the JV began, i.e to bring competition to the marketplace for disposal services in Broward County, in the end had the JV partners agreed to financial terms this litigation would never (have) ensued," Tuter wrote. [More to follow] Florida Bulldog is an independent, nonpartisan, not-for-profit news site providing free authoritative local and regional watchdog reporting in the public interest. Outlier covering 9/11. Follow us on Facebook or Twitter. You can support Florida Bulldog here.