In its unauthored opinion, a three-judge panel disagreed that a lower court improperly tossed Racketeering Influenced and Corrupt Organization claims that Santori Little, Charles Gray and Tamara Khelifa brought against the city of Valley, Alabama, and its garbage collection contractor, AmWaste LLC. The panel agreed that Valley can't be held liable for causing the three residents to be charged with misdemeanor crimes for alleged delinquent garbage collection fees.
"Here, Valley did not have authority or responsibility for the state court warrants and orders setting bail," the panel said. "Little, Gray, and Khelifa have not pleaded a shared purpose between Valley and Amwaste to make money through the alleged extortion of garbage collection fees. We therefore affirm its order dismissing the second amended complaint."
The three plaintiffs brought their January 2023 suit against Valley and Amwaste in the U.S. District Court for the Middle District of Alabama, alleging their civil rights were violated after the city referred criminal charges to a prosecutor over the unpaid garbage collection fees. The suit was amended for a second time in September 2023 to include a count of unjust enrichment against the city.
Among their allegations, the plaintiffs said the city and Amwaste conspired to use the threat of criminal prosecution in order to get people to pay their solid waste fees. The district court dismissed the plaintiffs' second amended complaint in December 2023.
The Eleventh Circuit panel held oral arguments on Nov. 17 in Birmingham, Alabama. Brian Clark of Wiggins Childs Pantazis Fisher & Goldfarb LLC, representing the plaintiffs, told the panel that the city caused his clients to be incarcerated after referring criminal charges to the state prosecutor for what amounted to nonjailable offenses under the Alabama state constitution.
Robbie Hyde of Alexander Hyde LLC represented the city of Valley before the panel, arguing that the plaintiffs were actually jailed after failing to appear for the court cases. Hyde also said the city doesn't control what the prosecutor does, adding that filing charges is entirely within the prosecutor's discretion.
Amwaste was represented by Benjamin B. Coulter of Burr & Forman LLP, who told the panel his client wasn't incentivized to participate in a conspiracy to help the city collect delinquent fees, arguing that Amwaste was just fulfilling its contract for a fixed fee.
The panel noted in its opinion that the three plaintiffs failed to allege "a shared purpose" to establish a RICO enterprise claim against Valley and Amwaste.
Amwaste's trash collection was "a wholly innocent activity undertaken as a course of regular business" for which it received a fixed fee, the panel said, adding that the only obvious explanation was that Valley wanted its trash picked up and that Amwaste wanted to make money off its contract.
The panel also said the prosecutor and judges were acting on behalf of the state, saying the city didn't have authority to issue arrest warrants or orders setting bail.
"The intervening conduct of the independent state actors broke the causal chain between Valley's misdemeanor complaints and the alleged Constitutional violations," the panel said.
Counsel for the parties did not immediately respond to emailed requests for comment on Tuesday.
U.S. Circuit Judges William Pryor, Barbara Lagoa and Embry Kidd sat for the Eleventh Circuit panel.
The residents are represented by Brian Clark of Wiggins Childs Pantazis Fisher & Goldfarb LLC.
The city is represented by Robbie A. Hyde of Alexander Hyde LLC.
Amwaste is represented by Benjamin B. Coulter of Burr & Forman LLP.
The case is Little et al. v. The City of Valley, Alabama et al., case number24-10120, in theU.S. Court of Appeals for the Eleventh Circuit.
--Editing by Amy Rowe.
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