Tough Year for the Garbage Business in Compton

I don't know how I missed this, but it's out in the most recent Verdict Search California (paid subscription required) and appeared not long ago in The Compton Bulletin. 

The target for this blog is the small to mid-sized business with litigation problems in California, and Hub City Solid Waste Services had some huge ones.  In 2001, it landed a 15-year, $100 million waste hauling franchise agreement from the City of Compton.  Within a matter of weeks, Compton's then mayor and two of its city council members started getting thousands of dollars in campaign contributions from -- guess who? -- Hub City.  Hub's owner tried to get a similar deal from another Southern California city -- Carson -- which resulted in his being convicted of attempted bribery.  At that point, Compton understandably decided to audit Hub's books.  It followed the money and terminated Hub's contract.

Hub decided to sue Compton.  Bad idea.  Compton cross-complained back at Hub, and at its owner, Aloyan, to get all of its money back under California Government Code section 1090 and following.  In mid-2006, the trial judge ruled that Aloyan and Hub were alter egos (so each could be held responsible for the wrongdoing of the other) and that the termination of the contract was proper, given the evidence of bribery.  Then, late last year, she turned the whole thing over to a jury, which ruled in favor of Compton on both the complaint -- finding the termination proper -- and its cross complaint, awarding the city $22,402,759 against Hub and Aloyan.  Read more here.