Top Defense Result: Arata Equipment Co. v. Recology Inc.

Breach of contract

San Mateo County

Superior Court Judge Joseph C. Scott

Defense lawyers: Arnold & Porter LLP, Jonathan W. Hughes, Jeremy T. Kamras, Ginamarie Caya, Kenneth G. Hausman

Plaintiff's lawyers: Quadros & Johnson LLP, Benjamin A. Johnson

A courtroom battle between waste collector Recology Inc. and a company that formerly supplied its garbage trucks ended in September with a defense win for the trash hauler on $10.6 million in breach of contract claims.

The tiff stared when Recology learned that garbage truck dealer Arata Equipment Co.'s president had invested in a competitor and allegedly made disparaging public comments about Recology. Although Recology had been among Arata's most prominent customers, news of the investment soured the relationship.

Recology retaliated by striking a sales deal directly with the company that manufactured the trucks, Lodal Inc. That eliminated Arata's role as distributor of Lodal's trucks.

Arata sued over the deal, asserting that Recology had violated contractual terms. Arata Equipment Co. v. Recology Inc., CIV497024 (San Mateo County Sup. Ct., filed July 20, 2010).

Jurors didn't buy it, in part because Arata's distributorship agreement with Lodal contained a clause reserving to Lodal the right to make direct sales to customers.

An earlier suit by Arata against Lodal went nowhere for the same reason, was dismissed on summary judgment and the dismissal affirmed on appeal.

- John Roemer