Opinion ID: 2314437
Heading Depth: 1
Heading Rank: 7

Heading: Empire's and Danella's Rights Under Pre-existing Contracts

Text: The next issue is whether the Ordinance violates the Contracts Clauses of the United States and Pennsylvania Constitutions by impairing the contractual relationship between Empire and Danella. The Act provides a limited exemption for pre-existing waste-disposal contracts from the mandatory county planning process by setting out a transition mechanism that protects such contracts but prohibits renewals of these contracts or new contracts if the renewal or new contract is inconsistent with the adopted and approved county plan. 53 P.S. § 4000.506. [17] Section 7(a) of the Ordinance provides that nothing is to impair pre-existing contracts, which are defined in Section 2 of the Ordinance as: [a]ny contract for the collection, transportation, processing or disposal of Regulated Municipal Waste generated or located within the County which (i) was legally entered into, (ii) when entered into was legally enforceable, and (iii) is protected from interference or modification by County plans. . . . The County Plan set a grandfathering date for pre-existing contracts, pursuant to section 506 of the Act, as the effective date of the County Plan, i.e., April 24, 1991.