RTS Landfill Inc. v. Appalachian Waste Systems LLC

598 S.E.2d 798 (2004)

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RTS Landfill Inc. v. Appalachian Waste Systems LLC

Supreme Court of Georgia
598 S.E.2d 798 (2004)

Facts

RTS Landfill Inc. (RTS) sold one of its business divisions, Starr Sanitation (Starr) to Appalachian Waste Systems (Appalachian). The purchase agreement gave RTS a preemptive right of first refusal if Appalachian tried to sell Starr. The option would allow RTS to repurchase Starr at $500,000 less than any third party offer upon proper notice to RTS. The contractual right was for an unlimited time and its purpose or rationale was unknown. Appalachian received a $2.5 million offer for a twenty percent stake in Appalachian and notified RTS of the offer. RTS claimed that the notice was insufficient to allow RTS to evaluate the offer and whether to exercise its right. Appalachian contended that the repurchase option was unenforceable. The trial court determined that the clause was unenforceable and granted Appalachian injunctive relief.

Rule of Law

Issue

Holding and Reasoning (Mikell, J.)

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