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't'g~g~cgA 54.ThefailureoftheHempstead,NewYorkplanttooperateproperlyconstitutesreasonablegroundsforandhasg'venrisetoinsecurityonthepartoftheCOUNTYthatthefacilityandequipmentpurchasedbytheCOUNTYfromtheDefendants,RRDC,RESOURCESRECOVERYandPARSONS,willsimilarlyfailtoperformitsintendedfunctioninsubstantialcompliancewiththeProjectAgreement.55.Noreover,theverbalandwrittenpronouncementsand.actionsoftheagents,officersand/ordulyauthorizedrepresentativesofthesaidDefendants,orallofthem,expressingtheirintentionnottoperformunderportionsoftheProjectAgreement,constitutefurtherreasonablegroundsfortheCOUNTY'sinsecuritywithrespecttotheperformanceofthesaidDefendantsundertheProjectAgreement.56.Specifically,theCOUNTYsubmitsthat:(a)ItisnowimpossiblefortheDefendant,RRDC,RESOURCESRECOVERYandPARSONS,todelivertoDADECOUNTYtheproduct.whichtheycontractedtodeliver;(b)ThepurposeforwhichtheCOUNTYenteredintotheProjectAgreementhasbeenfrustratedat.nofaultoftheCOUNTY;(c)TheCOUNTYvillnothavesolvedtheproblemofwastetreatmentbut,insteadvillseeitexacerbatedbythepassageofsomuchfruitlesstime;and(d.)TheCOUNTYwillhaveexhaustedallthefundsavailableandsetasideforprovisionofnecessarywastetreatment.57.Basedupontheforegoing,theCOUNTYhasdemandedadequateassuranceofperformancebythesa'dDefendants,RRDC,RESOURCESRECOVERYandPARSONS,oftheirdutiesandobligationsundertheProjectAgreement.Specifically,theCOUNTYhasrequested,eitheraletterofcreditoraperformancebondorashowingoffinancialinformationfromthesaidDefendantsasvouldreasonablyassuretheCOUNTYthatthesaidDefendantsnot,onlyintend,butareinafiscalposition,tocarryoutthetermsoftheirbargain,regardlessofprojectedoperatinglosses.58.TheDefendants,PARSONS,RESOURCESRECOVERYandRRDC,afterreceiptoftheCOUNTY'sdemandforadequateassuranceofperformance,havefailedandrefusedtoprovidewithinareasonable4timesuchassuranceofperformanceasisadequateunderthecircumstancesofthiscase.OFFICCOFCOUNTYAYTORNCYIOAOCCOUNTYFLORIOA(3051579-5I51I i4'i->o | 't'g~g~cgA 54.ThefailureoftheHempstead,NewYorkplanttooperateproperlyconstitutesreasonablegroundsforandhasg'venrisetoinsecurityonthepartoftheCOUNTYthatthefacilityandequipmentpurchasedbytheCOUNTYfromtheDefendants,RRDC,RESOURCESRECOVERYandPARSONS,willsimilarlyfailtoperformitsintendedfunctioninsubstantialcompliancewiththeProjectAgreement.55.Noreover,theverbalandwrittenpronouncementsand.actionsoftheagents,officersand/ordulyauthorizedrepresentativesofthesaidDefendants,orallofthem,expressingtheirintentionnottoperformunderportionsoftheProjectAgreement,constitutefurtherreasonablegroundsfortheCOUNTY'sinsecuritywithrespecttotheperformanceofthesaidDefendantsundertheProjectAgreement.56.Specifically,theCOUNTYsubmitsthat:(a)ItisnowimpossiblefortheDefendant,RRDC,RESOURCESRECOVERYandPARSONS,todelivertoDADECOUNTYtheproduct.whichtheycontractedtodeliver;(b)ThepurposeforwhichtheCOUNTYenteredintotheProjectAgreementhasbeenfrustratedat.nofaultoftheCOUNTY;(c)TheCOUNTYvillnothavesolvedtheproblemofwastetreatmentbut,insteadvillseeitexacerbatedbythepassageofsomuchfruitlesstime;and(d.)TheCOUNTYwillhaveexhaustedallthefundsavailableandsetasideforprovisionofnecessarywastetreatment.57.Basedupontheforegoing,theCOUNTYhasdemandedadequateassuranceofperformancebythesa'dDefendants,RRDC,RESOURCESRECOVERYandPARSONS,oftheirdutiesandobligationsundertheProjectAgreement.Specifically,theCOUNTYhasrequested,eitheraletterofcreditoraperformancebondorashowingoffinancialinformationfromthesaidDefendantsasvouldreasonablyassuretheCOUNTYthatthesaidDefendantsnot,onlyintend,butareinafiscalposition,tocarryoutthetermsoftheirbargain,regardlessofprojectedoperatinglosses.58.TheDefendants,PARSONS,RESOURCESRECOVERYandRRDC,afterreceiptoftheCOUNTY'sdemandforadequateassuranceofperformance,havefailedandrefusedtoprovidewithinareasonable4timesuchassuranceofperformanceasisadequateunderthecircumstancesofthiscase.OFFICCOFCOUNTYAYTORNCYIOAOCCOUNTYFLORIOA(3051579-5I51I i4'i->o | ||
~,P~eQ'I~~SEI.saidfailuretoprovideadequateassuranceofdueperfo~anceconstitutesarepudiationoftheProject'Agreement.60.ThisbreachconstitutesjustcausetodenypaymentfromescrowroanyoftheDefendants,andfurtherwarrantsrescissionoftheProjectAgreementatthistime.61.Basedupontheforegoing,thePlaintiffdemandsadeclarationofitsrights,duties,responsibilitiesandlegalrelationswiththeDefendantsinthepremises,including,arescissionoftheProjectAgreementandanysuchotherreliefasmaybeappropriate.COUNTIII62.ThePlaintiffreallegesandreavezsparagraphs1through61andincorporatesthemhereinbyreferenceasiffullysetforthverbatim.63.AtoraboutthetimeoftheexecutionoftheProjectAgreementandbeforeactualconstructiononthefacilitybegantheDefendants,PARSONS,RESOURCESRECOVERYand/orRRDC,knewthatoperatingcostsforthefacilitywouldinfactbesubstantiallyhigherthanthosereflected'intheProjectAgreementanduponwhichtheProject,Agzeementwasbased.64.Atthattime,thesaidDefendantskneworshouldhaveknown,asaresultoftheiroperatingexperienceattheHempstead,NewYorkplantandotherwise,thatduetoincreasedormiscalculatedopeatingcostsandotherwise,theycouldnotdeliverthatwhich.theyhadbargainedtodeliverandthatwhichtheCOUNTYhadbargainedtorecive.65.Infact,atthattime,,thesaidDefendantskneworshouldhaveknownthattheywouldbeunabletooperatetheplantaccordingtothetemsofthemanagementandassumptioncontracts66.Inspiteofsaidknowledge,thesaidDefendantsmisrepresentedandcontinuedtomisrepresenttotheCOUNTYtheoperatingcostsforthefacility.67.ThesaidDefendantsknewthattheCOUNTYreliedupontherepresentationsmadebythesaidDefendantsProjectAgreementandinundertakingalloftheProjectAgreement.Iinenteringintotheitsobligationsunder10OFFICEOFCOUNTYATTORNEY.OAOECOUNTYFI.ORIOAt305)5J95151 A0T 68.TheCOUNTYdidinfactrelyupontherepresentationsregardingoperatingcostsmadebythesaidDefendantsand.was,underthecircumstances,justifiedindoingso.69.Enmisrepresentingtheoperat'ngcosts,andinmisrepresentingtheDefendants'bilitytooperateandmanagethefacilityasagreed,thesaidDefendantsinducdtheCOUNTYtoenterintotheProjectAgreementwhichitwouldnothaveezecuted'adthefactsbeendisclosedtoit.70.ThecircumstancesofthetransactionimposedthedutyofdisclosureupontheDefendants.PRAYERFORRELZEFBasedupontheforegoing,theCOUNTYrespectfullyrequeststhe"followingrelief:1.Thatthecourttakejurisdictionofthepartiesandthecause.2.Thatthecourtdeclaretherights,duties,responsibilitiesandlegalrelationsofthepartiesinthepremises.3.ThatthecourtordertheDefendants,PARSONS,RESOURCESRECOVERYandRRDC,toputupaperformancebond,witharrangementstobeapprovedbythecourt,representingreasonableCOUNTYexpenseinobtainingalternatesolidwastetreatment.I4.ThatthecourtdeclarethatananticipatorybreachoftheProjectAgreementhasoccurred.S.Thatthecourtdeclarearescissionofthe.ProjectAgreement.6.Thatthecourtgrantanyandsuchotherand.furtherreliefasthecourtdeemsappropriate.ROBERTA.GENSBURGDadeCountyAttorney1626DadeCountyCourthouseNiami,Florida33130RobertA.Gz.nsburDadeCountyAttoeyandJackiN.SobelsitantCountyAttorney11OFFICEOFCOUNTYATTORNEYDADECOUNTYFLORIDA{DOS)S7e-5I5I | ~,P~eQ'I~~SEI.saidfailuretoprovideadequateassuranceofdueperfo~anceconstitutesarepudiationoftheProject'Agreement.60.ThisbreachconstitutesjustcausetodenypaymentfromescrowroanyoftheDefendants,andfurtherwarrantsrescissionoftheProjectAgreementatthistime.61.Basedupontheforegoing,thePlaintiffdemandsadeclarationofitsrights,duties,responsibilitiesandlegalrelationswiththeDefendantsinthepremises,including,arescissionoftheProjectAgreementandanysuchotherreliefasmaybeappropriate.COUNTIII62.ThePlaintiffreallegesandreavezsparagraphs1through61andincorporatesthemhereinbyreferenceasiffullysetforthverbatim.63.AtoraboutthetimeoftheexecutionoftheProjectAgreementandbeforeactualconstructiononthefacilitybegantheDefendants,PARSONS,RESOURCESRECOVERYand/orRRDC,knewthatoperatingcostsforthefacilitywouldinfactbesubstantiallyhigherthanthosereflected'intheProjectAgreementanduponwhichtheProject,Agzeementwasbased.64.Atthattime,thesaidDefendantskneworshouldhaveknown,asaresultoftheiroperatingexperienceattheHempstead,NewYorkplantandotherwise,thatduetoincreasedormiscalculatedopeatingcostsandotherwise,theycouldnotdeliverthatwhich.theyhadbargainedtodeliverandthatwhichtheCOUNTYhadbargainedtorecive.65.Infact,atthattime,,thesaidDefendantskneworshouldhaveknownthattheywouldbeunabletooperatetheplantaccordingtothetemsofthemanagementandassumptioncontracts66.Inspiteofsaidknowledge,thesaidDefendantsmisrepresentedandcontinuedtomisrepresenttotheCOUNTYtheoperatingcostsforthefacility.67.ThesaidDefendantsknewthattheCOUNTYreliedupontherepresentationsmadebythesaidDefendantsProjectAgreementandinundertakingalloftheProjectAgreement.Iinenteringintotheitsobligationsunder10OFFICEOFCOUNTYATTORNEY.OAOECOUNTYFI.ORIOAt305)5J95151 A0T 68.TheCOUNTYdidinfactrelyupontherepresentationsregardingoperatingcostsmadebythesaidDefendantsand.was,underthecircumstances,justifiedindoingso.69.Enmisrepresentingtheoperat'ngcosts,andinmisrepresentingtheDefendants'bilitytooperateandmanagethefacilityasagreed,thesaidDefendantsinducdtheCOUNTYtoenterintotheProjectAgreementwhichitwouldnothaveezecuted'adthefactsbeendisclosedtoit.70.ThecircumstancesofthetransactionimposedthedutyofdisclosureupontheDefendants.PRAYERFORRELZEFBasedupontheforegoing,theCOUNTYrespectfullyrequeststhe"followingrelief:1.Thatthecourttakejurisdictionofthepartiesandthecause.2.Thatthecourtdeclaretherights,duties,responsibilitiesandlegalrelationsofthepartiesinthepremises.3.ThatthecourtordertheDefendants,PARSONS,RESOURCESRECOVERYandRRDC,toputupaperformancebond,witharrangementstobeapprovedbythecourt,representingreasonableCOUNTYexpenseinobtainingalternatesolidwastetreatment.I4.ThatthecourtdeclarethatananticipatorybreachoftheProjectAgreementhasoccurred.S.Thatthecourtdeclarearescissionofthe.ProjectAgreement.6.Thatthecourtgrantanyandsuchotherand.furtherreliefasthecourtdeemsappropriate.ROBERTA.GENSBURGDadeCountyAttorney1626DadeCountyCourthouseNiami,Florida33130RobertA.Gz.nsburDadeCountyAttoeyandJackiN.SobelsitantCountyAttorney11OFFICEOFCOUNTYATTORNEYDADECOUNTYFLORIDA{DOS)S7e-5I5I 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Revision as of 11:50, 18 May 2018
ML17266A472 | |
Person / Time | |
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Site: | Saint Lucie |
Issue date: | 05/08/1981 |
From: | GINSBURG R A, SOBEL J M DADE COUNTY, FL |
To: | U.S. DISTRICT COURT, SOUTHERN DISTRICT OF FLORIDA |
Shared Package | |
ML17212A260 | List: |
References | |
NUDOCS 8107060152 | |
Download: ML17266A472 (20) | |
Text
~~ATTANTAINTHEUNITEDSTATESDISTRICTCOURTFORTHESOUTHEPZfDISTRICTOFFLOP-IDAtiETROPOLITANDADECOUNTY,FLORIDA,apoliticalsubdivisionoftheStateofFlorida,Plaintiff,CASENO.'svs.PARSONS6NHITTEI'IORE,INCORPORATED,aNewYorkCorporation;RESOURCESRECOVERY(DadeCounty),XNC.,aDelawareCorporation;RESOURCESRECOVERY(DadeCounty)CONSTRUCTIONCORP.,aDelawareCorporation,STATEBOARDOFADMINISTRATION(STATEOFFLORIDA),abodycorporatecreatedunderArticleXII,Section9,oftheConstitutionofthStateofFlorida;FIRSTNATIONALBA%(OFBOSTON,aNationalBankingAssociation;andBANOUEDEPARISETDESPAYS-BAS,aforeignbankingcorporation,Defendants.COMPLAINTFORDECLARATORYJUDGisiENTANDRESCISSION~+ag{Ims]7(>~r(~IsThePlaintiff,METROPOLITANDADECOUNTY,FLORIDA,apoliticalsubdivisionoftheStateofFlorida,foritsComplaint,alleges:JURXSDXCTION1.ThisCourthasjurisdictionpursuantto28U.S.C.A.1Sections2201,2202(1978)(DeclaratoryJudgments)and28U.S.C.A.Section1332(1976)(DiversityofCitizenship).2.Thematterincontroversy,exclusiveofinterestandcosts,exceedsonemilliondollars.3.Thisisanactionforadeclaratoryjudgmenttodeterminetherights,obligationsandremediesor".thepartiesunderdocumnts,whichareattachedheretoasExhibit1andareincorporatedhereinbythisreference(ThePROJECTAGREEMENT),executedbyandbetweenthePlaintiffandtheDefendantsduringtheperiodfromSeptember28,1976throughJanuary20,1979,inMiami,DadeCounty,Florida,forarescissionofsaidAgreementandforsuchotherreliefasmaybeappropriate.AlldocumentsreferredtohereinasbeingattachedtothisComplaintareattachedtotheoriginal'Complaintfiledinthe8107060182810508PDRADOCK05000389NPDROPP'(CgOFCOUNTYATTORNEYeOAOECOUNTYPLORfO*(305)579-5I5I
-~ECY,IIII Off-ceoftheClerkoftheUnitedStatesDistrictCourt.fortheSouthenDistrictofFlorida,300N.E.1stAvenue,Miami,Florida.ThevarevoluminousandareallinthepossessionofthenamedDefendants.Theyhave,therefore,notbeenattachedtothecopiesofthiscomplaintwhicharetobeservedonthenamedDefendants.THEPARTIES4.Plaintiff,METROPOLITANDADECOUNTY,FLORIDA,isapoliticalsubdivisionoftheStateofFlorida,actingbyandthroughitsBoardofCountyCommissionersandishereinafterreferredtoas"TheCOUNTY5.Defendant,PARSONS8WHITTEMORE,INCORPORATED,isaNewYorkcorporationhavingits'rincipalplaceofbusinessinaStateotherthanFloridaandishereinafterreferredtoas"PARSONS".6.Defendant,RESOURCESRECOVERY(DadeCounty),INC.,isaDelawarecorporationhavingitsprincipalplaceofbusinessinaStateotherthanFloridaand'isawhollyowned.subsidiaryofthe:Defendant,PARSONS.(HereinafterreferredtoasRESOURCESRECOVERY).7.Defendant,RESOURCESRECOVERY(DadeCounty)CONSTRUCTIONCORP.,isaDelawarecorporationhavingitsprincipalplaceofbusinessin,aStateotherthanFloridaandisawhollyownedsubsidiaryoftheDefendant,PARSONS.(HereinafterreferredtoasRRDC).8.TheDefendant,STATEBOARDOFADMINISTRATION,isabodycorporatecreatedunderArticleXII,Section9,oftheConstitutionoftheStateofFlorida.9.TheDefendant,FIRSTNATIONALBANKOFBOSTON,(hereinafter"FNB"),isanationalbankingassociationlocatedinaStateotherthanFloida,andissuedinitscapacityasagentforcertainbanksunderaloanagreementdefinedinthe'ProjectAgreementdocuments,Exhibit.Ahereto.10.Defendant.,BANQUEDEPARISETDESPAYS-BAS,isaforeignbankingcorporationnotcharteredby.orlocalizedintheStateofFloridaandishereinafterreferredtoas"PARI-BAS".FACTUALBACKGROUND11.Duringtheearly1970'sDADECOUNTY.reachedacrisiswithCrespecttotreatmentordisposalofsolidwaste.OFFICEOFCOUNTYhTTORNEY,OAOECOUNTYFI.ORIO*(305)5795151 s~~'
12.TheCOUNTY'sprocedureoflandfillingsolidwastedidnotprovideanadecruatesolutionsinceCOUNTYlandfillscouldnotmeetrecentlyenactedsolidwasteregulationsandstandards.Consequently,theCOUNTYenteredintoconsentagreementswiththeFloridaDepartmentofEnvironmentalRegulationsprovidingforcessationofwasteintakeattwooftheCOUNTY'slandfillareasandtransferoftheirfunctionstotheResourceRecoveryFacilityuponitscompletion.o'dwastecrisistheCOUNTYinsolvethesolidwasteproblem.14.By1976thefieldhadbeennarrowedtotwocompetingproposals,oneofwhichwasthatsubmittedbytheDefendant,PARSONS.15.AsaresultofandinrelianceupontherepreentationsmadebytheDefendant,PARSONS,initsbid.proposal,theCOUNTYenteredintonegotiationswithsaidDefendantwhichresultedintheProjectAgreement,Exhibit1.16.TheProjectAgreementprovidesforthedeign,construction,equipping,operationandmanagementofasinglefacilityinDadeCountywiththeabilitytoprocesssolidwaste,torecyclesomeofthematerialscontainedthereinandtoproducesteamforthegenerationofelectricalpower.Theprojectalsoincludesalandfillareafordispositionofunreclaimablewaste.17.TheCOUNTYcontractedtobuyasolidwastetreatmentsystemwhich,aftertheinitialstart-upandtestingperiod,would,processthreethousand(3,000)tonsofsolid.wasteperdayatacosttotheCountyofatippingfeeoftwenty-fivecents{$.25)pertonanddebtserviceofapproximatelytwelvedollarsand,fiftycents($12.50)perton.Thesecostsaresubjecttoacontractuallydefinedadjustmentoverthetwenty(20)yeartermoftheProjectAgreement.13.Inresponsetotheslxr1974,requestedbidsforproposalsforfacilitiesthatcouldeffectivelyTHEPROJECTAGREENENT18.Thepurchasecontract,definingthebasisuponwhichthe'efendant,RESOURCESRECOVERY,asseller,woulddesign,constructandselltotheCOUNTYthebuildingandassociatedequipment,wasoriginallyexecutedbetweentheCOUNTYandRESOURCESRECOVERYonSeptember28,.1976.(ItemAtoExhibit1)3OFFICEOFCOUNTYATTOANEY,DAOECOUNTYFLOAIOAIAaelwooa>ai 19.OnJanuary15,1978,RESOURCESRECOVERYassigneditsrightsandobligat'nsunderthesaidpurchasecontract>>toRRDC.TheDurchasecontractwasfirstamendedonMarch22,1978,againonMay5,l978,forathirdtimeonJuly5,1978,andfinallyonJanuary20,1979.(ItemsB-F)20.OnSeptember28,1976,contemporaneouslywiththeexecutionofthepurchasecontract,theCOUNTYandRESOURCESRECOVERYexecutedamanagementcontract.(ItemG)21.Thepurposeofthemanagementagreementwastodefinethebasisuponwhichthefacilityequipmentandlandfillareawouldbeoperatedtoprocesssolidwaste,torecyclematerialscontainedtherein,toproducesteamandtodisposeofunreclaimableanctunprocessedwaste.22.Themanagementcontractwasfirstamended.bytheCOUNTYandRESOURCESRECOVERYonMarch22,1978,amendeda.secondtimeon.11ay5,1978;athirdamendmentwasmadeonJanuary20,1979.{ItemsH-J)23.OnSeptember28,1976,theDefendant,PARSONS,foravaluableconsideration,executedanunconditionalguarantyoftheobligationsoftheseller,itswholly-ownedsubsidiary,underthepurchasecontractandanunconditionalguarantyoftheobligationsoftheoperator,alsoitswholly-ownedsubsidiary,underthemanagement>>contract.(ItemsK-L)24.TheDefendant,PARSONS,executedaRatificationandContinuingGuarantysecuringthepurchaseandmanagementcontractsonMay4,1978.(ItemM)25.ThepurposeoftheguarantieswastoinducetheCOUNTYtoenterintothpurchaseandmanagementcontractswiththeDefendants,RESOURCESRECOVERYandRRDC,andwasrelieduponbytheCOUNTYinitsexecutionofthesaidcontracts.26..OnOctober18,1977,tQeCOUNTYandFlozidaPowerandLightCompanyexecutedanagreement(theCGFcontract)controllingthetermsandconditionsoftheestablishmentofanelectricalgenerationfacilityattheplant.ThiscontractwasamendedonJuly5,1978.{ItemsN-0)OFFICEOFCOUNTYATTORNEY,OAOECOUNTYFI.ORIOA(305)5795I5I V'W'~~4 27.OnMarch22,1978,byexecutionoftheAssumptionAgreement,Defendnz,,RESOURCESRECOVERY,assumedalltheobligationsoftheCOUNTYundertheEGFcontractwithFloridaPowerandlightCompany.ArestatedandamendedAssumptionAgreementwasexecutedbytheCOUNTYandRESOURCESRECOVERYonMay5,1978.{ItemsP-Q)28.AlsoonMarch22,1978,Defendant,PARSONS,foravaluableconsideration,executedanunconditionalguarantyofRESOURCESRECOVERY'sobligationsundert;heAssumptionAgreement.ThepurposeofthisguarantywastoinducetheCOUNTYtoenterintotheEGFandAssumptionAgreementswithFPSLandDefendant,RESOURCESRECOVERY,andwasrelieduponbytheCOUNTYinitsexeuct:ionofsaidcontracts.(ItemR)29.OnMay4,1978,Defendant,PARSONS,executed.aRatificationandContinuingGuarantysecuringtheAssumptionAgreement.(ItemS)30.OnMay24,1978,anassignmentof'heAssumptionAgreementwasmadebyRESOURCESRECOVERYtoRRDC.(ItemT)31.OnJuly5,1978,afirst'.amendmenttotheRestatedandAmendedAgreementforAssumptionofRightsand.ObligationsUnderElectricalGenerationFacilityandSteamDeliveryAgxeementwasexecutedbytheCOUNTYandDefendant,RRDC.(ItemU)32.OnJuly10,1978,theCOUNTY,aspartyofthefirst;part,Defendant;s,RRDC,FNBandPARI-BAS,partiesofthesecondpart'.,andDefendant,STATEBOARDOFADMINISTRATION,asescrowagent,executedanEscrowAgreementsettingforththetermsand.conditionsforthholdinganddispersaloftheescrowfundspertainingtotheProjectAgreement.ThisEscrowAgreementwasamendedbythepartiesonJuly20,1979.{ItemsV-W)33.PursuanttothisProjectAgreement,onehundredtwenty-eightmilliondollars($128,000,000.00)representingthepurchasepriceofthefacilityandequipment,wasraisedbytheCOUNTYandplacedintoanescrowaccountaccordingtothetermsoftheEscrowAgreement.ITheCOUNTYisatalltimespreparedtopaythismoneytoHRDC,FNBandPARI-BASsolongasithasreceivedadequateassuranceofperformancebysaidDefendantsofthetermsandconditionsofthemanagementandassumptioncontracts.OFFICEOFCOUNTYATTORNEY.DADECOUNTYFI.ORIDA{305lSVg-SINAI r~l ci~.i9P34.Uponinformationandbelief,thebuildinghasbeenunderconstructionforsom'etimenowandwillbephysicallycompletewithintwo(2)weeksfromthedateoffilingofthiscomplaint.35.PursuanttotheProjectAgreement,uponthephysicalcomplet'onofthebuilding,theDefendant,STATEBOARDOFADMINISTRATION,asescrowagent,willbecomecontractuallyobligatedtopaytotheDefendants,RRDC,FNBandPARI-BAS,seventypercent(70%)ofthenetpurchaseprice,solongas:"nodefaultbyRESOURCESRECOVERYorRRDCexistsundertheEscrowAgreement,thePurchaseContract,ManagementContract,ortheAssumptionAgreement,or(2)ifadefaultexistsunderthisAgreement,thePurchaseContract,theManagementContract,ortheAssumptionAgreementand(a)saiddeaultcanbecuredwithinthirty(30)daysthatRRDCwillcuresaid,defaultwithinthirty(30)days,or(b)ifsaiddefaultcannotbecuredwithinthirty(30)days,thatRRDChascommencedtocuresaiddefaultandisproceedingdiligentlytocuresaid,default;36.Ifsuchpaymentismade,theCOUNTYwillhavenoadequateremedyatlaw.COUNTI37.ThePlaintiffreallegesandreaversparagraphs1through36andincorporatesthemhereinbyreferenceasiffullysetforthverbatim.38.SincetheexecutionoftheProjectAgreementbetweenthePlaintiffandtheDefendants,certainagents,officersand/ordulyauthorizedrepresentativesofoneoralloftheDefendants,,RBDC,RESOURCESRECOVERYandPARSONS,indicatedbywords,writingsandactionsthatthesaidDefendantscannotanddonoiintend,toperformtheirobligat"'onsundertheprovisionsoftheassumptionandoperationandmanagementportionsoftheProjectAgreementbecausetodosowouldbankruptthem.39.Inaddition,certainagents,officersand/ordulyauthorizedrepresentativesoftheDefendants,RRDC,RESOURCESRECOVERYand/orPARSONS,haveindicatedbywords,writingsoractionsthattheywouldnotoperatetheelectricalgenerationfacilityinaccordancewiththetermsoftheEGFandAssumptionagreements.I6OFFICEOFCOUNTYATTORNEY.OAOECOUNTYFLORIOA(305)579-515I
'4~prCI
~~40.Theseverbalpronouncements,writtenpronouncementsandactionsoftheagents,officersand/ordulyauthorizedrepresentativesoftheDefendants,orallofthem,constituteananticipatorybreachofthemanagementandassumptionportionsoftheProjectAgrement.41.Thepartiesagreedthateachportionoftheproject(i.e.,designandconstruction,management,electricalgeneration)wouldbeconsideredrelatedtoanddependentuponeachandeveryotherportionoftheproject,andthepartiesspecificallybargainedforafacilityandeauipmentwhichtheDefendants,RESOURCESRECOVERYandPARSONS,wouldoperatethroughoutthetwenty(20)yearlifeoftheProjectAgreement.42.Thisagreementwasincorporated.intotheEscrowAgreement,whichstatesthatabrechofanyportionoftheProjectAgreementwouldbeconsideredabreachofall,sufficienttorelievetheCOUNTYfromtheobligationtoallowthepaymentoverofanyofthefundspresentlyheldinescrow.43.ThepartiesfurtheragreedthatriskoflossisontheDefendants,RRDC,RESOURCESRECOVERYandPARSONS,untilacceptancebytheCOUNTYofthefacility.44.Shouldthemoneywnichisheld.inescrowbepaidover.totheDefendantswithoutaworkableoperatingagreement,it.wouldpreventtheCOUNTYfromimplementingalternativewastetreatmentstrategieswhicharenowabsolutelynecessaryforthepublichealth,safetyandwelfareoftheresidentsofDADECOUNTY.45..AnanticipatorybreachoftheProjectAgreementhasoccurredandthisbreachconstitutesjustcausetodenypaymentfromescrowtoanyoftheDefendantsandwarrantsrescissionoftheProjectAgreement.46.WHERErORE,upontheforegoingfacts,acontrovesyhasarisenbetweenthePlaintiffandtheDefendants,relatingtotheir'egalrights,duties,liabilities,responsibilitiesand.legalWrelationsundersaidcontract,Exhibit1hereto,andthereforethePlaintiffdesiresadeclarationofitsrights,duties,responsibilitiesandlegalrelationswiththeDefendantsinthepremises,including,OFFICEOFCOUNTYATTORNEY,OAOCCOUNTYFI.ORIOA(305)5795I5I i=theCourtdeclaresthattherehasbeenanantic'patorybreachoftheoperatingagreement,rescissionofthecontractandanysuchotherreliefasmaybeappropriate.COUNTI.I47.ThePlaintiffreallegesandreaversparagraphs1through46andincorporatesthemhereinbyreferenceasiffullysetforthverbatim.48.TheProjectAgreementisacontractforsaleofspecializedequipmentsuchasboilers,incinerators,shreddersandturbo-generators,forthescientificprocessingandtreatmentofsolid.wasteand.theresultinggenerationofelectricalpower.49.TheDefendants',RESOURCESRECOVERYandPARSO¹',anticipatedcostsofoperatingsuchequipmentaresomuchhighertodaythantheywererepresentedbysaidDefendantswhenthepartiesreachedtheirbargainthat,accordingtothePresidentofthesaidDefendants,theywouldlosemorethanseventymilliondollars($70,000,000.00)inthefirstfive(5)yearsofoperationandmorethanfourhundredmilliondollars($400,000,000.00)overthefulltwenty(20)yeartermoftheProjectAgreement.50.Further,saidDefendantssustainedalargelossduetoasubstantialconstructioncostoverrunincurredbythematasimilarRESOURCERECOVERYPlantlocatedinHempstead,NewYork,andmorefullydescribedbelowatparagraph52.51.TheCOUNTYisthereforeinsecurewithrespecttotheabilityorthewillingnessofthesaidDefendantstosustain.suchoperatinglossesasthosedescribedbytheirPresidentandtoperformastheyhaveagreedintheProjectAgreement.52.Additionally,theDefendants,PARSONS,RESOURCESRECOVERYandRRDC,priortoenteringintotheProjectAgreementwiththeCOUNTY,arrangedforandcommencedtheequippingofasimilarresourcerecoveryplantinHempstead,NewYork,whichwastobea.prototypeandmodelfortheDadeCountyplant.53.TheprojectinHempstead,NewYork,althoughphysicallycomplete,hasbeenshutdownsinceMarch1980.Evenwheninoperation,thatplantoperatedwayabovetherepiesentedcost.OFFICEOFCOUNTYATTORNEY,DADECOUNTYFLORIDA(505)5795151
't'g~g~cgA 54.ThefailureoftheHempstead,NewYorkplanttooperateproperlyconstitutesreasonablegroundsforandhasg'venrisetoinsecurityonthepartoftheCOUNTYthatthefacilityandequipmentpurchasedbytheCOUNTYfromtheDefendants,RRDC,RESOURCESRECOVERYandPARSONS,willsimilarlyfailtoperformitsintendedfunctioninsubstantialcompliancewiththeProjectAgreement.55.Noreover,theverbalandwrittenpronouncementsand.actionsoftheagents,officersand/ordulyauthorizedrepresentativesofthesaidDefendants,orallofthem,expressingtheirintentionnottoperformunderportionsoftheProjectAgreement,constitutefurtherreasonablegroundsfortheCOUNTY'sinsecuritywithrespecttotheperformanceofthesaidDefendantsundertheProjectAgreement.56.Specifically,theCOUNTYsubmitsthat:(a)ItisnowimpossiblefortheDefendant,RRDC,RESOURCESRECOVERYandPARSONS,todelivertoDADECOUNTYtheproduct.whichtheycontractedtodeliver;(b)ThepurposeforwhichtheCOUNTYenteredintotheProjectAgreementhasbeenfrustratedat.nofaultoftheCOUNTY;(c)TheCOUNTYvillnothavesolvedtheproblemofwastetreatmentbut,insteadvillseeitexacerbatedbythepassageofsomuchfruitlesstime;and(d.)TheCOUNTYwillhaveexhaustedallthefundsavailableandsetasideforprovisionofnecessarywastetreatment.57.Basedupontheforegoing,theCOUNTYhasdemandedadequateassuranceofperformancebythesa'dDefendants,RRDC,RESOURCESRECOVERYandPARSONS,oftheirdutiesandobligationsundertheProjectAgreement.Specifically,theCOUNTYhasrequested,eitheraletterofcreditoraperformancebondorashowingoffinancialinformationfromthesaidDefendantsasvouldreasonablyassuretheCOUNTYthatthesaidDefendantsnot,onlyintend,butareinafiscalposition,tocarryoutthetermsoftheirbargain,regardlessofprojectedoperatinglosses.58.TheDefendants,PARSONS,RESOURCESRECOVERYandRRDC,afterreceiptoftheCOUNTY'sdemandforadequateassuranceofperformance,havefailedandrefusedtoprovidewithinareasonable4timesuchassuranceofperformanceasisadequateunderthecircumstancesofthiscase.OFFICCOFCOUNTYAYTORNCYIOAOCCOUNTYFLORIOA(3051579-5I51I i4'i->o
~,P~eQ'I~~SEI.saidfailuretoprovideadequateassuranceofdueperfo~anceconstitutesarepudiationoftheProject'Agreement.60.ThisbreachconstitutesjustcausetodenypaymentfromescrowroanyoftheDefendants,andfurtherwarrantsrescissionoftheProjectAgreementatthistime.61.Basedupontheforegoing,thePlaintiffdemandsadeclarationofitsrights,duties,responsibilitiesandlegalrelationswiththeDefendantsinthepremises,including,arescissionoftheProjectAgreementandanysuchotherreliefasmaybeappropriate.COUNTIII62.ThePlaintiffreallegesandreavezsparagraphs1through61andincorporatesthemhereinbyreferenceasiffullysetforthverbatim.63.AtoraboutthetimeoftheexecutionoftheProjectAgreementandbeforeactualconstructiononthefacilitybegantheDefendants,PARSONS,RESOURCESRECOVERYand/orRRDC,knewthatoperatingcostsforthefacilitywouldinfactbesubstantiallyhigherthanthosereflected'intheProjectAgreementanduponwhichtheProject,Agzeementwasbased.64.Atthattime,thesaidDefendantskneworshouldhaveknown,asaresultoftheiroperatingexperienceattheHempstead,NewYorkplantandotherwise,thatduetoincreasedormiscalculatedopeatingcostsandotherwise,theycouldnotdeliverthatwhich.theyhadbargainedtodeliverandthatwhichtheCOUNTYhadbargainedtorecive.65.Infact,atthattime,,thesaidDefendantskneworshouldhaveknownthattheywouldbeunabletooperatetheplantaccordingtothetemsofthemanagementandassumptioncontracts66.Inspiteofsaidknowledge,thesaidDefendantsmisrepresentedandcontinuedtomisrepresenttotheCOUNTYtheoperatingcostsforthefacility.67.ThesaidDefendantsknewthattheCOUNTYreliedupontherepresentationsmadebythesaidDefendantsProjectAgreementandinundertakingalloftheProjectAgreement.Iinenteringintotheitsobligationsunder10OFFICEOFCOUNTYATTORNEY.OAOECOUNTYFI.ORIOAt305)5J95151 A0T 68.TheCOUNTYdidinfactrelyupontherepresentationsregardingoperatingcostsmadebythesaidDefendantsand.was,underthecircumstances,justifiedindoingso.69.Enmisrepresentingtheoperat'ngcosts,andinmisrepresentingtheDefendants'bilitytooperateandmanagethefacilityasagreed,thesaidDefendantsinducdtheCOUNTYtoenterintotheProjectAgreementwhichitwouldnothaveezecuted'adthefactsbeendisclosedtoit.70.ThecircumstancesofthetransactionimposedthedutyofdisclosureupontheDefendants.PRAYERFORRELZEFBasedupontheforegoing,theCOUNTYrespectfullyrequeststhe"followingrelief:1.Thatthecourttakejurisdictionofthepartiesandthecause.2.Thatthecourtdeclaretherights,duties,responsibilitiesandlegalrelationsofthepartiesinthepremises.3.ThatthecourtordertheDefendants,PARSONS,RESOURCESRECOVERYandRRDC,toputupaperformancebond,witharrangementstobeapprovedbythecourt,representingreasonableCOUNTYexpenseinobtainingalternatesolidwastetreatment.I4.ThatthecourtdeclarethatananticipatorybreachoftheProjectAgreementhasoccurred.S.Thatthecourtdeclarearescissionofthe.ProjectAgreement.6.Thatthecourtgrantanyandsuchotherand.furtherreliefasthecourtdeemsappropriate.ROBERTA.GENSBURGDadeCountyAttorney1626DadeCountyCourthouseNiami,Florida33130RobertA.Gz.nsburDadeCountyAttoeyandJackiN.SobelsitantCountyAttorney11OFFICEOFCOUNTYATTORNEYDADECOUNTYFLORIDA{DOS)S7e-5I5I
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