PIKEVILLE, Ky. (WMDJ) — Two companies behind a proposed Pike County landfill have filed a federal lawsuit against Pike County and the Pike County Fiscal Court, alleging county officials improperly backed out of an agreement for the project.
USA Waste and Recycling Inc. and American Land Reserve LLC filed the complaint in U.S. District Court for the Eastern District of Kentucky.
According to the lawsuit, the Fiscal Court unanimously awarded USA Waste a franchise in October 2025 to construct and operate a privately owned landfill in Pike County. A Host Community Agreement governing the project was later approved and signed.
The complaint says the Fiscal Court then voted 3-1 on Feb. 24 and again on March 3 to rescind the agreement.
The companies allege they had already spent more than $2.1 million pursuing the project, including $1 million for options to purchase property and nearly $1.1 million in consulting and engineering expenses.
The lawsuit claims the county's actions deprived the companies of their rights under the landfill franchise and alleges the franchise had a fair market value of at least $20 million at the time of the February vote.
The six-count complaint includes claims involving property rights, due process, breach of contract and the duty of good faith and fair dealing.
The companies are seeking damages, interest, attorney fees, possible injunctive relief and a jury trial.
The allegations have not yet been proven in court.
