Property Owner Lawsuit · City of Los Angeles · Case No. LASC BC677423

Did recycLA Force You
To Pay
an Illegal Tax?
¿Le obligó recycLA a pagar
un impuesto ilegal?

Beginning in 2017, the City of Los Angeles imposed dramatically increased fees on commercial property owners and apartment owners through the recycLA franchise program — without the voter approval required by the California Constitution.

ATTORNEY ADVERTISEMENT. This communication is for informational purposes only and does not constitute legal advice. Contacting us does not create an attorney-client relationship. Carolin K. Shining, Esq. is licensed to practice law in the State of California.
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Eligibility

Do You Qualify to Join?

You may be a potential participant in Apartment Owners Association et al. v. City of Los Angeles (Case No. LASC BC677423) if you own or owned commercial or multifamily property in the City of Los Angeles and were subjected to the recycLA program's inflated franchise fees.

The lawsuit alleges that the City violated California Constitution Articles XIII C and D — commonly known as Proposition 218 — by imposing these fee increases without the required voter approval. Commercial property owners and apartment building owners may be entitled to recover unlawfully collected fees, interest, and additional remedies available under California law.

What You May Recover

Qualified plaintiffs may seek reimbursement of unlawfully collected recycLA fees, interest on amounts improperly withheld, and other remedies available under California law. These charges and fees are being continuously billed and paid by property owners and even increasing over time.

  • You own or owned commercial property in the City of Los Angeles
  • You own or owned an apartment building (multifamily dwelling) in Los Angeles
  • You were subject to recycLA program fees charged on or after 2017
  • You paid increased recycling or waste hauling fees under the recycLA franchise system
  • You are a commercial tenant who paid increased waste fees passed through by a landlord
  • You represent a homeowners association (HOA) billed under the recycLA program
Background

The History of recycLA (Zero Waste)

What the City publicly called an environmental initiative concealed a dramatic and unlawful revenue increase imposed on over 80,000 commercial and multifamily property owners. Here is the documented record.

2007 – 2013
The Zero Waste Plan Is Conceived
Under its RENEW LA Plan, the City of Los Angeles publicly committed to diverting 70% of solid waste by 2013 and 90% by 2025 — environmental goals used to justify sweeping changes to the commercial waste collection system. The program was known under numerous names, including the "Solid Waste Integrated Resources Plan (SWIRP)" and the "Commercial and Multi-Family Franchise Initiative Implementation Plan."
April 15, 2014
Ordinance No. 182,986 Adopted
The Mayor and City Council adopted the Citywide Exclusive Franchise System for Municipal Solid Waste Collection and Handling. This ordinance created the legal framework for granting exclusive territorial monopolies to a handful of private waste haulers — eliminating competitive choice for over 64,000 commercial accounts citywide. The franchise fee was set at 12% of gross receipts, up from the prior 10%, generating tens of millions in additional City revenue. No voter approval was sought or obtained.
2014 – 2016
Secret Contract Negotiations
While publicly promising "fair," "reasonable," and "stable" rates, the City secretly negotiated $3.5 billion in exclusive franchise contracts with seven haulers. Rate details — including dramatically increased charges, new fees for previously free services, and pre-approved annual rate increases of up to 3% — were buried in 250-page contracts and their appendices. The City made no public disclosure of these specific increases.
September 26, 2016
Seven Monopoly Franchisees Announced
The City awarded exclusive geographic franchise zones to Athens Services, Republic Services (formerly Consolidated Disposal), Universal Waste Systems (UWS), Waste Management, CalMet Services, NASA Services, and Ware Disposal. Over 100 smaller, family-owned haulers — some in business for decades — were shut out and offered no fair compensation for their customer lists, equipment, or goodwill.
December 14, 2016
Ordinance No. 184,865 Adopted
A second ordinance amended the franchise system, adding subcontractor reporting requirements. Effective January 25, 2017, this ordinance locked in the exclusive franchise structure that would govern waste collection for the next decade and beyond, with automatic rate escalators built into each franchise agreement.
July 1, 2017
recycLA Launches — Fees Double and Triple
Full implementation of the recycLA program commenced. Commercial property owners and apartment owners received new bills reflecting fees that, in many cases, had doubled or tripled compared to pre-program rates. New charges appeared for services previously provided free of charge — including "pull-out fees," lock and unlock services, and fees for properties located more than 100 feet from a sidewalk. Owners who did not switch to their assigned franchisee were threatened with loss of service.
September 27, 2017
Lawsuit Filed — AOA v. City of Los Angeles
Shining Law Inc., on behalf of the Apartment Owners Association of California, Inc. and individual property owners including Daniel C. Faller and Mark Wilson, filed the complaint in Los Angeles Superior Court (Case No. BC677423). The complaint alleged five causes of action: violation of Proposition 218 (injunctive and declaratory relief), monetary damages for Proposition 218 violations, violations of the Unruh Act as to elderly and disabled property owners, intentional interference with contractual relations, and fraud and deceit.
2017 – Present
Litigation Continues
The case has proceeded through extensive motion practice, class certification proceedings, and interlocutory litigation. The City has argued, in opposition, that plaintiffs were required to pay their fees "under protest" pursuant to Health & Safety Code § 5472 before bringing suit — a procedural defense that the plaintiffs contest. The lawsuit remains active, and additional participants are being sought. Deadlines to join are approaching. The charges and fees continue to harm property owners across the City of Los Angeles, and it is your time to stand up and seek reimbursement.
Legal Foundation

Proposition 218 & California's Taxpayer Protections

13

Proposition 13 (1978)

California voters approved limits on ad valorem property taxes and required legislative supermajorities for state tax increases. This landmark measure added Article XIII A to the California Constitution and launched the modern era of taxpayer protection in California.

62

Proposition 62 (1986)

Voters codified Government Code § 53720 et seq., requiring voter approval for new local general taxes or tax increases. The California Supreme Court upheld Proposition 62's constitutionality in Santa Clara County Local Transportation Authority v. Guardino (1995) 11 Cal.4th 220.

218

Proposition 218 (1996)

Authored and principally sponsored by the Howard Jarvis Taxpayers Association, Proposition 218 added Articles XIII C and XIII D to the California Constitution, placing broad voter and fee-payer approval requirements on all local taxes, assessments, and property-related fees and charges.

The Legislative History of Proposition 218

Proposition 218 — the "Right to Vote on Taxes Act" — was approved by California voters in November 1996 as a constitutional amendment. It was a direct response to decades of local government abuse of taxing and fee-setting authority. Article XIII C prohibits local governments from imposing, extending, or increasing any general tax without majority voter approval, and any special tax without a two-thirds vote. Article XIII D governs property-related fees and charges, requiring that revenues not exceed the cost of the service, not be applied to any purpose other than that for which the fee is imposed, and that fee amounts not exceed the proportional cost attributable to the parcel.

As a constitutional provision, Proposition 218 supersedes and takes priority over any contradictory provisions in the City of Los Angeles Charter or ordinances. The City's dramatic fee increases under the recycLA program — imposed without any voter approval, public notice, or election — are alleged to be a direct and ongoing violation of Proposition 218's core protections.

Citizen access to meaningful legal remedies is essential for holding local governments accountable. Plaintiffs in AOA v. City of Los Angeles seek to enforce those constitutional protections on behalf of the tens of thousands of property owners who were unlawfully taxed.

Litigation

About the Case

The complaint was filed on September 27, 2017 in the Los Angeles County Superior Court, Central District, Stanley Mosk Courthouse. The case is captioned Apartment Owners Association of California, Inc., et al. v. City of Los Angeles, et al.

The lawsuit alleges that the City's franchise fee increases constitute an illegal tax imposed in violation of Proposition 218 because it was never submitted to or approved by the voters. Plaintiffs allege that these revenues flow into the City's General Fund and are therefore general taxes requiring majority voter approval, or, in the alternative, property-related fees subject to Article XIII D's notice and protest procedures.

The City of Los Angeles, through its counsel, has advanced various procedural defenses, including arguments under the Health & Safety Code's "pay-under-protest" provisions (§ 5472) and challenges to class certification. The litigation is ongoing. Counsel continues to actively seek and add participants. If you have not contacted Shining Law Inc., the time is now.

Case Name AOA et al. v. City of Los Angeles et al.
Case Number LASC BC677423
Court Superior Court of California, County of Los Angeles — Central District
Date Filed September 27, 2017
Lead Plaintiffs AOA of California, Inc.; Daniel C. Faller; Mark Wilson
Defendant City of Los Angeles / Dept. of Public Works / LASAN
Type Unlimited Civil
Co-Counsel Arias Sanguinetti Wang, LLP
Status Accepting Individual Plaintiffs
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The Firm

About Shining Law Inc.

Shining Law Inc. is a California-licensed litigation boutique led by Carolin K. Shining, Esq. (State Bar No. 201140). It concentrates its practice on commercial litigation, trust disputes and intellectual property matters, with particular depth in constitutional challenges to local government taxation and fee-setting authority.

Attorney Shining has been counsel of record in Apartment Owners Association et al. v. City of Los Angeles since its inception in 2017. The firm's direct engagement with affected property owners, combined with its command of California's complex constitutional tax law under Propositions 13, 62, and 218, positions it uniquely to pursue the rights of the over 80,000 property owners impacted by the recycLA program.

Representation in the AOA v. COLA matter is pursued in conjunction with co-counsel Arias Sanguinetti Wang, LLP, recognized leaders in California class action litigation.

No Out-of-Pocket Costs. This matter is being handled on a contingency basis for participants. You pay nothing unless and until there is a recovery. Lead plaintiffs may be eligible for an additional service award upon successful resolution.
80K+
Property Owners Potentially Affected
$3.5B
Value of City Franchise Contracts
2017
Year Lawsuit Was Filed
5
Causes of Action Pleaded
Attorney Carolin K. Shining, Esq. (SBN 201140)
Phone 310-872-8438
Address 475 Washington Boulevard
Marina del Rey, CA 90292
Free Consultation

Contact Shining Law Inc.

Time Is Limited. Contact Us Now.

Deadlines to join are approaching. If you are a commercial property owner, apartment owner, commercial tenant, or HOA in Los Angeles that paid recycLA fees, contact us immediately for a free, confidential consultation. There is no cost to you to explore your options.

310-872-8438Office
[email protected]RecycLA Case Inquiries
475 Washington Boulevard, Marina del Rey, CA 90292
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