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Solid Waste Management Auth. of Crisp County Ga. v. Transwaste Servs. Inc.

The defendant was not entitled to a set-off against the principal due on a promissory note that defendant signed after waiving its rights to contest its liability under the note.

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Transwaste Services, Inc. Transwaste, filed this complaint against the Solid Waste Management Authority of Crisp County the Authority seeking a recovery for services rendered by Transwaste to the Authority under a contract styled Waste Collection and Transportation Agreement WCTA. The Authority filed a counterclaim seeking to set off its liability to Transwaste on the claims asserted in the complaint against Transwaste’s liability to the Authority for breach of certain guarantees made by Transwaste under another contract known as the Waste Service Agreement WSA. The question is whether the Authority has waived its right of setoff. The trial court answered this question in the affirmative, as do we.

The Authority operates a solid waste processing facility. Under contracts with various governmental units, the Authority agreed to collect and dispose of solid waste produced throughout the state. Under the WCTA, the Authority subcontracted to Transwaste various duties owed by the Authority under its contracts with the governmental units. Under the WSA, Transwaste guaranteed that the total tonnage of waste delivered to the Authority by Transwaste and the governmental units would be sufficient to operate the facility on a break-even basis.

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