The Second Appellate District affirmed a judgment. The court held that the evidence showed that a city properly terminated a contract for a waste disposal contract after it found that the consultant who advised the city to enter into the contract not only was the franchisee’s alter ego, but also bribed city council members to approve the franchise.
In 1999, the City of Compton solicited the advice of Michael Aloyan regarding the feasibility of the city internalizing its waste management services. Anticipating significant annual savings, in May 2000, the city entered into a management agreement with Aloyan’s company, American Utilities Services Limited Liability Company (AUS). Under the agreement, AUS would act as an independent contractor for the city’s “in-house” waste management. Aloyan identified vendors, and negotiated to acquire trucks, refuse containers, and real estate on behalf of the city.
