Case Against Subsidiary of World's Largest Garbage Collection Company For Violation of the New Jersey Consumer Fraud Act

by Jay Chatarpaul on Jan. 08, 2015

Consumer Rights Consumer Protection Lawsuit & Dispute  Litigation 

Summary: Consumer Fraud Fraudulent Billing

Case Against Subsidiary of World's Largest Garbage Collection Company For Violation of the New Jersey Consumer Fraud Act

The plaintiff, a small restaurant, was a tenant in a shopping mall. Under a provision in the restaurant's lease, the mall itself was responsible for collecting and disposing of the restaurant's waste. However, over a period of 4 years, the restaurant's owner received invoices from an outside waste company-the defendant. The owner kept on paying the invoices believing that the waste was being removed by this company. However, after a few years, the restaurant's owner found out that the mall itself had been collecting and disposing of the waste, and it did not hire the outside company to do so.


The owner had no reason to question the invoices sent by the outside garbage company, as the invoices contained very detailed statements of charges, including the address and location for service, the size of the waste containers being picked up, and even the amount of fuel surcharge for the particular garbage truck used to haul the waste.

It turns out that the invoices were fraudulent. The outside garbage company never even set foot in the restaurant's property to haul their waste. The outside garbage company collected nearly $20,000 from the restaurant. The waste company, a subsidiary of a very large national and international waste collection company, claimed that it was a mistake.

On behalf
of the restaurant, we sued the waste collection company alleging violation of the New Jersey Consumer Fraud Act. After a few months of litigation, the case settled in mediation for an amount several times the total amount of the invoices plus reasonable attorneys' fees.

Legal Articles Additional Disclaimer

Lawyer.com is not a law firm and does not offer legal advice. Content posted on Lawyer.com is the sole responsibility of the person from whom such content originated and is not reviewed or commented on by Lawyer.com. The application of law to any set of facts is a highly specialized skill, practiced by lawyers and often dependent on jurisdiction. Content on the site of a legal nature may or may not be accurate for a particular state or jurisdiction and may largely depend on specific circumstances surrounding individual cases, which may or may not be consistent with your circumstances or may no longer be up-to-date to the extent that laws have changed since posting. Legal articles therefore are for review as general research and for use in helping to gauge a lawyer's expertise on a matter. If you are seeking specific legal advice, Lawyer.com recommends that you contact a lawyer to review your specific issues. See Lawyer.com's full Terms of Use for more information.

Now Chatting...