Newspaper article The Record (Bergen County, NJ)

Wayne Suing Defunct Recycler

Newspaper article The Record (Bergen County, NJ)

Wayne Suing Defunct Recycler

Article excerpt

WAYNE -- The township has filed a lawsuit against a recycling company that closed abruptly in September after months of allegedly failing to make payments to Wayne that total "at least $139,905."

The lawsuit, filed with the Superior Court in Paterson on Oct. 10, claims Green Sky Industries, the shuttered Clifton-based company that picked up the township's recycling for two years, violated the terms of its contract by failing to pay the township.

The contract, entered into on May 30, 2012, stipulated that the township's recycling -- including commingled recyclables, paper and cardboard -- would be taken by Green Sky at no cost to the township. The contract also required Green Sky to make rebate payments to the township according to the weight of the recyclable materials.

Those payments averaged $49,219 a month in 2013 until the payments stopped in August, according to township records. Green Sky made a payment of $45,027 in November 2013 and $20,501 total in July and August, the records show.

The lawsuit names Green Sky; Kevin Tinney, president of the company, and Recovered Paper Acquisition Co., as defendants. Recovered Paper Acquisition Co. is "one of the related corporate entities associated with Green Sky," said Matthew Giacobbe, the township attorney. "We're suing all possible entities who are related to Green Sky."

Green Sky representatives could not be reached for comment on Wednesday.

The lawsuit says the defendants failed to make rebate payments to the township for the months of September 2013, October 2013 and January 2014. A review of township records by The Record showed there was also no payment in December.

The township alleges the defendants committed fraud by "falsely, and with the intent to defraud," claiming the outstanding debt would be repaid if the parties could "come to an agreement on the contract negotiation," according to the complaint. …

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