A high-stakes legal battle involving a $3 million transfer station performance bond and allegations of unfair trade practices has been settled, Connecticut court records reveal. The dispute, which pitted Country Holding Co. LLC against Covanta entities, was resolved just before jury selection was set to begin in Stamford Superior Court.

Dispute Origins and Settlement

The case began in August 2021 when Country Holding sued two Covanta subsidiaries over the sale of a waste-to-energy facility in Wallingford, Connecticut. At the center of the litigation was a $3 million performance bond that Covanta claimed Country Holding had defaulted on, allegedly leading to the termination of their agreement.

While Covanta secured summary judgment on all nine counts brought by Country Holding—including breach of contract, bad faith, and unfair trade practices—the case’s resolution eliminates Covanta’s counterclaims from trial.

In a motion to vacate the summary judgment order, Country Holding described the settlement as a "complete walkaway" with no admissions of liability from either side. Judge Sheila A. Ozalis granted the motion on Friday.

Companion Case and Broader Implications

The settlement also resolves a related lawsuit filed by Country Holding in September 2024, which accused Covanta of derailing plans for a trash incineration facility and sought over $450 million in damages. Covanta argued that the second case was duplicative of the first.

The resolution of both cases effectively ends all litigation between the parties, with no payments made by or to either side, according to Joseph P. Williams of Shipman & Goodwin LLP, counsel for the Covanta entities. Williams stated that his clients are "pleased to see this lengthy matter resolved."

Legal Representation

Country Holding Co. LLC was represented by Thomas J. Finn, Joseph Mazzarella, Jessica D. Bowman, and Peter J. Zarella of McCarter & English LLP.

The Covanta entities, Covanta Projects of Wallingford LLC and Covanta Energy LLC, were represented by Joseph P. Williams and Alison P. Baker of Shipman & Goodwin LLP.

Broader Impact

The settlement concludes a protracted legal battle that spanned years and involved significant allegations of contractual breaches and unfair trade practices. While the terms ensure no monetary exchange between the parties, rights against other entities remain reserved.