When Chula Vista signed a franchise agreement with its waste hauler in 2014, it could not have foreseen
The city, however, was limited in its options to pressure the company into resuming service because their agreement excuses Republic Services from performing its duties due to “uncontrollable circumstances,” which includes strikes or work stoppages.“Many city councils, ours included at the time, weren’t even aware that this provision was in this contract,” said state Sen. Steve Padilla, who previously served as a Chula Vista council member.
Force majeure clauses are standard and are added in agreements to remove liability for unforeseeable and unavoidable events that prevent a service provider from doing its job. These “act of God” events often cover natural disasters such as hurricanes and earthquakes or human events such as war. Republic Services, the nation’s second-largest waste hauler, declined to comment on the proposed legislation. The company also has a 10-year agreement with Carlsbad that officials approved in April 2021. It has a force majeure provision, but, unlike Chula Vista’s contract, labor unrest is not considered an excuse for nonperformance.
Why wasn’t that done in the initial contract?