RTS Landfill Inc. v. Appalachian Waste Systems LLC
Supreme Court of Georgia
598 S.E.2d 798 (2004)
Relevant factsFree
When RTS (plaintiff) sold its Starr Sanitation division to Appalachian (defendant), the purchase agreement gave RTS a preemptive right to repurchase Starr at $500,000 below any third-party offer, for an unlimited duration with no stated business purpose. After Appalachian received a $2.5 million third-party offer for a 20 percent stake and notified RTS, a dispute arose over the adequacy of that notice, and Appalachian argued the repurchase option itself was unenforceable; the trial court agreed and granted Appalachian injunctive relief.
IssueFree
Whether a right of preemption that sets a price lower than market value and is for an unlimited duration constitutes an unreasonable restraint on alienation.