Doctors sue Republic over medical waste monopoly

Tuesday, April 20, 1999 | 11:04 a.m.

Three Las Vegas doctors filed a class-action suit in U.S. District Court that could result in local competition in medical waste disposal.

One potential competitor is already operating in Las Vegas despite legal challenges to its right in light of the existing franchise agreement between Republic Silver State Disposal Inc. and local municipalities.

Two medical doctors, Zev Lagstein and Sundar Raj, and a dentist, Woodrow Wagner, filed suit last month against Republic Silver State Disposal alleging fraud, state statutory consumer fraud, breach of contract and violations of federal and state racketeering statutes.

The three doctors say Republic's fees for disposing of medical waste, which the company does through a subsidiary called Environmental Technologies Inc., have been in excess of rates set in municipal and county codes since 1990.

Through their attorney, Frank Cremens, the doctors are attempting to establish a class of up to 2,500 other medical facilities, including hospitals, clinics, convalescent centers, medical and dental offices and veterinary offices in the area.

The doctors are seeking compensatory damages on behalf of the class and punitive damages in the fraud and racketeering allegations. The racketeering allegation involves Republic Silver State's engaging in activities affecting interstate commerce.

Republic Silver State had no comment on the suit.

One competitor to Republic is already operating in the Las Vegas area.

Dorothy Beeler, a spokeswoman for Browning-Ferris Industries, said the company has contracts with St. Rose Dominican Hospital in Henderson and Sunrise Children's Hospital in Las Vegas.

Pete Jenkins, manager of environmental services at St. Rose, said the hospital began working with BFI in February.

Jenkins said price was the key factor in selecting BFI over Republic Silver State. He said he has heard that Republic Silver State has adjusted its rate structure since BFI began operations in Southern Nevada.

"We have no problems with Silver State," said Jenkins. "Cutting costs means saving dollars for the community. It was a business decision. We have to watch our expenses."

BFI, which last month announced plans to sell its assets to Allied Waste Industries Inc., Phoenix, in a $7.3 billion merger. BFI transports medical waste to dumps in California and Utah.