Cleanaway (ASX:CWY) share price lifts on 'critical' court win

Cleanaway has won a crucial court case, sparking a rise in its share price.

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The Cleanaway Waste Management Ltd (ASX: CWY) share price finished the day slightly higher after the High Court dismissed a challenge to its Melbourne regional landfill works approval.

By market close, the Cleanaway share price was trading 0.36% higher at $2.78, adding to a 50% yearly return.

The company has been under fire by the Brimbank Council and Ravenhall residents over contaminated soil and garbage odour stemming from its waste plant.

It has been a long legal stoush for Cleanaway. Let's look at what the decision means for the waste management and recycling station company.

Cleanaway's court case

Australia's High Court today dismissed a legal challenge against approval for Cleanaway to extend its waste management station, Melbourne Regional Landfill, in Ravenhall, Victoria.

In June 2017, the Planning Minister for Victoria issued planning approval for the extension that would continue Cleanaway's licence to operate the facility until 2046. The company also required works approvals to expand the facility.

Cleanaway has now faced and won legal challenges in the High Court, Court of Appeal and Supreme Court. Today's decision was the last of these court cases.

The company also faced a higher-profile legal battle over its planned acquisition of French waste company Suez's Australian operations. That deal eventually collapsed.

Cleanaway management comments

Chief operating officer Brendan Gill welcomed the decision:

Cleanaway welcomes the High Court decision today, confirming that the Melbourne Regional Landfill can continue to provide an essential waste service for the community well into the future.

Securing the continued long‐term operations at the site supports our Footprint 2025 Strategy. The site is a waste management hub of state importance that provides critical waste management services, including for
residual waste streams that cannot be recycled.

Cleanaway share price snapshot

The Cleanaway share price has been subject to a balancing act from investors over the past 12 months. Despite rocky news reports, the company's record results have largely led market sentiment.

Cleanaway shares are up 19% this year-to-date and 12.9% this month. It has also beaten the industrials sector by 45% over the past year.

Motley Fool contributor Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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