Topeka landlord sues trash company, alleges defamation

TOPEKA (KSNT) - Eucalyptus Real Estate, LLC, which manages dozens of Topeka apartment complexes owned by real estate developer Lew McGinnis, is suing another company it claims is responsible for the trash mess at its properties.

An attorney for Eucalyptus filed a lawsuit on Dec. 31, 2024 in federal court against LRS South, LLC, an Illinois-based waste removal and recycling provider. The suit alleges LRS breached its contract with Eucalyptus and then defamed the real estate company by lying about which of them was at fault.

Eucalyptus is seeking financial damages after it claims LRS abruptly stopped service for the approximately 40 Topeka residential housing communities for which it was under contract to provide trash and waste removal services, according to the lawsuit.

The stoppage resulted in weeks of trash accumulation at several apartment properties. The City of Topeka first issued citations to Eucalyptus for violating city waste ordinances. Weeks later and after multiple ignored citations, the City of Topeka's Property Maintenance Unit and removed the piles of trash from the affected properties. A City of Topeka spokesman said Eucalyptus properties that still lacked dumpsters had been cited and criminal charges for the violations would be processed.

The lawsuit states the problems started in 2021 when Eucalyptus entered into a contract with LRS for waste removal services. That's when LRS purchased Orion Waste Solution Territory and acquired Topeka-based Ditch & Associates, which had previously contracted with Eucalyptus for waste removal services.

Eucalyptus accuses LRS of poor accounting practices and record-keeping. Eucalyptus claims it remained up-to-date on payments through November 2024. But during the week of Thanksgiving, the lawsuit alleges LRS stopped picking up trash at all Eucalyptus-managed properties in Topeka.

Eucalyptus said it immediately contacted LRS to alert them of the problem. Then, despite multiple demands, it said LRS declined to resume service. The lawsuit alleges LRS falsely stated it had stopped trash service due to non-payment of service invoices.

The lawsuit claims Eucalyptus has suffered and continues to suffer substantial monetary damages due to what it calls LRS's intentional breach of contract. It alleges LRS acted in retaliation because Eucalyptus was considering taking its business to a different trash service.

An attorney for Eucalyptus has filed a request with the United States District Court for the District of Kansas demanding the case goes to trial and for that trial to take place in Topeka. The lawsuit seeks unspecified damages exceeding $75,000. A trial date has not been set.

27 News has reached out to both Eucalyptus and LRS for comment regarding this lawsuit and ongoing delays in waste removal services. Neither had responded by the time of this article's publication.

The City of Topeka updated its retaliatory action ordinance in July 2024 to help protect the rights of tenants. Tenants have a right to a clean, safe and sanitary environment and should be able to live without fear of retaliation from property owners. You can learn more about the retaliatory action ordinance with the City of Topeka by clicking here.

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