Judge lifts injunction against Hawkeye Waste, allowing operations to continue in Johnson County

IOWA CITY — A waste company ordered by a judge to stop operations in Johnson County earlier this month because it didn’t have workers’ compensation insurance has now provided proof of insurance and can continue operating in the county.

Sixth Judicial District Judge Kevin McKeever granted a temporary injunction to the county last week, ordering Hawkeye Waste Systems Inc. to stop operating or employing anyone in Johnson County because it didn’t have workers’ compensation insurance.

Johnson County renewed its motion for an injunction Oct. 7 because Johnson County Attorney Rachel Zimmermann Smith found out the company’s insurance lapsed in September.

The county attorney’s office had reached an agreement with the company before an injunction hearing in August because owner James Watts provided proof of insurance. The insurance was purchased July 11 for one year. If the business maintained insurance going forward, Zimmermann Smith said she wouldn’t ask the court for the temporary injunction.

However, the county renewed the motion when the online database for the National Council on Compensation Insurance, which verifies an employer’s workers’ compensation insurance coverage, showed Hawkeye Waste had a lapse in coverage starting Sept. 10, and remained uninsured.

After the judge’s injunction, Alfredo Parrish, lawyer for Hawkeye Waste, filed a motion for reconsideration. He argued the injunction has no sufficient legal basis and is being pursued for “unlawful purposes.“ Hawkeye Waste isn’t in violation and filed its proof of insurance and payment under seal after the county filed its renewed motion, Parrish said.

Parrish, in another motion last week, said he filed a copy of the company’s workers’ compensation coverage, valid through Jan. 20, 2026, and verification of the insurance payments for all premiums through that date and asked the court to suspend the injunction.

Judge McKeever, also last week, granted a stay of the temporary injunction after receiving proof of insurance and paid premiums. The court will review this case before Jan. 20, 2026, to ensure compliance continues.

The county filed the initial temporary injunction when the insurance issue came to light last year after Hawkeye Waste employee Matthew Reuwsaat, 61, was crushed by a skid loader Oct. 31, 2024, and died Nov. 9.

The Occupational Safety and Health Administration and the Iowa Division of Workers’ Compensation investigated the accident and found the business was operating without workers’ compensation insurance.

The owner and managers of Hawkeye Waste also were charged in April with not having workers’ compensation insurance.

James Watts; Chris Watts, 30, general manager of Hawkeye Waste; Mary Sheen, 59, office manager and controller of Watts Trucking; and Chris Dohrer, 43, a contract laborer; each were charged with failure to maintain workers’ compensation insurance, a Class D felony. All have pleaded not guilty and a trial is set for Jan. 27.

Trish Mehaffey covers state and federal courts for The Gazette.

Comments: (319) 398-8318; trish.mehaffey@thegazette.com