How Private Prisons Sued The State of Arizona for Not Having Enough Prisoners
In 2010, a significant legal battle erupted in Arizona, highlighting the controversial practice of prisoner quotas in private prison contracts. Management & Training Corp. (MTC), a private prison company, sued the state of Arizona for failing to provide enough prisoners to meet the contractual quota stipulated in their agreement.
The lawsuit centered around the Marana prison, a 1,400-bed facility operated by MTC. The contract between MTC and Arizona included a provision guaranteeing 97% occupancy. When the state failed to meet this quota, MTC sought $10 million in damages, claiming financial losses due to the shortfall in prisoner numbers.
This case brought national attention to the practice of “lock-up quotas” or “occupancy guarantee clauses” in private prison contracts. These clauses typically require states to keep prisons filled to a certain capacity, often 90% or higher, or pay for empty beds.