Banbridge Council's changes to recycling procedures are "against the best interests of the taxpayer" and will put jobs at risk, according to a recycling company.
Bryson Recycling has launched a legal challenge to the Council's decision to bring recycling in-house.
The social enterprise company, which has provided household recycling collection in the district for 10 years, issued a pre-action protocol letter on April 5, challenging the Council's plans.
The letter constitutes the first stage of a judicial review.
Bryson are seeking to challenge Banbridge Council's decision on February 7 not to retender for a recycling service following the end of the contract on March 31.
Eric Randall, Director of Bryson Recycling, said bringing the service in-house was against the interests of residents, was not the best value option and would impact adversely on jobs and recycling effectiveness.
Banbridge Council issued a statement which said: "Banbridge District Council categorically refutes the allegations being made."