A group representing private trash haulers sued New York City in a bid to overturn caps on the permitted loads of solid waste transfer stations in three low-income districts.

The lawsuit, filed Nov. 16 in state Supreme Court by the National Waste & Recycling Association and member companies, challenged a local law signed by Mayor Bill de Blasio (D) in August to limit capacity at solid waste depots in outer-borough areas. The bulk of the city’s trash goes to those areas for long-haul shipment to incinerators and landfills.

The legislation, first proposed more than 10...