Lawsuit Verdict on Data Mining Center in Arkansas County

Press Release Submitted by Rickie Smith, with Wright Lindsey Jennings in Little Rock, AR

In a lawsuit filed on November 1, 2023, Jones Digital, LLC, a data asset mining business constructing a small facility outside of DeWitt, Arkansas, sued to block Arkansas County and several of its officers from enforcing an October 10, 2023 Ordinance passed by the Arkansas County Quorum Court. The October Ordinance attempted to impose discriminatory decibel limits and notification requirements on Jones Digital’s operations, despite the Arkansas General Assembly having forbidden such measures through Act 851 of 2023.

Following a lengthy hearing held November 17, 2023, United States District Judge Lee P. Rudofsky, granted Jones Digital LLC’s motion to preliminarily enjoin Arkansas County from enforcing the October Ordinance against Jones Digital. In his formal ruling on November 20, 2023, Judge Rudofsky noted that Jones Digital was willing to comply with the requirements of the previous ordinance passed in July, but found the County’s October Ordinance is forbidden by State law. The Court barred Arkansas County, as well as its County Judge, County Sheriff, County Prosecutor “and all acting in concert with them” from seeking to enforce it.

As Jones Digital’s attorney Alex Jones of Wright, Lindsey & Jennings LLP, explained, “Our client hoped to avoid litigation, but the October Ordinance really gave our client no choice. We are gratified that Judge Rudofsky gave this issue such a rigorous analysis and ruled decisively in Jones Digital’s favor.”

During the hearing, both sides presented extensive evidence about Jones Digital’s operations and about sound generated from the facility. Testimony from two expert witnesses verified that sound levels from the facility would pose no harm to humans and would be far lower than what are already being generated from other existing commercial operations in Arkansas County.

According to Jones “Many rumors had circulated about our client’s project: claims that it would discharge pollutants into Arkansas County streams and waterways, as well as claims that it would generate loud noise that could damage hearing and drive off waterfowl.”

During the hearing, which lasted into the evening, the County was given the opportunity to present evidence supporting rumors that had alleged grave impact on humans, wildlife, and the environment. But the Court found no proof of any harmful environmental or health effects.

According to Jones, “The hearing revealed that the project has a closed water system that will discharge nothing into the watershed. Even at peak operation, any noise would be far below anything that could damage hearing. In fact, it will generate far less noise than other ongoing commercial operations in the County, like Delta Plastics and Riceland Foods, or even routine highway traffic from Highway 165. And the Judge found that there was no evidence offered to indicate that any noise from the project would adversely affect waterfowl.”

According to Jones, “Jones Digital is sad that this had to be addressed in litigation, but it is gratified that, when Judge Rudofsky evaluated all the evidence, he concluded that there really was no support for the County’s stated concerns. He therefore struck down the October Ordinance and cleared the way for Jones Digital to begin operations.”

“Jones Digital now looks forward to working with the Arkansas County community and putting this chapter behind them. Our client has pledged to be a responsible neighbor, a timely taxpayer, and a business that will give back to DeWitt and other communities in Arkansas County.”