Federal Judge Dismisses DC BLOX Lawsuit Against Metro

A federal court has largely dismissed a lawsuit brought by Atlanta-based tech developer DC BLOX against the Metro Nashville government over the Metro Council’s recently passed moratorium on permits for the tech facilities.

U.S. District Court Judge Eli Richardson ruled Tuesday to dismiss the complaint filed by DC BLOX, the company seeking to build a data center next to the Nashville Zoo. However, the ruling gives DC BLOX 21 days to amend three of the claims made in the lawsuit, with the court saying the company had not clearly pleaded the protected property interests.

DC BLOX filed the lawsuit on Aug. 11, alleging the temporary pause on permits was a “targeted attack” against the company. The council unanimously approved a moratorium on July 21, a measure that pauses the issuing of all data center permits until Dec. 1. At that same meeting, the council also passed strict regulations related to data center construction, location and operations. This followed several months of public outcry over the proposed data center near the Nashville Zoo as well as a data center planned on the campus of Fisk University. 

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In addition, the council approved a piece of condemnation legislation Aug. 4 that would allow Metro to use eminent domain to seize control of the zoo-area property for public use. DC BLOX paid $23 million for the property in late July.

In Wednesday’s scathing opinion, Richardson plainly wrote that even though the plaintiff might believe it received a “raw deal” or was “sandbagged” by Metro via the moratorium, the lawsuit proves no legal backing for the argument.

“However, a raw deal or sandbagging — real or imagined, without more — does not a federal lawsuit make,” the ruling reads.

With the dismissal of claims, DC BLOX’s request for an injunction to block the moratorium was also thrown out by the judge.

“I have said from the beginning that Metro has both the right and the responsibility to determine appropriate land uses through its legislative and zoning processes,” says District 26 Councilmember Courtney Johnston, who represents the Nashville Zoo area, in a social media post Wednesday. “DC BLOX had every right to challenge those decisions in court. They did. This was the result.”

In a statement to Scene sister publication the Nashville Post, Metro Legal Director Tyler Yarbro also expressed her satisfaction with the court's ruling.

"I am pleased with the ruling and remain confident that Metro has acted lawfully in its dealings with DC BLOX and in the enactment of the moratorium on data center permitting,” Yarbro said.

This article was first published by our sister publication, the Nashville Post.