Judge Trims Nebius Suit; Core Zoning Fight Remains
Crayton drops Lakeshore and three claims, but residents’ bid to halt the Birmingham data center heads toward a March trial
TL;DR: Judge Javan Patton Crayton removed Lakeshore Data Center LLC and three claims from the Nebius lawsuit. The core challenge to Birmingham’s permits remains pending.
Jefferson County Circuit Judge Javan Patton Crayton narrowed the lawsuit over Birmingham’s Nebius data center Oct. 28, dismissing Lakeshore Data Center LLC and three of eight claims against the remaining defendants.
The order leaves the residents’ main zoning and permit challenges alive, WBHM reported. Crayton gave no reasons for her decisions.
Two claims were dismissed permanently: a challenge tied to Birmingham’s June 9 data-center rules and alleged breaches of the city’s technical code. A third, over noise, heat and other harm from future operations, was dismissed without prejudice. That leaves residents free to bring that claim again.
Lakeshore’s lawyer denied any liability for zoning decisions or construction nuisances. The residents’ attorney, Mark Parnell, argued its land-deal role could support a civil-conspiracy claim.
The ruling does not halt construction or settle whether Birmingham lawfully approved the project.
The dispute continues to extend beyond the building site. Homeowners Robert and Gail Sansome sought land-deal records from Regions Bank and Iron City Premier Realty, owned by Mayor Randall Woodfin’s wife, Kendra Woodfin.
Woodfin denied any role in buying, selling, financing or developing the property, or in its zoning and permits. Neither she nor her firm is a defendant.
“She should not be used as collateral damage in anyone’s political or personal dispute,” her attorneys said.
That records fight has evolved since it began. WBHM reported Oct. 9 that plaintiffs agreed to hold off on the Iron City subpoena after defendants agreed to provide land-sale documents. Parnell said those records could lead to further requests.
The consolidated case includes claims from nearby residents and the Greater Birmingham Humane Society. A non-jury trial is scheduled for March 8, 2027.
Public costs are also being challenged in a separate suit. Birmingham taxpayer Terri Michal is seeking to cancel roughly $3.2 billion in tax abatements, alleging flaws in the Industrial Development Board’s authority and public notice. Those allegations are separate from Crayton’s Oct. 28 ruling.
