A Butte-Silver Bow County district judge has ruled against 406 People First in a lawsuit challenging the rejection of signatures gathered for a ballot initiative that would have allowed voters in southwest Montana to weigh in on data center development in the county.

Judge Frank Joseph issued the decision on Aug. 28, finding that the advocacy group failed to meet the statutory deadline for signature submission, despite the county election administrator setting an incorrect cutoff date. The ruling clears the way for the county to proceed without the proposed ballot measure.

The Signature Dispute

The group says it gathered enough signatures to qualify for the ballot by July 31, but the county election administrator, Cynthia Sherman, initially accepted and then rejected the signatures. The dispute centers on Montana law, which requires county election administrators to count signatures one month before the state deadline—a provision 406 People First contends Sherman did not properly apply.

Judge Joseph acknowledged that Sherman set an incorrect deadline. However, he ruled that her error did not constitute a misrepresentation of fact that would trigger the legal doctrine of equitable estoppel, which could have forced the county to honor the signatures despite the procedural lapse.

“The purpose of the of the law is to provide enough time, and, so, there was plenty of time in this case for the election administrator to verify all the signatures,” said John Meyer, an attorney involved in the case, as first reported by KTVQ.

Judicial Finding on Both Parties

In his written ruling, Judge Joseph noted that both 406 People First and the county had the opportunity to consult legal counsel about the statutory deadline requirements under Montana Code Annotated 13-28-206. He found that both sides neglected to review the statute and calculate the correct deadline themselves, placing responsibility on neither party exclusively.

The decision effectively halts the ballot initiative, which sought to give Butte-Silver Bow County voters a voice on data center expansion—a topic that has drawn statewide attention as technology companies explore Montana sites for large computing facilities.

Appeal Expected

A representative of 406 People First told KTVQ the group is disappointed but prepared to challenge the ruling. “You know we’re really disappointed, but we’re prepared to appeal,” the representative said.

The case reflects broader tensions in Montana over data center development and AI infrastructure investment. Senate candidates have split on whether the state should accelerate or regulate data center growth, with some prioritizing economic opportunity and others emphasizing environmental and community concerns.

An appeal would likely extend the legal battle into late 2026 or beyond, potentially delaying any future effort by the group to place the measure on a ballot in Butte-Silver Bow County.