Lrs South, LLC v. Benton County Solid Waste Management District and the Benton County Solid Waste Management District Board

2026 Ark. App. 4
Court of Appeals of Arkansas·Decided January 7, 2026·Published

Opinion

Cite as 2026 Ark. App. 4

ARKANSAS COURT OF APPEALS DIVISION II

No. CV-24-209

LRS SOUTH, LLC Opinion Delivered January 7, 2026

APPELLANT

APPEAL FROM THE BENTON

COUNTY CIRCUIT COURT

V. [NO. 04CV-23-1687]

BENTON COUNTY SOLID WASTE HONORABLE JOHN R. SCOTT, MANAGEMENT DISTRICT AND THE JUDGE BENTON COUNTY SOLID WASTE MANAGEMENT DISTRICT BOARD APPELLEES

REVERSED AND REMANDED

WENDY SCHOLTENS WOOD, Judge This is a statutory-interpretation case involving several solid-waste-management statutes. LRS South, LLC (“LRS South”), appeals the dismissal of its complaint for declaratory judgment and injunctive relief against Benton County Solid Waste Management District (“District”) and the Benton County Solid Waste Management District Board (“Board”) (collectively, “appellees”). For reversal, LRS South argues that the circuit court erred in finding (1) that its proposed solid-waste transfer station is a solid-waste disposal facility within the meaning of Arkansas Code Annotated section 8-6-222 (Repl. 2022) and (2) that the District could adopt more restrictive standards than those established by state law for its proposed transfer station. We agree with LRS South on its first point, and we reverse and remand for further proceedings.

I. Background Facts and Procedural History LRS South, a waste-management and recycling company, sought to build and operate a solid-waste transfer station in Benton County. To do so, it was required to obtain a series of permits pursuant to rules promulgated by the Arkansas Pollution Control and Ecology Commission (“Commission”), Arkansas Department of Environmental Quality (“ADEQ”), and the District. The District is a regional solid-waste-management district that provides solid-waste-management programs for Benton County pursuant to the Arkansas Solid Waste Management Act (the “Act”), codified at Arkansas Code Annotated sections 8-6-201 to -223 (Repl. 2022). The Board is responsible for providing a solid-waste-management system for the District.

LRS South was first required to obtain a “Certificate of Need” from the District and its Board. It was then required to obtain a permit from ADEQ. In August 2022, LRS South applied to the District for a Certificate of Need to construct and operate a new transfer station at 1234 East Cloverdale Road in Rogers. The proposed transfer station is not within two hundred feet of Beaver Lake, but the parties stipulated that it is within two miles of Beaver Lake. The District subsequently initiated a thirty-day public-comment period and scheduled a public hearing to consider the application. On October 25, shortly before the Board was scheduled to meet and review the application, the District informed LRS South that the location of its proposed transfer station did not meet the requirements of District Rule 17.02, which prohibits locating a solid-waste facility within two miles of certain bodies of water, including Beaver Lake. See

https://www.sos.arkansas.gov/uploads/rulesRegs/Arkansas%20Register/2014/march14R eg/207.00.13-001.pdf (archived at https://perma.cc/Z75S-F86D). On October 27, LRS South withdrew its application for a Certificate of Need.

On June 27, 2023, LRS South filed a complaint for declaratory judgment and injunctive relief in the Benton County Circuit Court against the appellees. With respect to LRS South’s proposed transfer station, it alleged that “Rule 17.02’s setback requirement is more stringent than allowed by state law.” LRS South, citing Commission Solid Waste Management Rule 22.902(a)(5), alleged that state law provides that new solid-waste transfer stations “shall not be located within . . . [t]wo hundred (200) feet to an existing residence, place of business, or drinking water supply not owned or leased by the applicant,” and its proposed transfer station is in compliance with Rule 22.902(a)(5). See https://www.adeq.state.ar.us/regs/files/reg22_final_080426.pdf (archived at https://perm a.cc/E3FX-9CC8). Accordingly, LRS South sought a declaratory judgment that the two-mile- setback requirement is partially invalid and a permanent injunction preventing the appellees from applying and enforcing the two-mile-setback requirement to LRS South’s proposed transfer station.

A bench trial was held on December 5, 2023.1 At the conclusion of trial, the circuit court orally denied LRS South’s complaint. On December 11, the court entered an order denying and dismissing the complaint:

1 An agreement on stipulation of facts was introduced as a joint exhibit at trial.

3. The court finds that pursuant to Arkansas code (the Arkansas Solid Waste Management Act) a “transfer station” is a facility used to manage the removal, compaction, and transfer of solid waste from collector vehicles and smaller vehicles to greater capacity transport vehicles. Based on the aforementioned statutory definition a transfer station is not a solid waste disposal site but instead a solid waste disposal facility.

4. The court further finds that pursuant A.C.A § 8-6-222, the phrase “solid waste disposal” first modifies and describes the noun “sites”. The conjunction “and”

makes the aforementioned phrase then modify the noun “facilities”. The court finds that the statute allows the defendant to adopt more restrictive standards to both solid waste disposal sites and to solid waste disposal facilities which the defendant has done.

Further the court concludes that a solid waste disposal site is indeed a final resting place for a solid waste while a solid waste disposal facility is some location prior to the final resting place i.e. a transfer station.

On December 21, LRS South filed a motion for new trial, which was denied on December 27. LRS South filed its notice of appeal on January 9, 2024, and this appeal followed.

II. Points on Appeal

LRS South argues two points on appeal: (1) the circuit court erred in finding that its proposed transfer station is a solid-waste disposal facility under Arkansas Code Annotated section 8-6-222, and (2) the circuit court erred in finding that the District could adopt more restrictive standards than those established by state law for its proposed transfer station.

A. Standard of Review and Applicable Law Appellate courts review appeals from bench trials, including declaratory judgments, under the clearly erroneous standard. Pop-A-Duck, Inc. v. Gardner, 2022 Ark. App. 88, at 5, 642 S.W.3d 220, 225. A finding is clearly erroneous when, although there is evidence to support it, the reviewing court on the entire evidence is left with the definite and firm conviction that a mistake has been made. Id., 642 S.W.3d at 225. We review issues of

statutory interpretation de novo. Benton Cnty. Reg’l Solid Waste Mgmt. Dist. v. Waste Mgmt. of Ark., Inc., 2023 Ark. App. 538, at 6, 680 S.W.3d 88, 92.

The basic rule of statutory construction is to give effect to the intent of the legislature.

Id. at 7, 680 S.W.3d at 92. When the language of a statute is plain and unambiguous, legislative intent is found in the ordinary meaning of the language used. Id., 680 S.W.3d at 92. Statutory language is ambiguous if it is open to two or more constructions or if it is of such obscure or doubtful meaning that reasonable minds might disagree or be uncertain as to its meaning. Hotels.com, L.P. v. Pine Bluff Advert. & Promotion Comm’n, 2024 Ark. 86, at 7, 688 S.W.3d 399, 405. When a statute is ambiguous, we must interpret it according to legislative intent, and our review becomes an examination of the whole act. Id., 688 S.W.3d at 405.

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Lrs South, LLC v. Benton County Solid Waste Management District and the Benton County Solid Waste Management District Board, 2026 Ark. App. 4 (Ark. Ct. App. 2026).

2026 Ark. App. 4 (Lrs South, LLC v. Benton County Solid Waste Management District and the Benton County Solid Waste Management District Board) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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