Federal Judge Imposes Restraining Order in Joe Gibbs Racing Trade Secret Dispute

A federal judge in the Western District of North Carolina has issued a limited restraining order against Chris Gabehart, who is currently employed by Spire Motorsports, in an ongoing legal battle initiated by Joe Gibbs Racing (JGR). The order, signed by Judge Susan C. Rodriguez, restricts Gabehart from engaging in specific job functions that directly overlap with his prior responsibilities at JGR, while still permitting him to work for Spire Motorsports. The lawsuit, filed by JGR, seeks over $8 million in damages, alleging a "brazen scheme" by Gabehart and Spire to pilfer and potentially disseminate proprietary business information.

The dispute stems from Gabehart’s departure from JGR at the conclusion of the last NASCAR season. Gabehart, a highly regarded engineer and former crew chief who transitioned to a competition director role, and JGR have differing accounts of the separation process and the enforceability of non-compete and non-disclosure agreements signed during his tenure. Gabehart has consistently maintained that he has not shared any trade secrets with Spire and is bound by a non-disclosure agreement with his new employer that prohibits such actions.

Joe Gibbs Racing has formally requested expedited fact discovery, aiming to examine personal devices used by Gabehart, which they suspect may have been utilized to store or transfer sensitive information to Spire leadership. Judge Rodriguez has scheduled a hearing for March 16 to address this motion for expedited discovery. The restraining order, initially delivered verbally on Monday, was detailed in a written order on Thursday, just prior to a NASCAR and IndyCar doubleheader weekend at Phoenix Raceway.

The specifics of the restraining order are as follows:

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  • Gabehart is prohibited from performing any duties related to the competition performance of a Cup Series team.
  • He is barred from utilizing any business data he may have acquired in violation of his contract and non-disclosure agreement with JGR.
  • Gabehart cannot work for a vehicle manufacturer, which in this context specifically refers to Chevrolet, given Spire Motorsports’ manufacturer alliance.

This restraining order is set to expire on March 16, 2026, at 11:59 p.m., coinciding with the court’s hearing on JGR’s motion for an injunction and the request for expedited fact discovery. As part of the court’s order, Joe Gibbs Racing is required to post a $100,000 bond. This bond is intended to cover any potential lost wages Gabehart might incur should he ultimately prevail in the legal proceedings.

The legal proceedings are moving forward with a strict timeline. Joe Gibbs Racing has a Friday deadline to submit an additional filing in support of its injunction motion. Gabehart’s responses to both the injunction and expedited discovery motions are due on Wednesday. JGR’s subsequent reply to Gabehart’s response is scheduled for next Friday.

The narrative leading to this legal action began on November 6, when Joe Gibbs and Gabehart mutually agreed to part ways. Gabehart cited concerns that his role as competition director was being compromised by what he perceived as disparate treatment of the No. 54 team compared to the other three entries within the JGR organization. The No. 54 car is driven by Ty Gibbs, grandson of team owner Joe Gibbs. Gabehart contended that the No. 54 program operated under the direct oversight of Joe Gibbs, which prevented him from fully executing his managerial responsibilities.

Discussions regarding a separation agreement commenced but reportedly faltered when JGR became suspicious of potential trade secret disclosure to Spire, following a forensic review of Gabehart’s personal devices.

According to Judge Rodriguez’s written order, the forensic review uncovered significant findings. It revealed that Gabehart had connected his personal Google Drive to his JGR computer and had conducted online research pertaining to Spire Motorsports during October and November of 2025.

Further details from the forensic analysis indicated that on November 7, 2025 – the day after the meeting where JGR and Gabehart agreed to separate – Gabehart used his personal cell phone to capture at least 20 photographs of information displayed on his JGR laptop. This captured data included:

  • Comprehensive post-race audit and performance analyses for JGR teams and drivers throughout the 2025 NASCAR season.
  • Detailed team payroll information, encompassing job titles, contract durations, annual compensation, incentive structures, and compensation plans from previous years.
  • An employee compensation calculator used for projecting and planning remuneration for key JGR positions.
  • Driver compensation details for both the 2025 and 2026 NASCAR seasons.
  • Revenue figures from sponsors, partners, and other business arrangements for the 2024, 2025, and 2026 NASCAR seasons.
  • JGR’s pit crew analytics for the 2024 NASCAR season.
  • In-depth analytics concerning racecar tire usage and its impact on race outcomes.

The court’s order explicitly stated that such information constituted "Confidential Information" as defined by Gabehart’s Employment Agreement, and the act of photographing this data was performed "without JGR’s consent."

Gabehart has since acknowledged taking the 20 photographs of sensitive JGR information. His legal counsel has informed the court that Gabehart expressed feelings of embarrassment and regret, while also affirming that he has returned all materials in his possession. The forensic analysis conducted by JGR resulted in the deletion of a total of 235 files from Gabehart’s devices.

At present, Gabehart’s employment at Spire Motorsports is constrained by the court’s order, preventing him from undertaking any duties directly related to Cup Series team competition performance or utilizing any business data he may have acquired in contravention of his contractual obligations and the non-disclosure agreement. His restriction also extends to working for a vehicle manufacturer, which in this case means he cannot represent Chevrolet.

The court’s order elaborated on the non-compete covenant: "Under the Agreement, Plaintiff submits because Defendant Gabehart’s termination was with cause, the non-compete covenant term is 18 months and is limited to the ‘services of the general type of services that [Gabehart] provided to [JGR] in the year prior to such termination to any other NASCAR Xfinity Series or NASCAR Cup Series racing team (or their respective successor series) or any vehicle manufacturing company or other person or entity that provides goods or services to such a team.’ (Doc. No. 8-2). This covenant does not completely bar an employee from working in the industry. Rather, it restricts the employee from performing services provided to the employer in the year prior to such termination. Similar covenants not to compete with 18-month restrictions in both time, term, and territory have been found reasonable under North Carolina law."

Notably, the 18-month duration aligns with the remaining term of Gabehart’s original contract with JGR for his position as competition director. Spire Motorsports has asserted that it has not received any trade secrets from JGR and has no interest in doing so, citing their existing partnerships with Hendrick Motorsports and Chevrolet.

As of this report, Joe Gibbs Racing has not yet presented definitive evidence proving that Gabehart shared the disputed data with Spire. However, this lack of concrete proof is the basis for their motion for expedited discovery, which the court is set to review. The parties are scheduled to argue this matter in less than two weeks.

The dispute also involves counterclaims. Gabehart has asserted that JGR breached their contract by failing to honor his separation agreement and by withholding bonuses that were contingent upon performance metrics achieved last season. JGR’s legal representatives have stated that the team will not compensate Gabehart for actions they deem as theft. This aspect of the legal conflict is also slated for discussion in the upcoming court proceedings.

A full copy of the court’s order is available for review.

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