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Legal proceedings in the contentious lawsuit between Joe Gibbs Racing (JGR) and former employee Chris Gabehart, along with Spire Motorsports, saw a significant development Wednesday as JGR formally withdrew a central allegation from its amended complaint. While much of the legal filings presented on Wednesday represented a reiteration of previously stated claims and counterclaims, JGR’s decision to retract a specific accusation marks a notable shift in the ongoing litigation.
The withdrawn allegation, detailed in the second amended complaint filed by Joe Gibbs Racing, centered on claims that Gabehart was actively involved in Spire Motorsports’ competition strategy and decision-making, in violation of his contractual obligations. The original filing stated: "A Spire employee has informed a JGR employee that Gabehart is in charge of and/or significantly participating in Spire’s competition strategy and decisions. Employees were instructed not to discuss the fact Gabehart is leading and/or participating in Spire’s competition and strategy decision making process outside of Spire. There is no legal justification for advising its employees to conceal the true nature of Gabehart’s services. Spire is aware that Gabehart leading and/or participating in Spire’s competition strategy and decision-making violates his noncompete obligations set forth in the Agreement.”
This specific claim was considered one of the more substantial accusations leveled by Joe Gibbs Racing since the legal action commenced in February. However, the team has now requested, and the court has granted, a motion to strike this particular allegation from the official record. In a filing on Wednesday, JGR explained its rationale: "In discovery Spire Motorsports II, LLC (“Spire”) requested information supporting the allegations contained in paragraph 129 of the Second Amended Complaint. JGR responded to Spire’s request and concedes that it does not possess nonprivileged information sufficient to support the allegations contained in paragraph 129 of the Second Amended Complaint.”
While JGR’s statement cites a lack of "nonprivileged information," it is important to note that attorney-client privilege typically shields such information from disclosure in legal proceedings. The concession effectively renders the allegation unsubstantiated from JGR’s perspective within the scope of privileged discovery.
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This development occurs against a backdrop of ongoing accusations regarding the handling of privileged information. Attorneys for Chris Gabehart have previously alleged that JGR improperly accessed and attempted to utilize confidential attorney-client communications. These accusations state: "During the course of the examination, JGR’s forensic examiner improperly disclosed dozens of Mr. Gabehart’s privileged attorney-client communications—emails between Mr. Gabehart and his counsel—directly to JGR’s counsel. JGR’s forensic examiner’s unauthorized access and disclosure occurred at a time when JGR’s counsel was not yet entitled to see any of the content from Mr. Gabehart’s personal accounts and devices—let alone his privileged and confidential communications with his lawyers. This serious breach of the April 22 Protocol and violation of the attorney-client privilege has forced Mr. Gabehart to incur substantial additional attorneys’ fees.”
A Rehash of Defense Arguments
The broader legal battle has seen both sides repeatedly present arguments previously made in court and in prior filings. Spire Motorsports and Chris Gabehart have maintained that Joe Gibbs Racing acted unjustly and illegally in withholding Gabehart’s wages and fabricating a reason for his termination, thereby avoiding due payment and bonuses.
In their defense, Gabehart’s representatives have asserted: "Mr. Gabehart properly exercised his contractual rights under Section 6 of the Agreement when his job duties diverged materially from what he was promised. Rather than honor those rights, JGR stopped paying him, subjected him to an invasive forensic examination, and—after that examination confirmed what Mr. Gabehart had been telling JGR—filed this lawsuit and sent a ‘for cause’ termination letter citing the very conduct the examination had exonerated. JGR’s internal records confirm the charade: its own Termination Payroll Notice lists the termination reason as ‘Voluntary Resignation,’ and Coach Gibbs himself publicly stated that he and Mr. Gabehart ‘just decided to go our separate ways.’”
Furthermore, both Spire and Gabehart have pointed to the departure of Joe Gibbs Racing’s Chief Operating Officer, Michael Guttilla, to become President of Legacy Motor Club. They argue that this transition occurred without similar legal repercussions from JGR, highlighting what they perceive as a double standard. Their filing stated: "JGR did not file suit. JGR did not seek injunctive relief. JGR did not demand forensic examinations. Yet JGR seeks to prevent Mr. Gabehart from working for Spire, a Chevrolet-aligned team that does not share the same manufacturer relationship. This double standard is not the protection of legitimate business interests—it is retaliation.”
Gabehart is seeking legal remedies for alleged breach of contract and violations of the North Carolina Wage and Hour Act.
Spire’s Counterclaims and Accusations of Bad Faith
Spire Motorsports and its co-owner, Jeff Dickerson, have also leveled accusations against Joe Gibbs Racing, characterizing the current litigation as an act of bad faith and petulance. In Spire’s response to JGR’s motion to dismiss, the team argued: "When talent, sponsors, and victories flow in JGR’s direction, JGR has done no wrong. But when talent, sponsors, and victories flow anywhere else, JGR sues and complains. JGR’s effort to dismiss Spire’s counterclaims is emblematic of this mindset.”
A key element of Spire’s counterclaims involves the hiring of Robert "Cheddar" Smith, a longtime NASCAR Cup Series car chief, by JGR in April 2025. Smith was reportedly under contract with Spire at the time. Dickerson, in a declaration, detailed a proposed arrangement with JGR, suggesting a trade for personnel, or a monetary settlement of $100,000, in exchange for releasing Smith from his contract. Dickerson asserted that JGR had already been in contact with Smith regarding future employment, making a mutually beneficial agreement plausible.
According to Dickerson, Spire also targeted Tyler Allen, crew chief for JGR’s No. 54 car, who had reportedly been denied a contract release by JGR. Spire contends that JGR failed to uphold its end of the bargain, either by refusing to release a comparable employee or by not providing the agreed-upon $100,000 payment.
Consequently, Spire has filed a countersuit against JGR for unjust enrichment. The filing outlines these claims: "Spire asserts three counterclaims arising from these facts. Counterclaims 67–89 alleges an enforceable oral contract that Spire fully performed by releasing Smith, and that JGR materially breached by refusing to release a comparable employee or pay $100,000. Counterclaims 68–71 pleaded in the alternative, alleges the same bargain arose as an implied-in-fact contract from the parties’ words, conduct, and course of dealing. Counterclaims 75–80 alleges JGR was unjustly enriched by accepting and retaining the benefit of Smith’s release without compensating Spire.”
Spire’s introduction to these claims provided a more pointed summary: "Recognizing that Cheddar’s non-compete with Spire prohibited him from coming to rescue Ty Gibbs’ struggling No. 54 car, JGR cut a deal with Spire. By its terms, Spire agreed to forgo its contractual rights as to Cheddar in exchange for its pick of a willing competition-level employee from JGR during the 2025 season (or a payment of $100,000). Spire upheld its end of the bargain. JGR did not. Now that Spire asks for some accountability, JGR moves to dismiss by ignoring Spire’s well-pled allegations.”
The legal battle between Joe Gibbs Racing, Chris Gabehart, and Spire Motorsports continues, with the withdrawal of one allegation marking a tactical adjustment in the ongoing litigation. The core disputes surrounding contractual obligations, alleged breach of employment agreements, and the handling of proprietary information remain central to the case.
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