RALEIGH — The North Carolina Supreme Court has affirmed the ruling by the Court of Appeals that Ace Speedway’s case involving constitutional violations during COVID lockdowns against the state can proceed.
“The trial court correctly concluded that the claims are valid and therefore the State’s motion to dismiss must be denied. The Court of Appeals, in turn, properly affirmed that ruling,” the Supreme Court’s Aug. 23 ruling in Kinsley v. Ace Speedway states. “We affirm the decision of the Court of Appeals.”
In 2020, during COVID-19 restrictions, Ace Speedway’s owner publicly criticized the governor’s orders limiting crowd sizes and held races exceeding the limits. The state took enforcement action specifically against Ace Speedway, issuing an abatement order to shut it down.
Ace Speedway filed a lawsuit claiming constitutional violations against the state, in particular, violations of their right to earn a living and allegations of selective enforcement. The case made it to the North Carolina Court of Appeals, which ruled in August 2022 that the case can proceed.
The Supreme Court’s ruling says that Ace Speedway’s allegations, if proven true, constitute colorable constitutional claims that pierce the state’s sovereign immunity.
The ruling cites application under the “Fruits of Their Labor” clause, in which Ace Speedway alleged the state’s true purpose was retaliation, not public health, and the means were unreasonable. The ruling also speaks to claims under the Equal Protection clause, where Ace Speedway alleged discriminatory purpose, specifically retaliation for speech, and the effect it had of singling out Ace Speedway while ignoring other violators.
The ruling allows the lawsuit to proceed but does not decide the merits of the claims, and the court emphasized these are just allegations at this stage. The court also rejected the state’s argument about remedies, saying it’s too early to consider that issue.
