Former Joe Gibbs Racing exec embroiled in trade secrets case can keep new job

CHARLOTTE, N.C. (CN) — Joe Gibbs Racing cannot force its former competition director to resign his new position as the team's trade secrets case proceeds toward trial, a federal judge decided.

In a 35-page order on a preliminary injunction issued shortly before a temporary restraining order expired Thursday night, U.S. District Judge Susan Rodriguez found that Chris Gabehart — now chief motorsports officer for Spire Motorsports — will still be barred from retaining or using any of Gibbs Racing's confidential data. He must also return any data he has.

Gabehart will not be allowed to do the same type of work he did for Gibbs Racing the year before leaving the company, but he can continue attending the NASCAR Cup Series and the NASCAR O'Reilly Auto Parts Series.

Rodriguez also kept in place a $100,000 bond by Gibbs Racing, while electing not to enforce any preliminary relief against its competitor Spire. The team has demonstrated a likelihood of success in its case against Gabehart, she said, but not Spire. Gibbs also has not identified specific trade secrets misappropriated by Spire, she said, ignoring the assumption that Gabehart would give his new employer racing data he photographed.

"The court has attempted to fashion injunctive relief molded to the exigencies of this particular case and preserving the status quo without issuing an overly broad injunction," the Donald Trump appointee wrote, after converting parts of the existing temporary restraining order into a preliminary injunction.

"The fact that the confidential information has been forensically removed from his (Gabehart's) personal devices, while indicative of his willingness to comply with the legal process at this juncture, does not moot or negate the need for injunctive relief under these facts," she said.

Gibbs Racing filed suit against Gabehart in February, claiming he took photos of confidential racing data and put the pictures in a digital folder labeled "Spire." Gabehart planned to give the data to Spire, Gibbs Racing says, and shortly after he accepted a new position with the team's competitor as chief motorsports officer.

Gibbs Racing added Spire Motorsports as a defendant shortly after the suit was filed, claiming the company induced Gabehart to break his employment contract.

Spire argues it doesn't want or need Gibbs Racing's trade secrets to succeed on the track. Gabehart emphasizes he had no plan to share the pictures.

Gibbs Racing, which had secured a temporary restraining order limiting the work Gabehart could do for Spire, filed supplemental documents in the weeks after asking for preliminary relief.

Gabehart's noncompete agreement should be enforced, Gibbs Racing argued, and Spire should not be allowed to employ him. The team also asked the court to restrict the work Gabehart does for its competitor and crack down on the confidential racing data it claims Gabehart photographed. It also wanted an additional forensic review of any devices the confidential information was stored on, and for the data to be returned.

Gabehart has said he was aware of his confidentiality obligations and has no plan to share Gibbs Racing's information. He's already undergone a forensic examination on several of his devices, and there is no looming harm for his old team, he said. If he's prevented from being able to work, his career and professional reputation will be significantly harmed, he told the court.

In increasingly hostile declarations and supplemental filings, Gibbs Racing said Gabehart requires monitoring to ensure he doesn't violate the conditions of the temporary restraining order.

The team uploaded photos of Gabehart at the April 11 NASCAR Cup Series practice claiming he was listening to competition-related information through the radio. Gabehart filed a reply accusing Gibbs Racing of stalking him, "then rushing to this court to spin routine behavior into suggested misconduct."

Rodriguez initially issued a temporary restraining order March 2, but she extended it several times while she weighed the arguments. The restraining order instructed Gabehart to stop retaining or using any of Gibbs Racing's confidential data, return it to the team and quit any adjacent work for Spire. Gabehart could continue working for Spire but was restricted from performing the same type of work he did for Gibbs Racing in the past year.

Gibbs Racing has also asked for an expedited case timeline, floating the idea of a November 2026 trial. Spire says the case is still in its "infancy" and instead asked for a May 2027 trial date.