Joe Gibbs Racing’s legal battle with former competition director Chris Gabehart and Spire Motorsports took another turn Wednesday, with a federal judge allowing key counterclaims against the NASCAR powerhouse to move forward.
U.S. District Judge Susan C. Rodriguez denied JGR’s motion to dismiss Spire Motorsports’ counterclaims stemming from an alleged employee-trade agreement between the two organizations. Rodriguez also allowed part of Gabehart’s counterclaims against his former employer to survive, while dismissing another portion of his case.
The Aug. 26 ruling does not decide whether Spire or Gabehart will ultimately prevail on those claims. Instead, it means significant pieces of their cases against JGR have cleared an early legal hurdle and can continue toward the trial currently scheduled for February 2027. JGR had filed motions in July seeking dismissal for failure to state a claim.
It adds another layer to a lawsuit that has become increasingly complicated since JGR first took legal action against Gabehart in February.
Judge Allows Spire’s Counterclaims Against JGR to Move Forward
At the center of Spire’s counterclaim is an alleged agreement involving Robert “Cheddar” Smith.
According to Spire’s court filings, JGR sought to hire Smith in 2025 while he was working for Spire and subject to contractual restrictions. Spire alleges it ultimately agreed to release Smith so he could join JGR, where he became car chief for Ty Gibbs’ No. 54 team.
But Spire says there was something expected in return.
The organization alleges the two sides reached an agreement under which Spire could select a willing competition-level JGR employee during the 2025 season or receive a $100,000 payment. Spire contends it fulfilled its side by releasing Smith, but that JGR failed to honor its end of the alleged agreement. Its counterclaims include theories of an express oral contract, an implied-in-fact contract and unjust enrichment.
JGR sought to have those claims dismissed.
Rodriguez denied that request Wednesday, allowing Spire’s claims over the alleged arrangement to continue.
That is an important distinction. The ruling is not a finding that JGR breached a contract or owes Spire money. At this stage, the court was considering whether Spire had stated legally plausible claims assuming its pleaded allegations are true, not deciding the ultimate merits of the dispute.
Chris Gabehart’s Counterclaims Get a Split Decision
Gabehart also brought his own counterclaims against JGR after the organization sued him.
His June filing accused his former employer of, among other things, improperly withholding compensation and accessing privileged or personal information during the forensic examination that became a central part of the broader dispute. Gabehart characterized JGR’s actions as a campaign to punish him after his departure.
Wednesday’s result was mixed.
Rodriguez granted JGR’s motion to dismiss the portion of Gabehart’s claims alleging the organization wrongfully accessed attorney-client privileged communications. The remainder of the challenged claims were allowed to proceed, according to the ruling described following Wednesday’s hearing.
That leaves both Gabehart and Spire with active counterclaims against JGR as the litigation continues.
JGR, Gabehart and Spire Are Headed Toward 2027 Trial
The underlying case began when JGR sued Gabehart, its longtime former employee, amid his departure for Spire.
Gabehart worked for JGR from 2012 through 2025, rising from engineer to championship-winning crew chief and eventually competition director before leaving the organization. He subsequently joined Spire as its chief motorsports officer.
JGR has alleged that Gabehart misappropriated confidential information and trade secrets during his departure. Its original complaint detailed the discovery of JGR information in Gabehart’s possession, including racecar setup files, and the organization has also pursued claims related to his contractual restrictions and Spire’s conduct.
Gabehart and Spire have disputed JGR’s broader allegations against them. Spire has maintained in its court filings that it neither sought nor received JGR confidential information from Gabehart.
The legal fight is currently scheduled to reach trial on Feb. 1, 2027, with the proceeding expected to last approximately nine days.
Wednesday’s ruling ensures that, barring another resolution before then, JGR will not only be pursuing its claims against Gabehart and Spire. It will also continue defending itself against counterclaims brought by both defendants.
And with discovery and other pretrial proceedings still unfolding, one of NASCAR’s most closely watched off-track disputes remains far from finished.
Joe Gibbs Racing Suffers Setback in Chris Gabehart, Spire Lawsuit