An Onslow County judge awarded damages Monday to several local food truck and business owners nearly a week after the Jacksonville City Council voted to ease restrictions on food trucks within city limits.
Institute for Justice, a nonprofit, public interest law firm, filed a lawsuit against the city in 2022 on behalf of The Spot food truck owner Tony Proctor, The Cheesesteak Hustle food truck owner Octavius “Ray” Raymond and Northwoods Urban Farm owner Nicole Gonzalez.
The goal of the lawsuit was to strike down three regulations imposed by the city on food trucks and property owners who wish to welcome food trucks onto their properties.
On Monday, the city was ordered to pay $4 in nominal damages to Proctor, Raymond and Gonzalez to reflect $1 for each of the four constitutional claims brought, said Robert Fellner, attorney for Institute for Justice.
The judge also ruled that the city must pay the court costs incurred in bringing the lawsuit. The total amount is still being determined but is likely to exceed $20,000, said Phillip Suderman, communications project manager for the Institute for Justice.
“This is a tremendous victory for our clients, Nicole Gonzalez, Octavius ‘Ray’ Raymond and Tony Proctor, who defended not just their own rights to economic freedom, but also the rights of everyone in the state,” Fellner said.
The Jacksonville City Council voted on March 17 to amend the city’s Unified Development Ordinance to eliminate the requirement that mobile food vendors be spaced 250 feet from other food vendors, residential zoning districts and restaurants.
The amendment also clarified permitted hours of operation and eliminated signage requirements.
Previously, about 96% of the city did not allow food trucks to operate. Also, property owners could not host a food truck if the property fell within 250 feet of another food truck, restaurant or residential housing.
Food trucks also had signage size limitations with no lighting allowed.
According to North Carolina court records, in May, a judge granted food truck owners a temporary injunction against the restrictions.
In addition to the UDO amendment, council also passed a fee schedule change during the March 17 meeting.
Previously, food truck operators were required to pay an annual permit fee of $300 for residents and $500 for non-residents. The fee has been reduced to $55.
Despite the city easing the restrictions, the lawsuit continued, as Institute for Justice representatives said they wanted to provide a legal record to prevent what they called “unconstitutional restrictions” from happening again.
The law firm argued that under the N.C. Constitution, people have a fundamental right to earn an honest living, as well as the right to use their private property in safe and reasonable ways, free from “arbitrary, irrational and protectionist” government regulations.
They also have a right to equal treatment under the law, meaning that the city cannot prohibit food trucks in areas where it allows similar restaurants unless it has a good and legitimate reason for singling food trucks out, Suderman said.
“Yesterday’s decision represents a resounding victory for our clients, food truck owners and the economic rights of everyone in the community,” he said.
“It holds that the city was wrong and they are now being forced to pay damages in acknowledgment of their violation of the economic rights of our clients.”
Lorna Welch, Jacksonville city attorney, said because the city repealed the restrictions, the judge dismissed the lawsuit as moot, and declined to rule on whether or not the ordinance was unconstitutional.
“We are pleased to have reached an outcome that is favorable for all parties involved and look forward to working with food trucks and other business owners in the future,” said City Manager Joshua Ray.
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