State courts undermine economic freedom in North Carolina
- Food truck operators have filed a lawsuit against Jacksonville's UDO, claiming it restricts their ability to operate.
- The UDO imposes a 250-foot proximity restriction that effectively limits food trucks' access to most of the city.
- Plaintiffs argue that these restrictions protect brick-and-mortar restaurants at the expense of fair competition.
In Jacksonville, North Carolina, food truck operators have filed a lawsuit challenging zoning regulations that significantly restrict their ability to operate. The Unified Development Ordinance (UDO) enacted by the city imposes proximity restrictions, requiring food vendors to be at least 250 feet from any other food vendor, residential zoning district, or restaurant. Plaintiffs allege that these restrictions effectively eliminate their ability to conduct business in 96% of the city’s properties. The lawsuit cites the Fruits of Their Labor Clause of the North Carolina Constitution, arguing that the regulations unjustly protect brick-and-mortar restaurants from competition and impose arbitrary barriers on small food businesses. The Fruits of Their Labor clause guarantees the right to earn a living and restricts state powers to act only in the interest of public health and safety. In the past, North Carolina courts have upheld this provision to overturn licensing schemes that biased against certain professions. Similar arguments are being made by the plaintiffs, who assert they are similarly situated to other food businesses that are not subjected to the 250-foot rule. The plaintiffs contend that the regulations are being applied without a legitimate governmental purpose and do not reasonably classify food trucks versus other food vendors. They assert that the claimed purpose of the UDO is to shield established restaurants from competition, drawing into question the legitimacy of the city’s actions. This case underlines the ongoing struggle for economic liberty and the balance of governmental regulations impacting small businesses. The implications of this lawsuit are significant as it could set a precedent for how local governments regulate food vendors and could potentially breathe new life into food truck businesses in Jacksonville. If the plaintiffs succeed, it may prompt local governments to revisit such restrictive zoning laws, and could affect other jurisdictions facing similar challenges with food truck regulations.