Kinsley v. Ace Speedway Racing, Ltd.

Summary

The Court held that the defendants sufficiently alleged colorable claims under the Fruits of Their Labor Clause and the Equal Protection Clause of the North Carolina Constitution. Because the allegations, taken as true at the motion-to-dismiss stage, established constitutional violations and no adequate alternative remedy, sovereign immunity did not bar the counterclaims. The Court also held that the least-intrusive-remedy question was premature because the appropriate remedy could be determined only after factual development and proof of a constitutional violation.