Federal Lawsuit Filed Against Tennessee City Over Food Truck Fees

A food truck in Los Angeles on June 19, 2019. Samantha Trauben/Getty Images for International Rescue Committee

The Beacon Center of Tennessee, a think tank advocating for free markets and limited government in the state, has filed a federal lawsuit against the city of Mt. Juliet, Tennessee, over what it deems as discriminatory and unconstitutional food truck regulations.

The lawsuit challenges an ordinance that imposes a fee of $100 per day on food trucks from outside the city, while local Mt. Juliet food trucks are charged only $100 per year.

The lawsuit, filed on behalf of three food truck owners, argues that this differential fee structure is unconstitutional and discriminates against out-of-city food truck operators and their right to earn a living without intervention from the government.

Fighting for Fairness and Economic Freedom

The lawsuit, filed in the U.S. District Court for the Middle District of Tennessee on November 17, is filed on behalf of Eileen and Michael Maltese of Mikey’s Pizza, William “B.J.” Lofback of Funk Seoul Brother and Daniel Yarzagaray of Chivanada.

“Mt. Juliet’s discrimination against food trucks from outside the city is unfair and unconstitutional,” said Wen Fa, Director of Legal Affairs at The Beacon Center, in a statement. “Outside of the startling difference between paying $100 per day as an out-of-city resident compared to just $100 per year for city residents, it becomes even more appalling when you realize what these food truck operators did for Mt. Juliet residents in their time of need.”

Fa went on to explain that out-of-town food truck owners stepped up to help the community after a 2020 tornado.

In the aftermath of the 2020 tornado, these food trucks played a crucial role in aiding Mt. Juliet’s recovery, offering free food to those affected, according to the lawsuit reviewed by The Epoch Times.

The Beacon Center argues that despite their community service during this crisis and the COVID-19 pandemic, they now face restrictive laws that threaten their economic viability.

“Despite stepping up to help Mt. Juliet after the tornado, food trucks like Funk Seoul Brother and Chivanada are now being punished by Mt. Juliet’s protectionist food truck law,” Mr. Fa added. “This double standard needs to end, and if we are victorious, every food truck operator in the state will be treated equally under the law.”

The History of Food Trucks in Mt. Juliet

“Mt. Juliet has always been hostile to food trucks,” the Beacon Center claims in a statement. “Before March 2020, Mt. Juliet permitted food trucks to operate only if they received permits to host a temporary event—which could take place no more than six times a year. In March 2020, Mt. Juliet—to the delight of its residents—suspended its burdensome food truck restrictions.”

The think tank said food trucks from Nashville and surrounding communities were welcomed because they offered free food to help city residents recover from a devastating tornado.

Aerial footage shows home damage in Tennessee's Mt. Juliet area on March 3, 2020. Courtesy of WSMV

“Further, because COVID-19 forced many restaurants to close, Mt. Juliet waived its food truck regulations to allow residents to order food in a safe environment,” Beacon claimed in the statement. “The very next month, Mt. Juliet re-imposed its burdensome restrictions on food trucks. The city acknowledged that its return to the status quo was driven by economic protectionism.”

The city initially suspended its stringent food truck regulations during the pandemic but soon reinstated them, citing economic protectionism for local brick-and-mortar businesses as a key reason that has led to today’s legal standoff against the two-tier fee structure.

Prior to the tornado and pandemic, food trucks were limited to no more than six occasions annually in order to provide safe alternatives to indoor dining. As businesses reopened, the city reinstated the permit process in July 2023.

The council agreed to a pilot program that heavily favored local food trucks, now the subject of the lawsuit.

Constitutional Rights and Economic Livelihood

The lawsuit argues that the Mt. Juliet ordinance violates the U.S. and Tennessee constitutions by infringing upon the right to earn a living and the right to equality before the law.

The Beacon Center’s lawsuit asserts multiple claims under federal and state constitutions, challenging the fee discrepancy as a violation of equal protection and due process rights.

It contends that the ordinance is not motivated by health and safety concerns but rather by a desire to protect in-city restaurants from competition.

It seeks an injunction against the enforcement of the ordinance, a declaration of its unconstitutionality, nominal damages, and legal costs.

City’s Stance and What’s Ahead

The city’s stance reflects a broader tension between supporting local brick-and-mortar establishments and accommodating mobile entrepreneurs.

Earlier proposals by the city council to allow food trucks in residential and industrial neighborhoods sparked debate, with concerns raised about protecting local businesses and the perceived lack of tax revenue from food truck vendors, according to the lawsuit.

This lawsuit could set a precedent for how municipalities regulate food trucks, balancing the interests of local businesses with the rights of mobile entrepreneurs. The outcome may influence similar regulatory frameworks across Tennessee and potentially beyond.