Appeals Court Splits on Coastal Rules Lawsuit

A North Carolina appeals panel affirmed part of a Wake County ruling and remanded part of the coastal regulation dispute.

Updated on Nov. 12, 2026 in Law

Appeals Court Splits on Coastal Rules Lawsuit

The North Carolina Court of Appeals issued a split decision in the lawsuit between the Coastal Resources Commission and the Rules Review Commission over 30 rules the Rules Review Commission objected to and removed from the Administrative Code. The three-judge panel affirmed part of a Wake County Superior Court ruling in favor of the Coastal Resources Commission and remanded part of the case back to that court.

Why it matters

The ruling affects how North Carolina's coastal regulators can readopt rules that the Rules Review Commission found vague or inconsistent with state statutes. Judge John Arrowood disagreed with the majority's decision to reverse the lower court on part of the case.

The three-judge panel affirmed part of the Wake County Superior Court ruling and remanded part of the case back to that court. The Division of Coastal Management said the case remains in active litigation, and the Rules Review Commission's Nov. 24 agenda includes a closed session to consult attorneys about it.

The players

Coastal Resources Commission

The Coastal Resources Commission is a North Carolina state body that sets rules for the state's coastal areas and their development.

Rules Review Commission

The Rules Review Commission is a North Carolina body that reviews proposed state agency rules and can object to those it finds vague or inconsistent with statutes.

The details

The Coastal Resources Commission and the Division of Coastal Management filed suit on Nov. 3, 2023, after the Rules Review Commission objected to numerous rules submitted for readoption. The Rules Review Commission upheld objections to 30 rules, which the state codifier then pulled from the Administrative Code, while the Coastal Resources Commission temporarily restored 16 longstanding rules.

Nov. 3, 2023: The Coastal Resources Commission and the Division of Coastal Management filed the lawsuit.
About December 2023: The Coastal Resources Commission temporarily restored 16 rules.
Nov. 24, 2026: The Rules Review Commission's meeting includes a closed session on the case.

Legal Context

The dispute turns on the North Carolina Administrative Procedure Act process that lets the Rules Review Commission object to agency rules, and the appellate split will shape how far that review power extends. Whether courts defer to the commission's objections will determine how agencies such as the Coastal Resources Commission can readopt contested rules.

Coastal property owners and developers in North Carolina face uncertainty about which coastal permit and development rules will apply while the litigation continues. The outcome determines whether the 30 objected-to rules return to the Administrative Code or stay removed.

The takeaway

Ongoing disputes between state agencies can leave coastal rules in limbo, so residents with coastal permits should track the remanded case in Wake County Superior Court.

What happens next

The Rules Review Commission meets Nov. 24 with a closed session to consult attorneys about the case, and the remanded portion returns to Wake County Superior Court.