As the marijuana industry becomes more mainstream, our L.A. cannabis business lawyers are seeing many of these companies facing down similar legal challenges as other traditional companies. These include employment lawsuits, business partnership disputes, injury and premises liability litigation and more. However, many of these cases are even more complicated by the fact that the industry is so highly regulated at the state and local level, and of course the fact that their primary product is technically illegal under the federal Controlled Substances Act.
Recently in Oregon, a marijuana business owner filed a lawsuit to ask his nephew and former business partner to halt harassment after the business relationship went downhill in the wake of major crop losses. According to Oregon Live, he is seeking $700,000 in damages. In a separate lawsuit filed by attorneys for the marijuana business itself, plaintiff alleges the nephew and one-time co-owner, of defamation and trademark infringement. The company alleges defendant’s inability to produce a marketable flower with any degree of consistency cost the company several million dollars, and is seeking $2.6 million in compensation.
Plaintiff alleges that the flowers grown under defendant partner’s care were total losses in terms of a shelf-worthy flower, and that this was the result of breach of contract on his part. The company owns and operates a production facility on more than 80 acres in Central Oregon, as well as a retail store in a downtown area. The company seeks to grow with retail locations in three other cities, including Portland, where it has applied for a license. Continue reading