Legal Pot Might Be Sued Out of Business

The original suit claimed that the aroma from a nearby marijuana grow made horse riding less pleasant.Thinkstock file photo

A ruling by the U.S. Court of Appeals for the Tenth Circuit is raising eyebrows in the legal marijuana industry and the Denver weekly newspaper Westword warns that the litigation “… is based on federal racketeering laws, that anti-marijuana forces hope will help them destroy the marijuana industry here and throughout the country.”
At issue is an argument that a Colorado pot-growing operation damages neighboring property owners — they say their horse-riding experience is diminished by the smell from marijuana and other concerns, including construction. In its decision, the 10th Circuit effectively found that the plaintiffs’ use of the Racketeer Influenced and Corrupt Organizations Act (RICO) statute had merit because the adjacent property violates federal laws against marijuana, which is specifically mentioned in the RICO laws.
Westwood breaks it down: “This ruling could be game-changing. If the Reillys and Safe Streets Alliance succeed, other individuals or groups would be able to file complaints against marijuana businesses using RICO on a scale so massive that the entire industry could sink under the weight of litigation — or so opponents hope.”
Read the story here:
How Bizarre Pot Smell Ruling Could Destroy Colorado’s Marijuana Industry

Supreme Court Backs Colorado, Nixes Neighboring State’s Lawsuit

The U.S. Supreme Court this week handed pro-marijuana states a 6-2 victory against litigation from neighboring non-marijuana states. Nebraska and Oklahoma argued that Colorado’s law violates the federal Controlled Substances Act, which treats marijuana as a dangerous drug and forbids its sale or use. They urged the Supreme Court to take up the issue as an “original” matter and declare that Colorado’s law was preempted by the federal drug laws.

The Los Angeles Times explains that “… usually, the high court hears appeals from lower-court rulings. But on rare occasions, the justices are called upon to decide disputes between states. Typically, however, these ‘original’ suits involve disagreements over boundaries or the use of river water that flows from one state to another.

The Times also noted that “… the suit brought by Nebraska and Oklahoma also implicitly challenged the Obama administration for its refusal to intervene more directly in Colorado.
Since California’s voters in 1996 authorized medical use of marijuana, 22 other states have adopted similar measures. Colorado, Washington, Oregon and Alaska went further and allowed for the production and sale of marijuana for recreational use.”

“The state of Colorado authorizes, oversees, protects and profits from a sprawling $100-million-per-month marijuana growing, processing and retailing organization that exported thousands of pounds of marijuana to some 36 states in 2014,” the states argued. “If this entity were based south of our border, the federal government would prosecute it as a drug cartel.”

Read the Times report here:
Supreme Court rejects challenge to Colorado marijuana law from other states