Taking the High Ground: Where Cannabis Insurance Litigation Is Trending (and Why)

May 23rd, 2022|Categories: Emerging Litigation & Risk, HB Emerging Law Notes, HB Tort Notes, Journal on Emerging Issues in Litigation, New Featured Post for Home Page, Tort Litigation|Tags: , , , , , , , , , , , |

The Authors John B. McDonald is an experienced litigator practicing in the Seattle and New York offices of Harris Bricken, where he represents clients in complex commercial, insurance, and partnership matters. Jihee Ahn is an experienced complex commercial litigator with Harris Bricken. She also chairs the firm’s Dispute Resolution/Litigation practice. Interviews with leading attorneys and other subject matter experts on new twists in the law and how the law is responding to new twists in the world. Taking the High Ground:  Where Cannabis Insurance Litigation Is Trending (and Why) "Absent a choice of law provision, the location where most of the insured activity took place will likely dictate which law applies. But how have federal courts reacted to applying cannabis-friendly state law in a forum where federal law arguably addresses underlying state concerns? The answer is: inconsistently." Abstract: The use and possession of cannabis remains illegal under the federal Controlled Substances Act. But a patchwork of state laws is bringing the country closer to some form of legalization. Some states allow its use for medical purposes, others have made it legal for recreational purposes, and others have decriminalized it. But when cannabis is involved in disputes that lead to litigation, and that litigation leads to policyholder–insurer disputes, that state law [...]

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Cannabis, CBD: Advertising and Drug Test Problems

July 12th, 2020|Categories: Cyber Risk, Emerging Litigation & Risk, HB Emerging Law Notes, HB Risk Notes|Tags: , , , , , |

COVID-19 vs Cannabis: Are Closures Legal? In the category of “damned if you do; damned if you don’t,” Massachusetts Governor Charlie Baker shut down recreational cannabis shops, citing concerns over the spread of COVID-19. The dispensaries say the shutdown could seriously damage the industry. But, the governor said, the spread of disease will continue to damage the health of his constituents, especially as residents of states where recreational marijuana is illegal, come to Massachusetts to do their cannabis shopping. Citizens of the state may still obtain medical cannabis, as reported by WBUR. Too Much TCH: Can CBD Use Cost You Your Job? A New York truck driver has sued a CBD company for allegedly making a product, which he says he uses for pain relief, with too much THC, more than the label indicates. A Pennsylvania woman filed a similar case and a Missouri school bus monitor had a similar experience. Another Missourian blames the store where he purchased his CBD, saying he was assured the product contained minimal THC. All claim they were told they could pass drug tests. All failed their test. And all lost their jobs, according to a post on the Huffs & Puffs website. "Courtesy of a dearth of strict standards of testing, many companies tend to list lower values of THC on the product label," [...]

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Nevada to try limited banking for cash-heavy pot industry — ElkoDaily.com

June 26th, 2019|Categories: HB Risk Notes|Tags: , , , , , , , , |

Most marijuana dispensaries are forced to handle massive amounts of cash. Business owners are paying their employees with envelopes full of dollar bills, and bringing duffle bags full of money to government buildings to pay their taxes. That could all change with the new Nevada state law that allows dispensaries to offer a cashless option. This program will be tested for three years before being considered as a permanent feature. State Treasurer Zach Conine likened the system to gift cards or digital apps such as Venmo and said the program would not include broader banking services like loans. Since marijuana is still not legal federally, states are on their own with coming up with a cashless option. Hawaii took similar steps and included a debit payment app, which has spread to other states as well. California lawmakers are also devising a cashless system by creating a class of banks specifically for the industry. This temporary law is set to take place by July 1, 2020 with the hopes of easing transactions and lessen cash handling for customers and businesses Read the complete post by Michelle L. Price on ElkoDaily.com here! 

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Top Five Things to Know if You’re Building Your Cannabis Empire Through M&A — CannaLawBlog

May 7th, 2019|Categories: HB Risk Notes|Tags: , , , , , , , |

Cannabis is associated with calm. Joining the industry is anything but.   Hilary Bricken already has nearly a decade of experience in the field of cannabis law. She founded the Canna Law Blog in 2010, which now has several contributors from the Harris Bricken firm and is easily one of the best out there. Her latest post offers insights on companies who wish to build their cannabis business through mergers and acquisitions. In her May 6 post, titled "Top Five Things to Know if You're Building Your Cannabis Empire Through M&A," she writes:  "It’s no secret that multiple state-by-state operators are building their cannabis empires through aggressive mergers and acquisitions. Last year, our cannabis business attorneys closed more than $100 million in cannabis company acquisitions, and that shows no signs of stopping in 2019. Cannabis M&A is not your run-of-the-mill business dealing though, and working from boilerplate, rote M&A documents is hugely dangerous. In addition, diligence is oftentimes like a regulatory spiderweb laden with liabilities that other businesses do not face. In addition, the barriers to entry in the cannabis industry are increasingly high, tedious, and protectionist, which can really torture business deals." Bricken writes that "if you find yourself turning into a larger multi-state operator though acquiring cannabis businesses," there are at least five things you should know. Read on for what she has to [...]

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One Stock for the Coming Marijuana Boom, Says The Motley Fool

April 12th, 2019|Categories: HB Risk Notes|Tags: , , , |

"This legal pot stock could be like buying Amazon for $3.19." "Cannabis legalization is sweeping over North America – 10 states plus Washington, D.C., have all legalized recreational marijuana over the last few years, and full legalization arrived in Canada in October 2018. Legal marijuana is worth an estimated $50 billion for the U.S. today. And since experts have projected the U.S. industry to skyrocket to $80 billion by 2030, it’s time for investors to start paying attention. Because whether or not you’re planning on ingesting any THC, you can’t deny the monumental investing opportunity that a potentially $80 billion industry represents." --Grace Phillips, in an article for The Motley Fool  

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Two Judges Find Florida Medical Marijuana Law Unconstitutional

January 4th, 2019|Categories: HB Risk Notes, HB Tort Notes|Tags: , , |

The Program is 'Absolutely Broken' -- Now What? Edited by Tom Hagy Florida Circuit Judge Karen Gievers just held that the Florida medical marijuana law is unconstitutional. Reporting on the judge's Trulieve decision for the Florida Politics news service, journalist Jim Rosica called it "a rebuke to lawmakers and the Rick Scott Administration" that was "stunning even for" Judge Gievers. "In the spirit of boxing legend Muhammad Ali, known for his pre-fight rhymes, Gievers opined that in Florida 'the medical marijuana system was broken. Now, in the Constitution, the people have spoken.'" Rosica reported that while Gov. Scott is appealing the major marijuana decisions against the state Department of Health, the transition team of Republican Governor-elect Ron DeSantis, including Lt. Gov.-elect  Jeanette Nuñez, has suggested that he will not continue to defend the law in court. Rosica continued: "Gievers, who retires in April, said her decision striking down the law 'includ(ed), but (is) not limited to, replacement of the voter-selected registry plan with an arbitrary, inconsistent licensing scheme … throttling access of qualifying patients to … safe use of medical marijuana from (providers that) the Department has a clear, undisputed duty to register.' In fact, just passing the law was itself unconstitutional, Gievers suggested: 'Voters made clear in 2016 that the Legislature was to have no role in implementing access to and availability [...]

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