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Recent Federal Court Victories For Bay Area Dispensaries Have a Ripple Effect

2/11/2015

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In 2011, the U.S. Attorney’s office embarked on a miscalculated course of legal action intended to force closure of medical cannabis dispensaries operating legally under California state law.  As part of a now ill-fated legal strategy lead by Melinda Haag of the U.S. Attorney’s office for the Northern District of CA, Haag filed civil forfeiture actions against the landlords of Bay Area dispensaries including Berkeley Patients Group, Shambhala Healing Center, and Harborside Health Center seeking to “quietly” force closure of the dispensaries through enforcement of civil rather than criminal laws. 

As part of this strategy, the U.S. Attorney’s office began to issue letters to landlords leasing to dispensary operators with threats of property seizure and the tactic often scared landlords leasing to dispensaries into shuttering their doors.  Rather than close their doors, Shambhala Healing Center, Harborside Health Center, and Berkeley Patients Group have vigorously defended against the civil forfeiture actions despite federal laws criminalizing cannabis. In fact, both the City of Berkeley and the City of Oakland have attempted to join the federal suits in support of the dispensaries, and despite strong political and community opposition, Haag’s office has continued to aggressively pursue the civil forfeiture cases.

In December 2014, the passage of Obama’s spending bill prohibited use of federal funds by the DOJ to crack down on cannabis activities in states that have adopted cannabis laws.  Last month, a new policy issued by U.S. Attorney General Eric Holder prevents federal agencies from seizing assets without a warrant as Haag’s office is attempting to do in the civil forfeiture cases at issue here.   As more states turn to legalization, the tides are shifting at a federal level, and the federal judiciary has responded by issuing several recent and important pro-cannabis decisions in the dispensary forfeiture cases. 

First, in December 2014, U.S. District Court Judge Susan Illston ruled that Shambhala’s lease was legal, and tossed Haag’s forfeiture complaint out as a moot given a $150,000 payment made to the U.S. Attorney’s office by the Shambhala’s landlord to settle the case.  Second, on February 3, 2015, a conservative 3 panel judge for the 9th Circuit Court of Appeals chastised Haag’s office for continuing to wage a losing battle against the dispensaries.  The 9th Circuit panel indicated that it was a rouge battle improperly pursued by Haag in direct violation of the passage of the federal spending bill defunding prosecution of state-protected cannabis activities and Holder’s recent policy shift preventing warrantless seizures.  Judge Richard Tallman even suggested that Obama ask for Haag’s resignation for continuing to pursue an unwarranted course of action against Harborside’s landlord.  Lastly, on February 6, 2015, in another key victory in federal court, Judge Jon S. Tigar of the 9th Circuit Court of Appeals issued an order allowing Berkeley Patients Group to continue to operate while the court considers the pending civil forfeiture action.   Given the recent funding and policy shifts at a federal level, perhaps Haag’s office should abandon its sinking ship of meritless lawsuits against state-protected cannabis activities and devote resources to prosecuting actual criminals, not patients seeking safe access to medicine.

Recent Spending Bill:  http://www.businessinsider.com/the-new-spending-bill-just-ended-the-federal-war-on-legalized-weed-2014-12

Holder’s Policy to Reform Forfeiture Laws:  http://www.huffingtonpost.com/2015/01/16/holder-asset-forfeiture_n_6488816.html

Shambhala Healing Center:  http://mmjbusinessdaily.com/dispensary-notches-big-win-in-important-court-battle-with-feds/

Harborside Health Center:  http://www.sfgate.com/bayarea/article/Court-questions-federal-action-against-Oakland-6059956.php?cmpid=email-mobile

Berkeley Patients Group:  http://www.huffingtonpost.com/2015/02/10/berkeley-patients-group_n_6648268.html

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EUREKA's moratorium on dispensary permits expires

11/22/2013

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If you are looking to open a medical cannabis dispensary in California - don't delay as under a recent California decision, City of Riverside v. Inland Empire Patients, et al, cities now have the legal authority to completely ban dispensaries within their borders.  City of Eureka's moratorium recently expired with 2 dispensary permits now available.  Contact CBD Professionals (www.cbdpros.com) to find out which CA cities are accepting permits for dispensaries.  For a full copy of the Riverside opinion, click here:
http://scocal.stanford.edu/opinion/city-riverside-v-inland-empire-patients-etc-34210
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CBD Attorney Sues City of Vallejo for Unlawful Dispensary Raid

11/15/2013

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The City of Vallejo is being sued by Greenwell Collective, a medical cannabis dispensary that was located in the downtown area and raided by law enforcement in February 2012.   Matt Shotwell, Greenwell’s Director, is suing on a number of claims including violation of his civil rights because the City of Vallejo targeted Greenwell for closure due to his political activism in support of a local measure to tax medical cannabis. In an effort to thwart public support for safe distribution of medical cannabis in Vallejo, the City timed the February 2012 raids shortly after a 10% tax on sales of medical cannabis was overwhelmingly passed by the citizens of Vallejo.  In his complaint, Shotwell alleges that the city “selectively targeted the most outspoken” dispensary directors as some of Vallejo’s quieter dispensaries were allowed to remain open with business as usual.   As
a further waste of public resources, the DA proceeded to criminally charge the dispensary directors raided including Shotwell with the very Health & Safety Code violations that are exempted under California's medical cannabis laws.  The City’s tactic to force closure of the dispensaries has failed thus far, as no judge has found that any of the dispensaries raided were in violation of state law, and therefore any associated criminal charges have been dropped.  CBD Attorney Thurston is serving as co-counsel with civil rights attorneys Dan Siegel and Kevin Brunner in bringing this action against the City to force the City to answer for its wrongful actions against legitimate, state-authorized medical cannabis dispensaries operating within its borders.  Greenwell is the second dispensary to sue after a series of medical cannabis dispensary raids in Vallejo last year.  For the full article click on the link:
http://www.timesheraldonline.com/news/ci_24489215/medical-marijuana-advocate-sues-vallejo?IADID=Search-www.timesheraldonline.com-www.timesheraldonline.com

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    CANNABIS PATIENT RESOURCE

    CPR is a blog hosted by CBD Professionals.  CPR's aim is to help qualified medical cannabis patients keep abreast of the latest information on California's rapidly changing laws impacting patients' legal rights.   

    Blog postings are for informational purposes only and do not constitute legal advice or create an attorney-client relationship.  To consult with a CBD Law Network Attorney, contact info@cbdpros.com or (510) 985-9CBD.

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