The Scuttlebutt Featuring Articles About Cannabis Litigation A Primer On Subpoenas, Corporate Governance Compliance and More

In the days of the Armada, a fleet of warships, the scuttlebutt was the rumor or gossip that would spread throughout the ship. Today, Armada Law Corp presents The Scuttlebutt, a daily summery of news articles that people within the cannabis, hemp and plant medicine industries are chatting about along with links to the full articles.

In today’s news:

#californiacannabis – “The League of California Cities and California State Association of Counties filed an amicus brief in the case on Monday, urging the Ninth Circuit to affirm a California federal judge’s ruling that abstained from and paused a case that alleges Sacramento violates the dormant commerce clause because it bars non-residents from being licensed under an equity program intended to benefit communities negatively impacted by the war on drugs.
For the Ninth Circuit to weigh in and find the dormant commerce clause applies to cannabis — which is illegal at the federal level — would likely open a large can of worms that the district court was wise to avoid by abstaining, the municipalities said.”

Don’t Ignore ‘Elephant’ In Pot License Suit, 9th Circ. Told:

#cannabisindustry – “Each municipality is its own kingdom, with its own rules, processes, vernacular and policies. Without working through those ordinances and gaining signoff from those host-municipalities, transitioning a business to a new operator is impossible, and landlords/mortgagees risk killing the location’s future ability to operate in the process. Some factors include:
  • Buffer restrictions
  • Grandfathered special uses
  • The next in line in a competitive application process

For failed operators with multiple locations, any en masse sale to a new suitor requires the synchronization of these individualized processes and/or a multi-closing deal structure. Consider the job presently faced by the Green Peak receiver, who is now tasked with trying to portfolio or individually sell at least 26 licensed locations in different municipalities, each of which will impose its own process and opinions as to the operations within its borders. The phrase “herding cats” comes to mind.”

#cannabislaw – “There are generally three types of subpoenas:
  1. The deposition subpoena that asks for a witness to sit for a deposition (a “testimony only” subpoena)
  2. The deposition subpoena that asks for a production of documents (a “business records” subpoena); or
  3. The deposition subpoena that asks for both (a “records and testimony” subpoena)

If the subpoena is demanding a witness to appear, it should set forth the time and place for doing so. It should also include a description of topics on which the questioning will focus on “with reasonable particularity.” If the subpoena is demanding documents, it should also outline the types of documents that is expected to be produced by providing “specific descriptions” of each.”

#cannabislaw – “”a strong corporate governance program is one in which a cannabis business (1) adopts procedures for running the cannabis business, and then – and this is the hard part- (2) actually follows them.””

#cannabislaw – “An electrical worker suing the Long Island Rail Road and Metropolitan Transportation Authority is urging a New York federal court not to throw out his claims that he was wrongfully fired after he tested positive for “marijuana metabolites,” arguing that the drug test was an illegal search under the Fourth Amendment.
In a memorandum filed Tuesday in the U.S. District Court for the Eastern District of New York, Ronald Dolginko of North Babylon, New York, said that neither he nor his union, the International Brotherhood of Electrical Workers Local 589, agreed to a policy that he must submit to a drug test before returning to work after medical leave, but that LIRR unilaterally imposed it.”

NY Railroad Worker Says Drug Test Was Unconstitutional:


Get Legal Consultation

Armada Law Corp: Excellence, Integrity, Personalized Care – Your trusted legal partner for success.