In Michigan, a judge from the Court of Claims recently dismissed two lawsuits related to a significant marijuana recall in 2021, which involved approximately 64,000 pounds of cannabis products valued at $229 million. This recall, one of the largest in the state's history, affected about 60% of all marijuana products in Michigan.
The issue originated from the Michigan Cannabis Regulatory Agency's (CRA) decision on November 17th, 2021, to recall marijuana tested by Viridis Laboratories between October 10th and November 16th, 2021. Viridis Laboratories, a licensed safety lab, is responsible for ensuring the safety of cannabis products for public consumption. The CRA's action was prompted by discrepancies in testing results for aspergillus, a potentially harmful mold, in cannabis products.
Claire Patterson, MRA Scientific and Legal Section Manager, testified that they observed failures in aspergillus testing in the state's monitoring system, which were subsequently reported as passing by Viridis Laboratories without any remediation by growers. Aspergillus, if detected in cannabis, must be eradicated and the product retested before sale. Further investigations by other licensed labs confirmed the presence of aspergillus in products passed by Viridis, leading the CRA to question the reliability of the lab's results for various marijuana products. The extensive recall caused considerable market disruption and additional costs, as all recalled products needed retesting before sale.
Viridis Laboratories, in response, filed lawsuits against the CRA and several employees, alleging that the recall was motivated by a "vendetta" due to Viridis's substantial market share in lab testing. The company argued that its due process rights were violated as the recall prevented sales without allowing Viridis to contest the allegations.
A previous ruling by a Court of Claims judge partially sided with Viridis, distinguishing between marijuana tested in their Lansing lab, which was the source of the contaminated product, and their Bay City lab. The recall was subsequently revised to exclude products tested in Bay City.
However, the recent dismissals in the Court of Claims signal a significant development, marking the end of most of the related lawsuits. Despite this, the dispute between Viridis and the CRA continues in Michigan's Office of Administrative Hearings and Rules court, with hearings scheduled to resume soon. Additionally, Viridis is pursuing financial compensation through the courts for sales losses and costs incurred due to the recall. One lawsuit remains unresolved in Ingham County Circuit Court.
Viridis's attorney, David R. Russell from Foster Swift Collins & Smith law firm, expressed confidence in revealing the truth through the court process and holding the CRA accountable. CRA spokesman David Harns commented on respecting the judiciary's rulings while the agency continues its regulatory duties.
Furthermore, the CRA has separately accused Viridis of manipulating THC potency results in cannabis products, a claim which Viridis denies and is currently contesting in the state administrative courts. The level of THC in marijuana products is a crucial factor affecting their value, as higher THC levels typically command higher prices due to their increased psychoactive effects.
In Highland Park, Michigan, a recent incident has raised questions and concerns among local officials. City Councilman Khursheed Ash-Shafii expressed disbelief and suspicion over the actions of Nar Cannabis, a Michigan-based marijuana company. Despite a July ruling by a judge invalidating the city's recreational cannabis ordinance, Nar Cannabis proceeded to renovate a vacant building into a dispensary.
This development occurred on Victor Street near Woodward Avenue, where Nar Cannabis renovated the building, adding a new parking lot, signage, and lighting. The dispensary has not yet opened, but company representatives were seen distributing T-shirts during the city's Christmas tree lighting event last month, further fueling speculation.
Ash-Shafii is wary of potential underhanded dealings, questioning the rationale behind investing significant funds into a dispensary unlikely to open without proper authorization. He suspects the existence of a "sinister" background agenda, considering the substantial investment involved in such a venture.
Mayor Glenda McDonald declined to comment on the situation, citing ongoing litigation. Likewise, attempts to reach Nar Cannabis for comment were unsuccessful.
This controversy follows a lawsuit filed in May by Highland Park activist Robert Davis. He alleged that the city's ordinance for zoning cannabis businesses violated the Michigan Zoning and Enabling Act, as it lacked approval from the city's Planning Commission. Davis suggested that the ordinance was designed to benefit donors owning property in the designated zones. Wayne County Circuit Judge Susan Hubbard concurred with this assessment, leading to the ordinance's nullification in July.
The Michigan Cannabis Regulatory Agency has not yet approved a license for the disputed dispensary. Consequently, without a valid ordinance, dispensaries are not permitted to operate in Highland Park.
Davis suspects corrupt interactions between city officials and the building's owner, given the ongoing development of the dispensary despite legal prohibitions. He has communicated concerns to the judge and city attorney, urging legal action if the city attempts to authorize the dispensary's operation.
The city's attorney, Anthony Chubb, assured Davis that Highland Park had not sanctioned the dispensary's opening and would take legal steps against Nar Cannabis if they tried to open.
This situation adds to the controversy surrounding Highland Park's cannabis ordinance. Last year, efforts to amend the ordinance to address potential corruption were made. The initial ordinance granted the clerk sole authority to issue licenses, a responsibility typically assigned to a board for accountability. Moreover, the ordinance's zoning included areas beneficial to specific city donors, raising further ethical questions.
Amidst these developments, Ash-Shafii has taken a firm stance against discussing new ordinances until illegal grow operations in the city are addressed. He alleges that police inaction has allowed such operations to thrive in abandoned buildings. Ash-Shafii insists on a public referendum for any future ordinance concerning cannabis in Highland Park.
Two young adults found themselves in custody after a peculiar incident in a bustling Saginaw Township intersection on Sunday evening.
At approximately 7:20 p.m. on January 7th, Saginaw Township Police were summoned to the crossroads of North Center Road and Weiss Street. A concerned citizen had dialed 911 upon noticing a 2006 Chevrolet Malibu stationary in the intersection, with its two occupants appearing to be asleep, reported Police Sergeant Chad Brooks.
Upon arrival, officers observed through the windows of the Malibu that the two men inside were indeed sleeping. Notably, the car was in a running state, positioned in drive, but was stationary due to the driver's foot on the brake pedal.
The police attempted to rouse the individuals by knocking on the window. This action woke the sleepy duo, who then attempted to drive off. However, quick intervention by an officer, who reached inside to turn off the ignition and retrieve the keys, prevented their departure.
Sergeant Brooks noted that as the men were being removed from the vehicle, a strong scent of marijuana emanated from the car.
In response to the situation, the Michigan State Police Impaired Driving Action Team (IMPACT) also arrived at the scene. The driver of the Malibu was subsequently arrested for operating a motor vehicle under the influence. The passenger, meanwhile, was detained due to an existing arrest warrant.
Early on Monday, January 8, two marijuana facilities in Van Buren County were the targets of break-ins, prompting an investigation by local law enforcement. The incidents occurred in quick succession, with the first report coming at approximately 3:19 a.m. at Higher Breed, located at 77 E. Main Street in Columbia Township. The response from Van Buren County sheriff's deputies was swift, arriving at the scene within ten minutes. They discovered that, thanks to effective interior security measures, the burglars were unable to access rooms containing marijuana products, and consequently, nothing was stolen from Higher Breed.
Almost concurrently, at around 3:39 a.m., a break-in occurred at Canna 43, situated on County Road 653 in Almena Township. Here, the scenario was different. Three individuals successfully entered the building and managed to escape with an undisclosed quantity of marijuana products before the arrival of the police.
The sheriff's deputies, based on the preliminary evidence, suspect that the same trio was involved in both break-ins. The suspects were described as wearing hoodies, hats, gloves, and masks, concealing their identities effectively. Their vehicle was identified as a black, late-model Jeep Compass with a Michigan license plate that could not be discerned.
The Michigan State Police are assisting the Van Buren County Sheriff's Office in this ongoing investigation. The authorities have urged anyone with relevant information to come forward and assist in the apprehension of the suspects. Members of the public can contact the investigators at 269-657-3101, Crime Stoppers at 800-342-7867, or Silent Observer at 269-343-2100. Additionally, anonymous crime tips can be sent to the Van Buren County Sheriff's Office via text message. To do this, text "CRIMES" (274637) with the keyword VBCTIP from a mobile phone.
In a recent ruling by the Sixth Circuit, Local Roots, a cannabis company, was denied the opportunity to challenge a settlement between the City of Perry, Michigan, and its competitor, Liberty Wellness. This decision upholds the allowance of more than one dispensary in Perry, a point of contention for Local Roots.
The case unfolded as Local Roots, which had secured a conditional marijuana retailer license in late 2022 under the assumption of being Perry's sole dispensary, attempted to intervene in a lawsuit filed by Liberty Wellness against the city. Liberty Wellness's owner, Jonathan Moses, had sued the city in October 2022, arguing that the city's decision to issue only one license was against the voters' preference for eight licenses. Despite Local Roots filing a motion to intervene, the trial judge concluded the case with prejudice before addressing their motion.
During oral arguments in October, the skepticism of the circuit judges towards Local Roots' position was evident. U.S. Circuit Judge John B. Nalbandian, who later authored the panel's opinion, remarked on the unusual nature of Local Roots' attempt to keep the lawsuit active despite both primary parties seeking its conclusion.
The Sixth Circuit panel supported the lower court's decision to endorse the settlement between Liberty Wellness and the City of Perry, effectively dismissing the action with prejudice. This meant Local Roots could not pursue claims within this lawsuit to maintain its status as the only cannabis retailer in Perry.
The panel further clarified that Local Roots' motion to intervene was moot due to the immediate agreement between Liberty Wellness and the city to dismiss the case, leaving no room for intervention. Additionally, the panel noted that all parties in a litigation must typically agree to a settlement before dismissal, but this doesn't apply until a motion to intervene is granted, which in this case, it wasn't.
President Joe Biden's recent wave of pardons, which included thousands of individuals with federal convictions for personal marijuana use, marks a significant step in changing the landscape for many Michigan residents with similar convictions. Announced last Friday, these pardons are seen as a groundbreaking move in the ongoing shift in how marijuana-related offenses are viewed at the federal level.
Barton Morris, a prominent attorney and member of the Cannabis Council in Troy, Michigan, lauded the president's decision. He emphasized the uniqueness of Biden's consecutive annual pardons in this area, a first in U.S. presidential history. Morris pointed out the profound impact of such convictions on individuals, stating, "Nobody should be in prison or serving time or even suffering any penalties whatsoever for marijuana-related convictions."
The implications for Michiganders with marijuana convictions are particularly significant. Morris noted the profound negative impact of felony convictions on individuals' lives, including hindering employment opportunities and obtaining licenses in various industries. Despite the legalization of personal marijuana use in Michigan, Morris highlighted that numerous state residents are still serving sentences for actions that are no longer considered criminal.
Morris expressed hope that the federal pardons will inspire Michigan Governor Gretchen Whitmer and other state officials to follow suit. He sees this as an opportunity for state leaders to demonstrate courage and justice in their policy decisions, reflecting the changing attitudes towards marijuana use.
Michigan is among the 24 states that have legalized recreational marijuana use. The recent presidential pardons, according to Morris, could not only influence state-level decisions but also potentially pave the way for more states to join the list of those where recreational marijuana use is legal.
Helpful Links Categories Recent News