Legal Battle Ensues as Cannabis Firm Alleges Non-Payment by Michigan Clinic

March 2nd, 2024 Legal & Crime
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A cannabis-focused laboratory and consulting company has filed a lawsuit against a Michigan-based clinic, alleging the clinic has failed to pay over $100,000 in fees for services rendered. The legal action, initiated in a Colorado federal court, centers on a contract between North Star Scientific Solutions LLC, the plaintiff, and Michigan Health Clinics PC, the defendant.

According to the filed complaint, Michigan Health Clinics engaged North Star Scientific Solutions to assist in creating a comprehensive project plan aimed at securing a cannabis testing license from the state of Michigan. The clinic was successful in obtaining this license in July. However, it is reported that it ceased payments to North Star several months prior, neglecting its financial obligations under the agreement signed in June 2021 and its subsequent amendments.

As of the lawsuit's filing, North Star claims the clinic owes a total of $101,441.22, which includes the principal amount for services provided and a 5% late fee, as stipulated in their contract. The consulting firm asserts that despite fulfilling its part of the agreement, leading to the clinic acquiring its cannabis testing license, it has not received compensation for its work.

The dispute reportedly began to escalate toward the end of 2022 when the clinic's payments became sporadic, culminating in a final payment of $50,000 in February 2023. This payment was intended to settle months of overdue fees. Despite assurances from the clinic that payments would stabilize once the license was secured, North Star alleges that no further payments were made.

In an attempt to resolve the issue, North Star engaged in communication with David Stockman, identified as an agent for the clinic, in October. The firm expressed its dissatisfaction with the clinic's failure to meet its financial commitments, including a specific instance where the clinic did not pay an agreed-upon sum of $25,000. Despite these efforts and a demand letter sent by North Star's legal representation, the Vethan Law Firm, in December, claiming $97,000 was owed, the clinic has not made any payments or responded to the demands.

As of now, the clinic has not provided a response to inquiries regarding the lawsuit. The legal representation for Michigan Health Clinics in this matter has not been disclosed. North Star is represented by Charles M.R. Vethan of the Vethan Law Firm in this ongoing legal dispute, officially titled North Star Scientific Solutions LLC v. Michigan Health Clinics PC, case number 1:24-cv-00541, in the U.S. District Court for the District of Colorado.

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