This post discusses the use of the federal “illegality defense” in connection with third-party subpoenas in litigation. Let’s start with a review of the illegality defense. Cannabis litigators, investors, and companies who decide to file a lawsuit arising out of a business transaction likely are familiar with the “illegality defense.” An initial question is choosing
Last year, I wrote a post entitled “Cannabis Leases: Eight Important Tenant Considerations“. The post outlined eight of the more important considerations for tenants entering into cannabis leases. Today, I want to focus on some of the top considerations for landlords in leasing to cannabis tenants. 1. Compliance with Mortgages Landlords that do not outright
Although Americans, and citizens of certain states in particular, have a reputation as a litigious bunch, the reality is that very few civil lawsuits actually go to trial. The vast majority of cases—perhaps more than 90%—end in settlement. This is certainly true in my practice and for most attorneys I know who specialize in business
It’s been a little while since we’ve talked about patent protection on the blog, but a recent consultation reminded me a primer on the different types of patents potentially available could be beneficial. Here in the United States, there are three broad categories of patents, all of which are governed by the Patent Act (or
Is it legal to sell smokable hemp? Our cannabis and hemp CBD attorneys are asked this question frequently. Without fail, their answer is it that depends on where you want to sell smokable hemp. Because state laws, rules, and regulations are changing frequently, sometimes in connection with litigation, we research and update the entries for each
Recently the SEC updated its rules to simplify the patchwork of regulations to help companies in fundraising mode. This matters to cannabis companies of all types, especially those that want to utilize the available federal exemptions in their securities offerings. In the SEC’s own words, “These amendments will promote capital formation and expand investment opportunities
I have written in the past that cannabis companies of all stripes (whether involved in marijuana or hemp) that are in fundraising mode need to know when they are offering securities for many different compliance-related reasons, the biggest of which is to avoid jail time for committing securities fraud. According to the U.S. Securities Act
A few days ago, I wrote a post on cannabis investing and the concept of debt v. equity. I noted that it’s very common to see lenders ask for personal guarantees when providing loans to cannabis businesses. Guaranty agreements are a hugely important type of contract that deserve their own post. Below, I will get
In a word, yes. A lawsuit recently filed in Jackson County, Oregon by a tenant alleges that his landlord has wrongfully evicted him from a warehouse containing 36,000 pounds of hemp, which the plaintiff alleges will be worth $1.5 million when processed, and 500 pounds of trimmed flower with a market value of $175,000. (Marks
A few weeks back, the Cannabis Law Institute invited me to discuss contract drafting for cannabis deals. A focal point for the panel was whether courts are willing to enforce cannabis contracts. The last time I had really looked at that issue was early 2019, when I wrote: Cannabis Dispute? Courts are Open. As the
