In Pot Ownership Fights, Illegality Is Still A Problem To Judges

Law360 (December 9, 2019, 3:05 PM EST) -- As disputes over ownership in pot companies begin to spill into federal court, the parties who bring the actions are running into a problem: Judges can't mandate the sale of a federally illegal enterprise.

The issue is relatively novel, but it's driving cannabis attorneys to bolster purchase contracts and partnership agreements with provisions to ensure that an ownership challenge doesn't run aground on the issue of federal illegality.

A pair of recent cases in Washington federal court have shone a spotlight on the obstacles jilted business partners can encounter in court when an opposing party invokes federal drug policy as a...

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