Fraud Claims Over Pot Cultivation Deal Sent To Arbitration

Law360 (January 30, 2020, 9:49 PM EST) -- A farmer who says cannabis business Vertical Companies defrauded her in a cultivation deal saw her claims sent to arbitration, as a California federal judge said their agreement clearly says all disputes must be decided by an arbitrator.

U.S. District Judge André Birotte Jr. said in Tuesday's order that while Francine Shulman does not dispute the arbitration provision in her cultivation agreement with the company, she claimed Vertical, its founder and CEO Todd Kaplan and various affiliates waived their right to arbitration under the California Arbitration Act by filing a different forcible entry and detainer suit in state court before demanding...

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