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Home»Legal & Policy»New York City Sues Unlicensed Cannabis Dispensaries and Landlords: Case Update
Legal & Policy

New York City Sues Unlicensed Cannabis Dispensaries and Landlords: Case Update

April 17, 2023No Comments3 Mins Read
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As we mentioned right here, in February 2023, New York Metropolis started submitting lawsuits in opposition to the landlords and tenants of unlicensed hashish dispensaries. One litigation that stands out is entitled The Metropolis of New York v. The Land and Constructing Referred to as 14 First Avenue, et al., Index No: 450378/2023 (the “Land Constructing Motion”).  Within the Land Constructing Motion, the Metropolis alleges that undercover, underage law enforcement officials purchased marijuana at every of the retailers on three events in December and people premises didn’t have a CAURD license to promote marijuana.

In every submitting, the Metropolis calls for monetary penalties from each the landlords and retailer house owners. Within the Land Constructing Motion, the Metropolis is moreover searching for to completely cease the topic premises situated at 14 Fist Avenue, Floor Flooring (the “Premises”) from being utilized to promote hashish. The Metropolis is counting on the identical public nuisance legal guidelines that normally are used when landlord refuse or fail to evict tenants that function brothels and drug dens.

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  • The Land Constructing Motion
  • The interim order
    • What subsequent on this unlicensed hashish dispensary litigation?

The Land Constructing Motion

For the reason that Land Constructing Motion was filed, the Metropolis filed an emergency order to point out trigger searching for a preliminary injunction and short-term restraining orders and a short lived closing order in opposition to the defendants on this case (the “Movement”). In assist of its Movement, the Metropolis alleges that, pursuant to Part 7-707 of the New York Metropolis Administrative Code, the defendants ought to be enjoined and restrained from conducting, sustaining, working or allowing a public nuisance — unlicensed hashish gross sales — contained in the Premises.

The interim order

On February 27, 2023, the Court docket issued an interim order that, amongst different issues:

(a) prohibits the tenants from conducting, sustaining, working or allowing the Premises from getting used, occupied or operated for the sale of hashish with out the requisite license till a dedication of the Movement;

(b) prohibits the tenants from utilizing or occupying the Premises for any use or enterprise operations till a dedication of the Movement;

(c) grants the tenants and the owner restricted entry to the Premises to solely conducting inspections of the Premises, make repairs and/or modifications, or the elimination of property on the Premises and pending additional Order of this Court docket shall be allowed reopen on March 23, 2023; and

(d) Orders the New York Metropolis Police Division (the “NYPD”) to take all affordable steps essential to effectuate this Order, which incorporates placement of no a couple of (1) partial closing order discover and one (1) short-term restraining order discover.

What subsequent on this unlicensed hashish dispensary litigation?

The Movement was scheduled to be heard on April 12, 2023. Nonetheless, neither defendant filed any opposition to the Movement. As such, the Movement was adjourned once more by the Court docket to April 26, 2023. Throughout the further adjournment interval, the Court docket will proceed to implement the injunction and forestall the Premises from being utilized in any means apart from to conduct repairs or examine the Premises.

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