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California Small Claims Court Orders Dispensary to Pay Pot Grower
Return To OnlinePot's
Legal Section Main Page
A
press release by Chris Van Hook, founder of Clean
Green, a cannabis certifying company, announces that a small claims court
judge has ordered a dispensary to recompense a grower for cannabis. This
could have far reaching consequences.
A recent decision by a Small
Claims judge in the Sacramento County Superior Court [case no. 11sc01666]
will have positive and far-reaching impacts on the ability of cannabis
growers to seek agreed-upon reimbursement from collectives for their
medicine, says California
medical cannabis compliance lawyer Chris Van Hook, founder of the
Clean Green Certified medical
marijuana inspection program.
The plaintiff in the case was a
grower of Clean Green Certified medical cannabis, David Nadeau, who brought
his medicine to a collective in the Sacramento area. There he was given a
collective/vendor agreement with the weights of his medicine being donated, as
well as the reimbursement value and a date (two weeks in the future) by which
the reimbursement was to occur. There was no dispute as to the amounts owed or
the due date of the compensation, but after more than 30 days without
reimbursement, and with the collective closing shop and moving locations, the
plaintiff thought the time had come to file in the Sacramento Small Claims
Division for breach of contract.
“The grower had provided
medicine to the collective in good faith, and it had, in fact, been
distributed to collective members and reimbursement had been received by the
dispensary,” notes Van Hook. “It boiled down to an old-fashioned breach of
contract case, not uncommon in all types of agricultural crop transactions.”
Judge John O’Donnell ruled in
favor of the plaintiff, ordering the defendant to pay a total amount of
$6,345.24, which included the principal amount plus costs. Judge O’Donnell
allowed plaintiff to collect his money not only from the collective, but also
the individual who he had the contract with and all business entities the
defendant was affiliated with. After a 30-day appeal deadline had passed, the
plaintiff was able to pursue payment.
Van Hook says growers facing
similar nonpayment situations should consider pursuing small claims
litigation. “Small claims court is a good choice, as you do not need to
retain the services of an attorney,” he notes, adding, “but growers should
keep in mind that the maximum amount of damages that can be brought in a small
claims court is $7,500.00.”
“Individuals can look up
‘California Small Claims Court’ on the Internet, and they will find
instructions as to how to file a small claims complaint. It is really very
easy; however, good records should be assembled so that you can make your case
clear to the court,” Van Hook suggests.
He advises other growers
considering taking similar action to remember to make copies and keep records.
“Know the material, because the judge will ask you questions, and you must
be able to answer.”
“This case will have positive
repercussions throughout the modern medical cannabis framework here in
California,” notes Van Hook, pointing out that the collective model of fair
and reasonable compensation for medical cannabis can only work if both parties
honor the agreement. “This case has greater importance statewide as it was
handed down in Sacramento, allowing unpaid growers/members to cite this case
in the future.”
For more information about the
Clean Green Certified program, call Chris Van Hook at (707)
218-6979
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