Higher Law: Recreational Pot in Cleveland? | Boies Schiller Reps Eaze in TCPA Case | Plus: Our In the Weeds Roundup
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Welcome back to Higher Law, our weekly briefing on all things cannabis. I'm Cheryl Miller, reporting for Law.com from Sacramento. Hope your Fourth of July was a blast. This week, we're looking at Cleveland's interest in a recreational marijuana market, even though it may be years away. Plus, Eaze Solutions, represented by Boies Schiller Flexner, moves to dismiss a proposed class action alleging it sent thousands of unwanted texts. And scroll down to see Who Got the Work. Got a tip or story idea? Feedback? Drop me a line at cmiller@alm.com or call 916-448-2935. Follow me on Twitter at @capitalaccounts.
Recreational Pot in the Rock 'n Roll Capital?
Cleveland has said goodbye to LeBron James (again) and is preparing to say hello … to recreational marijuana. The state of Ohio is still months away—perhaps many months away—from launching its medical marijuana market. But Cleveland city leaders are already looking ahead to a time when no one needs a medical condition to legally light up. "We believe it's time for us to start having that discussion and seeing if it might be the right thing to do in the city of Cleveland," City Councilman Blaine Griffin told Cleveland news station WEWS. I checked in with Thomas Haren, an associate with Frantz Ward's marijuana law and policy practice, to find out what's going on in The Land. "There are a lot folks that are looking forward to what's to come in the market," Haren told me. Backing up for a moment, Ohio is supposed to have an operational medical marijuana market by September. That's probably not going to happen because of delays—that other states can relate to—in getting growers, processors, labs and retailers licensed and running. Haren says legal medicinal pot probably won't appear on shelves until late this year or early 2019. And if Cleveland wants a recreational market, the city needs the Ohio Legislature or state voters to act. The city can't legalize marijuana unilaterally. It can, however, form a working group to study zoning, law enforcement concerns, equal opportunity and other issues that might pop up with an adult-use market. "This is a working group in the truest sense of the word," Haren says. "It is an attempt by the city to say this may be coming, what does it mean for Cleveland?" So why not at least think about it? Recreational legalization has been a natural progression for some states with medical marijuana programs. And while Ohio has a political red-state streak, Haren notes that it was one of the first states to decriminalize cannabis, way back in 1975. Possession of up to 100 grams of marijuana is a minor misdemeanor punishable by a $150 fine.
Eaze Says TCPA Dispute Must Go to Arbitration
Attorneys for Eaze Solutions Inc., the online marijuana delivery platform, have moved to compel arbitration and dismiss a putative class action that alleges Telephone Consumer Protection Act violations. Boies Schiller Flexner attorneys Albert Giang, Michael Roth and Fiona Tang argue that proposed class representative Farrah Williams agreed to arbitrate any disputes and to receive communications from Eaze when she signed up for the app in Sept. 2017. Williams's suit, filed in May, accuses Eaze of sending unsolicited text messages to her and "thousands" of other recipients without their written permission. The complaint included screenshots of tweets from people suggesting they were not Eaze customers but were still receiving the company's text-ads. Violations of the TCPA are subject to statutory damages of up to $1,500 per text or call. Williams is represented by David Hall and Frank Hedin of Hedin Hall. The plaintiff's brief in opposition to Eaze's motion to compel is due July 20. >>> More reading: Here's a Q&A my colleague Caroline Spiezio did with Eaze chief legal officer Michael Brandis in December.
Who Got the Work
New England firm Barclay Damon has launched a marijuana practice, which will be led by Syracuse-based counsel Sara Payne, a member of the New York State Bar Association Committee on Cannabis Law. Barclay Damon has approximately 10 clients with business interests in the marijuana industry, according to the firm. "We are delighted to be an integral part of our cannabis clients’ operations and growth as they navigate this new regulatory terrain and emerging business environment," John Langan, Barclay Damon’s managing partner, said in a statement. Barclay Damon has offices in New York, Massachusetts, New Jersey, Washington, D.C. and Toronto, cities and states with emerging marijuana markets.
In the Weeds...
>> A Florida appeals court refuses to allow smokable medical marijuana as a legal fight continues to play out. Here's a link to the ruling. [Daily Business Review] >> Vermont last week became the ninth state to legalize recreational marijuana use. There's no recreational market but adults can legally possess up to one ounce of marijuana plus two mature and four immature plants per residence. Vermont has an existing program for registered medical marijuana users and licensed medical dispensaries. [Burlington Free Press] >> The U.S. attorney for Massachusetts says he's not zeroing in on state-legal marijuana operations. "Opioids is the priority of my office," Andrew Lelling told WGBH's Morning Edition. "So if people are fearing a sudden widespread crackdown on purchase and use of small amounts of marijuana, they will not see that from my office." Lelling's remarks echo those of other federal prosecutors who have said state-legal operations won't be immunized from federal scrutiny but won't be targets either. [WGBH] >> Former White House deputy counsel Uttam Dhillon has been named acting administrator of the U.S. Drug Enforcement Administration. Don't expect any push to change marijuana's Schedule 1 drug classification. But Dhillon and the DEA could play a role in the development and classification of cannabidiol-based pharmaceuticals. [The Hill] >> California is weighing a new professional rule that would protect lawyers with cannabis clients. The state bar and the state Supreme Court are looking at new ethics language to specifically allow lawyers to "assist a client in drafting, interpreting, administering, or complying with California laws … even if the client’s actions might violate the conflicting federal or tribal law." [The Recorder] >> Medical marijuana may be legal in 30 states but that doesn't mean it's welcome on college campuses. Colleges and universities risk losing federal funding if they allow marijuana use on their grounds, Griesing Law's Melissa Hazell Davis and Fara Cohen write. The University of California bans pot possession or use on its campuses. Michigan State University tells registered medical marijuana users to live off campus. [The Legal Intelligencer] >> New York's financial regulators say they won't sanction banks that serve medical marijuana and hemp businesses. Lt. Gov. Kathy Hochul said the state is " cutting the red tape and removing regulatory barriers to support businesses in the legal cannabis industry." But will that ease banks' fear of federal regulators? [Times Union]
