litigation
Cannabis Litigation
Battle-tested cannabis litigators defending operators, investors, and license holders in regulatory disputes, breach of contract actions, and constitutional challenges.
Cannabis Litigation: Defending What You Have Built
The cannabis industry is uniquely litigation-prone. Regulatory agencies that can revoke a license overnight. Business partners who exit badly. Local governments that ignore their own zoning ordinances. At Hoban Law Group, our litigation team represents cannabis clients who cannot afford to lose.
The Cannabis Litigation Landscape
Cannabis litigation is not conventional business litigation. Federal courts are often unavailable for claims arising from cannabis operations. State courts apply evolving standards to an industry that was illegal everywhere a decade ago. Regulators exercise quasi-judicial power through license revocations and enforcement actions that require a different strategic approach than civil litigation.
Our litigators have appeared before state cannabis regulatory agencies, administrative law judges, and state courts from Colorado to New Jersey. We understand the procedural rules, the political dynamics, and the technical regulatory standards that determine outcomes.
Practice Areas in Cannabis Litigation
Regulatory Defense: License revocations, suspension hearings, show-cause proceedings, and agency enforcement actions. We represent operators at every stage of the regulatory enforcement process.
Licensing Disputes: Challenges to licensing denials, application score disputes, and competitive licensing processes where outcomes are worth tens of millions of dollars.
Contract Disputes: Cannabis joint ventures, management agreements, supply contracts, and real property leases all generate disputes unique to the regulated industry. We have litigated them all.
Investor Disputes: Securities-adjacent claims, LLC operating agreement disputes, and founder conflicts in cannabis companies require sophisticated counsel familiar with both the business realities and the regulatory overlay.
Constitutional Challenges: The Commerce Clause implications of state residency requirements, Dormant Commerce Clause challenges to discriminatory licensing programs, and due process challenges to arbitrary agency action.
Our Approach
We litigate to win, but we also understand that the fastest path to your goal is often not the courthouse. We evaluate every matter for settlement leverage, regulatory resolution, and administrative remedies before recommending court filings — then execute aggressively when litigation is the right answer.
Representative Matters
License Revocation Defense — Colorado MED
Successfully defended licensed cultivator against revocation action following inspection violations. Obtained consent agreement preserving the license with a compliance plan, avoiding the revocation that would have terminated a $12M business.
Competitive Licensing Challenge — New Jersey
Filed successful administrative challenge to scoring error in competitive licensing process, resulting in recalculation of scores and our client receiving a retail license previously awarded to a competitor.
Cannabis Joint Venture Dissolution
Represented majority member in dissolution of cannabis LLC where minority member sought to hold the license hostage. Obtained injunctive relief and negotiated favorable buyout terms within 90 days of engagement.
Representative Matters
Cannabis Receivership: Preserving License Value Through Court-Supervised Restructuring
Navigated a state court receivership for a distressed cannabis operator, preserving active licenses and enabling a credit-bid acquisition that saved 47 jobs.
Delta-8 THC State Ban Challenge: Emergency Injunction Preserving Distribution Rights
Obtained an emergency injunction blocking enforcement of a state administrative rule banning delta-8 THC products, preserving client distribution operations.
Related Insights
Frequently Asked Questions
- Can cannabis businesses sue in federal court?
- Federal courts have generally been hostile to cannabis-related claims because the contracts underlying them involve federally illegal conduct. However, there are exceptions — some federal courts have entertained disputes that do not require enforcing an illegal contract. State courts are typically the appropriate forum for most cannabis business disputes.
- What are the grounds for challenging a cannabis license revocation?
- License revocation challenges typically focus on procedural due process (adequate notice and opportunity to be heard), substantive grounds (whether the stated violation actually occurred and whether revocation is proportionate), and agency authority (whether the agency acted within its statutory power). The specific grounds depend heavily on the state regulatory framework.
- How does attorney-client privilege apply in cannabis litigation?
- Attorney-client privilege fully applies to cannabis litigation, just as in any other legal matter. Communications with your counsel are protected. However, lawyers advising cannabis clients must be careful about the crime-fraud exception, which can apply to advice about circumventing regulations.
Work with Hoban Law Group
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Tell us about your cannabis litigation matter — our team prepares a regulatory briefing before you speak. No cost. No commitment.
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