June McLaughlin – Organic Farmacy Management, LLC. v. Four Green Fields, LLC

June McLaughlin – Organic Farmacy Management, LLC. v. Four Green Fields, LLC
CANNANNEW REPORT

 June McLaughlin (Md. Ct. Spec. App., July 27, 2021, No. 0760, 2021 WL 3173263) Not Reported in Atl. Rptr. Overview A contract dispute arose between business partners when anticipated cannabis licensing failed to materialize. Organic Farmacy Management (Organic Farmacy) sued Four Green Fields, LLC (Four Green Fields) for allegedly breaching an Agreement for Dispensary Management Services (ADMS). The party’s business relationship deteriorated after cannabis licensing failed to materialize. The claims and crossclaims centered on break of contract and fraud. The Circuit found in favor of Organic Farmacy in part on three contract claims and awarded judgment. The court also found in favor of Organic Farmacy on multiple Four Green Fields cross claims. A ruling in favor of Four Green Fields centered on damages calculation. The fraud claims failed. Organic Farmacy appealed asking the court to review the calculation of damages by the circuit court. Four Green Fields raised additional questions for review primarily regarding the circuit court’s interpretation of contract provisions. Holding No Circuit Court error was found and all rulings below were affirmed. Background In 2014 the state of Maryland legalized medicinal cannabis and established a licensing regime. By 2015 the parties to this action were actively discussing entering a business arrangement to build a medical cannabis business. Organic Farmacy was created as a central management entity by two sisters who previously worked in California in the Cannabis industry and an attorney friend who drafted the ADMS. They also formed Hippocratic Growth which the ADMS outlined would obtain a grower’s license. Four Green Fields was also formed by two sisters, one of whom was married to an attorney who provided legal advice to the company prior to the appeal. They had no cannabis experience but could provide capital. Organic Farmacy applied for grower, processor, and dispensary licenses. The State…

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Source : June McLaughlin – Organic Farmacy Management, LLC. v. Four Green Fields, LLC

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