Cannabis Contract Woes in Washington State

    Authored By June McLaughlin   June writes   Recent decisions in the United States District Court for the Western District of Washington, point to troubling developments in the treatment of cannabis related contract disputes that find themselves in federal court. While the main case discussed by this article does not create precedent, it does reveal the thinking of some federal judges in a jurisdiction with long-time legal cannabis at the state level. It is unclear what this means for those drafting contracts and those currently operating under contracts related to cannabis business. This article unpacks some of the initial issues in an effort to uncover potential takeaways.   At the end of October of this year, in the United States District Court for the Western District of Washington, federal Judge Marsha Pechman, issued an Order to Show Cause in the case of Left Coast Ventures, Inc. v. Bill’s Nursery, Inc. (case no. 2:19-cv-01297) asking the parties to show why the court should not dismiss the action. The case is a contract dispute between two cannabis companies. The Order cites to a similar order issued in August 2019 by another judge in the same district. (citing Polk v. Gontmakher,…

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