New report: Legal firms chasing demand for marijuana-related advice

herb-2915337_640Pot is hot in the legal field. According to a new report, law firms are scrambling to keep up with demand from clients seeking advice regarding marijuana legalization.

In a special report, The Recorder at Law.com offers a wide-ranging update.

“There is just too much business to be had for these firms to ignore this,” Law.com reporter Cheryl Miller says in a 15-minute “Legal Speak” interview. “We have 33 states and the District of Columbia now where some form of cannabis is legal, and there’s such a demand for legal guidance from all these businesses that are sprouting up in response.”

Miller says clients dealing in areas such as real estate and employment law need legal advice to keep up with the rapidly changing marijuana market.

The federal-state conflict remains a major issue, she cautions. Banking regulation or cross-border travel particularly into Canada are examples of problem areas.

But firms such as Quinn Emanuel Urquhart & Sullivan and Bradley Arant Boult Cummings are encountering high demand.

Miller says, “These lawyers are finding that it’s a natural outgrowth of strong employment practice, a strong real estate practice or a strong transactions practice or a strong litigation practice, and they’re having their existing clients come to them, and that leads to more business down the line.”

California marijuana retailer sued by former chief financial officer

Image: MedMen Chief Executive Adam Bierman as reported by Los Angeles Times. Photo Credit:  Ricardo DeAratanha / Los Angeles Times.

Image: MedMen Chief Executive Adam Bierman as reported by Los Angeles Times. Photo Credit: Ricardo DeAratanha / Los Angeles Times.

MedMen, a major marijuana industry operator in California with 1,243 employees, faces a lawsuit by its former chief financial officer, the L.A. Times reports.

“As California’s marijuana industry works to project an image of mainstream respectability, one of its best-known companies has come under attack by a former insider,” the newspaper reports.

MedMen Enterprises Inc. is trying to bring pot sales into the mainstream by providing sleek, comfortable stores in high-profile locations, and its strategy often is said to emulate the Apple store model.

The marijuana retailer is being sued by its former chief financial officer, James Parker, “who alleges the Culver City firm forced him out for objecting to a variety of alleged misdeeds at the company, whose stock became publicly traded last year.” A MedMen official denies the allegations.

Parker’s suit was filed in Los Angeles County Superior Court following his departure from the firm on Nov. 5.

“After earlier rounds of private funding, MedMen went public last May through a reverse takeover — MedMen bought an existing Canadian public company — that enabled MedMen’s stock to be listed on the Canadian Securities Exchange,” the L.A. Times reports. “Although California and more than two dozen other states allow medicinal or adult recreational use of marijuana, cannabis remains illegal under U.S. federal law and thus the major U.S. stock exchanges will not list cannabis firms that operate in the United States.”

Will Pot + RICO Challenge State’s Federalist Trend?

Marijuana plants grow at LifeLine Labs in Cottage Grove, Minn., in 2015. (Jim Mone/Associated Press)

Marijuana plants grow at LifeLine Labs in Cottage Grove, Minn., in 2015. (Jim Mone/Associated Press)

Writing in The Washington Post, legal commentator Jonathan H. Adler outlines both the context and challenges facing “legal” marijuana now that a law targeting gangsters is being used for civil resistance to state pot reforms. We’ve reported before that the federal 10th Circuit court has taken a stand and it’s significant.
 
Adler outlines the federal context, including how the U.S. Congress has linked marijuana to funding legislation, before going into the looming challenges.
 
He notes that “… a bigger potential threat [to state legalization efforts] comes from the fact that marijuana possession and distribution are predicate offenses under the Racketeer Influenced and Corrupt Organizations Act (RICO). This means that those who produce or sell marijuana are potentially subject to civil RICO suits, whether or not such activities are legal under state law. So held the U.S. Court of Appeals for the 10th Circuit earlier this year. A federal judge once described RICO as “the monster that ate jurisprudence.” Barring real reform at the federal level, it could be the monster that ate marijuana federalism, too. Here again, an appropriations rider is insufficient.

 
Adler is arguing that the RICO use is a threat to the “federalism” model for state control. 
 
Opinion | Will marijuana make federalism go up in smoke?