 New York state has been working hard to get their adult use recreational cannabis sales up and running before the end of 2022.
They’ve just launched delivery services, which is one way to get your weed, but retail stores still aren’t quite open. And now, thanks to just one person, the whole state New York is forced to wait longer. A newly filed lawsuit in New York state claims that the state dispensary license application discriminates against out-of-state operators, blocks interstate commerce, and is in violation of the Dormant Commerce Clause, which forbids states from favoring their own economies over a healthy national marketplace. While that lawsuit is on-going, a federal judge has barred the state from granting 63 of it’s allotted licenses until this case is resolved. The lawsuit was brought by a newly formed corporation called Variscite, which is owned by Kenneth James Gay, a 49 year old man from Battle Creek, Michigan. Kenneth Gay has filed almost idential lawsuits in other states as well. But why? Variscite’s lawyer, Christian Kernkamp, shared this statement from the plaintiff via email on November 22, 2022, saying, “The plaintiff, Variscite, had hoped to avoid enjoining cannabis sales in New York. Variscite made an offer to settle this case at no cost to the State so licensing could proceed, but the State never even gave us the courtesy of a response. The injunction could be over tomorrow, but the State prefers instead to litigate even though the court has already found a ‘clear likelihood’ that the State violated Variscite’s constitutional rights.” The lawyer makes it sound as if his client is just trying to get a license. But other’s have different perspectives on the plaintiff’s motive. Alex Norman, who is building a consumption lounge and dispensary brand in NYC, said, “I did some digging and realized the person is just hating on the situation.” Norman thinks the plaintiff could be acting on behalf of a large weed company that is frustrated New York won’t let them set up shop as easily as other states. Or, Norman said, “It’s just somebody acting like a baby about it... You’re getting in the way of guys like myself that got arrested and were targeted, or at least were affected by the most aggressive policing of cannabis anywhere in the world. New York has the highest number of weed arrests than any other city, any country in the world. So it was really something very selfish and more reactionary. Like a kid, (instead of) really trying to take a step back and looking at it. It’s a selfish move.” Norman said his lawyer, Jeffrey Hoffman, advised it could take 3 months or more for the court to give New York permission to grant the held licenses. Neil Willner, co-chair of the Cannabis Group at Royer Cooper Cohen Braunfeld LLC told Leafly via phone in early November that the high stakes of the case lead him to believe the state will settle with the plaintiff to avoid further delays. And while the plaintiff’s lawyer says it isn’t about money for them, Willner thinks a settlement could include a payment, or a special license. Willner says, “It was in my mind a calculated strategy … It had to have been (calculated).” He pointed out that the plaintiff did not have a significant presence in New York, which is a requirement. Willner thinks no one would have paid the time or money to apply knowing they were ineligible, “Unless they were ready to litigate.” Attorney Dan McKilliop counsels corporate, commercial, and private clients for Scarinci Hollenbeck in the New York Metro area. McKilliop told Leafly that the delay will breathe new life into gray market gift shops and storefronts currently serving New York’s massive weed appetite. Comments are closed.
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