The Office of Cannabis Management (OCM) announced Dec. 13, 2024, that the Albany County Supreme Court issued a preliminary injunction in the case of Organic Blooms, LLC, et al. v. The New York State Cannabis Control Board, et al. (Index No. 904497-24) immediately enjoining it from processing (1) Conditional Adult-Use Retail Dispensary (CAURD) applications lacking a proper Notice to Municipality after November 17, 2023, and (2) all other provisional adult-use applicants without a secured location until this matter is resolved.
In May of this year, Organic Blooms LLC, Niagara Nugget, LLC, Blackmark LLC and Windward Management, LLC filed a joint Article 78 and declaratory action in the Albany County Supreme Court against both OCM and the New York State Cannabis Control Board (CCB) alleging that OCM and CCB have acted beyond their statutory authority in considering applicants without a secured location for licensing consideration. When the attorneys for OCM and CCB brought a motion to dismiss this action, plaintiffs brought a cross-motion requesting a preliminary injunction in their favor.
The applications brought by both parties were considered by the Honorable Sharon A. Graff of the Albany County Supreme Court. The court ultimately denied OCM and CCB’s motion to dismiss, and granted plaintiff’s motion seeking a preliminary injunction, holding that OCM and CCB are enjoined from processing CAURD applications for applicants who do not have a secured location and all other provisional adult-use applications lacking a secured location. See Organic Blooms, LLC, et al. v. The New York State Cannabis Control Board, et al., Decision & Order, Index No. 904497-24, Albany Co. Sup. Ct. (December 12, 2024).
Significantly, Judge Graff acknowledged plaintiffs will likely succeed on the merits of the underlying petition claiming OCM and CCB acted arbitrarily and capriciously and beyond their statutory authority. Absent injunctive relief, the court held that plaintiffs would suffer irreparable harm in that they would not have the opportunity of being first to the market and would potentially lose proximity protection for their secured location. Finally, Judge Graff decided the harm provisional applicants face as a result of the injunction is mitigated by the burden non-provisional applicants have endured in having to maintain their locations while waiting for licensure. Overall, the balance of the equities favored the plaintiffs.
This litigation highlights the broad liberties OCM and CCB continue to exercise in contravention of current law, and sets the groundwork for others who have been similarly aggrieved by OCM and CCB’s roll out of the adult-use cannabis industry.
