Marijuana Dispensary Loan for $500,000 Doesn't Need to be Paid Back, Judge Rules, Because Pot is Illegal Under Federal Law

marijuana flowering.jpg
Image: Jamie Peachey
A $500,000 loan to a Colorado company intended for a medical-marijuana facility doesn't have to be paid back because pot is illegal under federal law, a county judge has ruled.

The bombshell ruling, (tip of the hat to lawyer Richard Keyt's medical-marijuana blog), has major implications for the budding dispensary industry in Arizona. Applications for dispensaries are set to be accepted this month, and state-authorized, medical-pot retail and grow centers are expected to open by late summer.

Although this isn't a precedent-setting ruling that other judges must consider, the basic concept of the April 17 ruling is a wake-up call for lenders and investors.

As Keyt wrote in his blog, if this goes to an appeals court and is upheld, "any contract that has a purpose related to Arizona medical marijuana may be unenforceable and not worth the paper it is written on!"

In reading the ruling by Maricopa County Superior Court Judge Michael McVey, it's easy to see how Keyt came to that conclusion.

The case involves two simultaneous $250,000 loans by Valley residents Michele Hammer and Mark Haile to Today's Health Care II, a Colorado corporation. The company is affiliated with Today's Health Care, a dispensary in Colorado Springs.

Hammer and Haile lent the money in August 2010 for the stated purpose of financing a "retail medical marijuana sales and growth center," according to loan documents signed by each side. Today's Health Care agreed to make an interest payment every month.

By March 12, 2011, the dispensary failed to make a timely payment. It defaulted on the loan agreement a week later.

Judge McVey wrote that the only relevant legal issue was whether or not the loan documents are enforceable.

He says they're not, because the U.S. Controlled Substances Act makes all aspects of pot sales and cultivation illegal.

McVey wrote:


An agreement is unenforceable if the acts to be performed would be illegal or would violate public policy... The explicitly stated purpose of these loan agreements was to finance the sale and distribution of marijuana. This was in clear violation of the laws of the United States. As such, this contract is void and unenforceable. This Court recognizes the harsh result of this ruling.


Harsh is right. Half a million bucks -- up in smoke.

Randy Nussbaum, managing partner at the Valley law firm that represented Haile and Hammer, says his clients are "not by any means wealthy," that he doesn't think they had any previous experience in the marijuana industry, and that they believed lending money to an existing Colorado business would be legal.



Advertisement

My Voice Nation Help
48 comments
ponyee
ponyee

Good News! Good News!! Good News!!!

We offer unsecured loans to people around the globe. Our loan offer is available for people with bad credit and
without placing any collateral to secure a loan, Our Loan Offer Ranges From $25, 000.00 To $35, 000,000.00. We are
based in United Sate.

Once we access your application profile and evaluate it to merit the company requirement, your requested loan
shall be approved immediately and this take maximum of two working days to complete your loan processing. We want to formally inform you that you have come to the right place where all your financial distress shall be brought to
an end, and we want to assure you that you shall find solace and comfort working with this company. To this effect we want to bring to your notice the following information. The Company Offers Private, Commercial and Personal Loans
with very Minimum annual Interest Rates as Low as 3% within 1 year to 25 years repayment duration period to any part of the world. We give out loans of any amount not-withstanding your social credit report provided you are well capable of making the repayments as scheduled, which is why our service is superior to other loan sharks. Our loans are well insured for maximum security which is our priority.

LOAN APPLICATION FORM
First Name:
Last Name:
Contact Address:
City/Zip:
Country:
State:
Gender:
Date Of Birth:

LOAN INFORMATION
Amount Needed:
Purpose Of Loan:
Loan Duration:
Occupation:
Monthly Income:
Telephone / Mobile Number:

Mr.Pon Yee
Managing Director.
Our Mission is to assist the poor and needy financially!!!

Kindly Print the Letter and complete it in Capital letters before sending it back to our admin <<  ponyeefastloan.ch@cash4u.com << <<< ponyeecashloan@gmail.com >

And also attach any means of identification like Driver’s License, International Passport or ID with your three
months certified bank statement and Your Pay-slip or Company/Business CK.
First choice Financial Services is the trading name of First choice Financial Services Group U.S.A Authorized & Regulated By The Financial Conduct Authority (FCA) United United. Reg. No. 2316399.

trevorbradley
trevorbradley

My name is  Mr Trevor Bradley a citizen of USA. i have been scammed by 4 different Internet international lender, they all promise to give me a loan after making me pay several fees which yield nothing and amounted to no positive result. i lost my hard earn money and it was a total of 5,000USD. One day as i was browsing through the internet with tears on my eye i came across a testimony of man who was also scammed and eventually got linked to a legit loan company called Mr Andrew Scott Loan Company where he finally got his loan, so i decided to contact the same loan company and then told them my story on how i have been scammed by 4 different lenders who did nothing but to course me more pain. I explain to the company by mail and all they told me was to cry no more because i will get my loan in their company and also i have made the right choice of contacting them. i filled the loan application form and proceeded with all that was requested of me and I was given a loan amount of $100,000 Dollars by this great Company (ANDREW SCOTT LOAN COMPANY} managed by Andrew Scott and here i am today happy because ANDREW SCOTT LOAN COMPANY has given me a loan so i made a vow to my self that i will keep testifying on the internet on how i got my loan. Do you need a loan urgently kindly and quickly contact Mr Andrew Scott Loan Company now for your loan via email:andrewscottloancompany364@gmail.com

Thank You All For Your Understanding,


Mr Trevor Bradley


financefirm
financefirm

Welcome to may field finance, Do you need an urgent loan at 3%? To pay your bills? if yes contact

us today at ffirm235@gmail.com


FILL BELOW LOAN APPLICATION FORM


Name:

Country:

State:

Phone Number:

Age:

Occupation:

Amount Needed as a Loan:

Duration:

Website: www.mfieldfinancecompany.gnbo.com.ng 

Dir: Mr. NASMITH

nazmunnaher
nazmunnaher

We have recently begun to accept new members
for 2011-2012 and walk-ins are always welcome.
We have lowered our pricing and now offer a 10% discount
for Veterans & Students
(with valid ID) and HIV & Cancer patients. 
(All our TOP SHELF 1/8’s are capped at $40). 
Since opening our doors in 2009 our
Denver dispensary has stood by
our product and offered a 100% Satisfaction Guarantee.
http://www.tgtree.com/

truth
truth

what someone say the federal government should look into just like the lawyer said "it may come back to  bite them in the butt" is who really owns Todays health care  what is there background and "honest" intentions.

HighInHawaii
HighInHawaii

They should pay back the money. If they don't it will make all of the others look bad & will never be able to get a loan.

rsteeb
rsteeb

So why is "Schedule I Cannabis" enforceable-- given that it is a damned lie?

Horiuchicoochie
Horiuchicoochie

The loan
should simply say in the terms: Money for equipment, lights, tables retail counters,
hardware... blah blah blah...and even the lease of the building. Nothing is
illegal about that.
Wells Fargo loans money for a dude's home mortgage and  said dude rents
house to a Cat who decides to grow weed...Can you tell Wells Fargo to go fargo
themselves?
Next case please

Corey Miller
Corey Miller

I am an American Veteran, who uses cannabis for pain mamagement! Fuck you... Call me a druggie to my face, punk bitch! I bet your an alchoolic, and loans should not be made to them either, they drink it all!

slippery mike
slippery mike

GROW YOUR OWN!!!!!!!!!!

and then just try to keep friends and relatives from stealing it.
I wonder if the police would prosecute you for theft,if you stole a bag from someone?

Hohohoazhohoho
Hohohoazhohoho

remember this guy when you buy your medical marijuana, he'll no doubt screw you too...

Walter Concrete
Walter Concrete

If you can't afford to lose it then don't use it.   It doesn't seem like a wise investment to loan money any way.    Anyone can default and file bankruptcy.   Sounds like they had too much money laying around and felt the need to throw a bunch away.

Seedy Ward
Seedy Ward

Goes to show one shouldn't be too specific in documents relating to this business. I attended a MMJ business seminar at one of the NORML conferences in recent years. The speaker said that one should never lie on the paperwork. Still, one shouldn't be too specific either. Businesses can for example, be incorporated for the stated purposes of dealing in "floral arrangements" or "dried flowers." Don't lie, but don't be so explicit as to incriminate yourself.
Still, anyone who goes into the dispensary business here (or anywhere else) needs to be quite aware that the DEA/DOJ may show up and steal everything, any time they feel like it. That's what I call a financial risk.

Phil
Phil

This will be the death nail for the near future of this needed industry. Thank the coop trying to get out of the obligation they entered into; reap any benefits? Think of the people you just hurt.

Coz
Coz

The Feds end the failed policy on marijuana, not a chance, they are not that smart.
Any failed policy is a success to the Feds no matter how much it costs the tax payers.

ExpertShot
ExpertShot

Okay, now folks - the State of Arizona and the State of Colorado have CHOSEN, through their elective process, to make marijuana legal in certain respects.  Those States have the obligation now to provide for the ability of business people to get proper legal redress in the Courts.  The Plaintiffs in this case should take an appeal of this decision all the way to the Supreme Court!!! Whenever the States choose to take an action the Federal Government can not interfere in that action anymore. The Fourteenth Amendment, guarantees that the states, including the Federal Government, can not, among other things, deprive people of the equal protection of the laws.  If a contract involves a legal contract that would normally be enforced by the laws, the government can't say that other contracts are not valid.  Also
Amendment 10 - Powers of the States and People. Ratified 12/15/1791. Note

The powers not delegated to the United States by the Constitution, nor
prohibited by it to the States, are reserved to the States respectively, or to
the people.

The States of Arizona and Colorado have reserved unto themselves the right to make marijuana legal for medicinal purposes - the Federal Government is not entitled, under our system of laws, to take this "power" back. 

just sayin
just sayin

A man should never gamble more than he can afford to lose.

Marcy
Marcy

Never loan money to a druggie

Marcy
Marcy

Did I call you a druggie honey?  Either your pain or what you are smoking to manage your pain has left you unable to think rationally.

charlie_oscar
charlie_oscar

You also better be a not-for-profit  - or you will get raided no matter how square the paperwork is.

Seedy Ward
Seedy Ward

No, it won't be the death of the industry. If dispensaries can't operate here, then patient-to-patient services backed by small growers will thrive. Look in the ads in the New Times: they're already here and doing well.

AttorneyatLaw
AttorneyatLaw

Article I, Section 8 of the U.S. Constitution:

"The Congress shall have power to...provide for the ...general welfare of the United States; ...To regulate commerce ...among the several states..."

The Constitution reserve the right to the Congress to "provide for the...general welfare of the United States" and "To regulate commerce...among the several states."  These rights are sufficiently broad to enable Congress to enact legislation regulating drugs as being in opposition to the general welfare of the United States and and to enact legislation regulating the interstate sale (and financing) of drugs. 

The power to enact legislation to regulate the manufacture (or growth), processing, sale and possession of drugs is clearly reserved to the United States under Article 8, Section 1 and therefore the federal government is not taking anything back in enacting and enforcing such regulations.

Whether drugs are in fact good or bad for the general welfare of the United States may is not the issue - Congress has determined in its discretion that they are and Congress has the discretion to make such determination.

The U.S. Constitution is much more sophisticated and nuanced than you would like to believe.  There are many parts that must be considered in conjunction with one another and it is insufficient to cite the 10th Amendment and believe that you have crafted a winning legal argument.

mwmike
mwmike

 Or should invest in corrupt, exploitative, millionaires, billionaires, and corporations. Sad.

Greg
Greg

  The Bible also sez do not Gamble! No Judge Judy Needed!

Greg
Greg

  How do you know if they are druggies? do you give them an on the spot urine drug test before the loan? what about drunks? do you loan them money? what about legal prescription pain pill users who are addicts? what about them? loan? or no loan? please Marcy tell us about all your wisdom and answers for we are lost idiots without your intelligence and answers we need you! you are GOD!

Greg
Greg

 The Bible sez never loan money just give it to the person who is asking for the money. that way the loaner never expects it back and everything works out. No Judge Judy needed!

sven
sven

  You hate everybody and everything. I notice things like that in your pissy writings. your starting to get alot of Marcy haters on here. some is hate mail to. keep up the good work your a real smart cookie.

Shaun Senechal
Shaun Senechal

I guess what your saying is fat people, depressed people and many other situations would apply too. Where did you draw that conclusion from? and who said pot users are druggies? 

Albert
Albert

Yeah... but that doesn't give them authority over everything..... The fact is.. if you read the Constitution you'll notice that the "common defense" part has the enumeration for the creation of the Army and Navy, And the regulate commerce among the several states.. only had to do with not preferring ports, and borders of states not obstructing, taxing products going to and from different destinations... It gives no explicit authority to have ALL power over commerce. In fact the only thing the congress has ALL authority is ANYTHING relating to All government property. (Article 4.)It actually says that they have the power to make all rules and regulations with govt property.... And the 10th Amendment clarifies and supersedes anything prior... The 10th Amendment is clear.. All  powers not enumerated to the Federal Government(all 3 branches), and those powers which are not prohibited to the states... BELONG to the States.... respectively to the PEOPLE!! ***Whole point of an AMENDMENT**** To change or confer new power.
And then we come to Article 6.... All "public servants"  are required to take the oath to uphold the Constitution... and wait... They are ALL BOUND... to the Constitution. And without a clear example of duty..And what did Alexander Hamilton... the Federalist say about the courts...  Something that... "Limitations of this kind can be preserved in practice no other way than through the medium of courts of justice, whose duty it must be to declare all acts contrary to the manifest tenor of the Constitution void. Without this, all the reservations of particular rights or privileges would amount to nothing."The SCOTUS has power to uphold or deny legislation.. within the scope granted by the Constitution. All other courts are to have the same power and authority, except that the SCOTUS has appellate jurisdiction. The only example of a granted exemptions or exemptions is given to diplomats, foreign counsel and that is it!!!!  Everything else must be followed or be "ENUMERATED" by the United States Constitution. The thing is.. this a states rights issue. And according to the Constitution it's within it's own Sovereign Right to make these medical marijuana laws. Those 17 enumerated powers in Article 1 still don't invalidate the 10th Amendment.. it's just the opposite...

RetiredArmy
RetiredArmy

Your response is why I hate lawyers. The law and lawyers use words to tell lies based on other lies with no requirement to prove anything using a scientific method. Please tell me exactly how do you manufacture a plant. And then tell me how a plant that is grown in the privacy of someones home, and then consumed in that home can be covered under the commerce clause when no commerce took place.

I'm sure as a lawyer you will do just as the supreme court did and use weasel words to spin your lies.

rsteeb
rsteeb

 So please explain the necessity of the 18th amendment. 

Guest
Guest

The Bah-bull? Now that's a reference I consult first in all legal disputes!

Guset23
Guset23

  Marcy is a know nothing cunt.

Albert
Albert

 Exactly......even prior to the 1920's... the government knew they didn't have the power to make any "product" illegal, and that's why it TOOK a Constitutional Amendment to prohibit alcohol. Regulate commerce among the several states...Only  meant prohibit STATES from interfering with transporting through, and not being blocked, stolen, or taxed...(and it's even in Congress's prohibited actions... not to prefer one port or destination over another)... Honestly.... who else was going to handle disputes between states.. when another took, stole, or taxed, or interfered with "goods" ???? 

Guest23
Guest23

  watch judge judy then.

Guest23
Guest23

Nobody cares what you think.

Guest23
Guest23

  im am 100% a loser. so what now?

The real guest23
The real guest23

  you and tom and walter should have a butt fucking 3 threesome.

Guest23
Guest23

  Fuck You Tom!  your a male cunt to. im sure you and Walter Concock could have some good ass fucking sex together. get in touch with him sissy boy.

Tom
Tom

Sounds like you haven't had any pussy since pussy had you. You are one pathetic loser.

Tom
Tom

Why don't you put a sock in your cock hole you puny ass fucking punk.

the original Guest23
the original Guest23

Heh, you dishonor the nick with such trite and boorish posts... Since you are pretending to be me, you basically called yourself a cunt and told your self to fuck off... If only we could rely on you to follow your own advice but i doubt it. Having been on the net since about '89 and have participated and observed flame wars and trolling by some of the best at these skills, i can authotiyatively state you are but a limp noodle troll, whose life probably doesnt amount to much, and wasnt born with a very high IQ, and probably doesnt have a girlfriend thus the time to participate in such useless endeavors. Everytime you post I will chuckle and know what a lonely and pointless life that you have led if your pitiful attempts at trolling are any sort of sign.

Just so you know you have been short circuited,any further posts under Guest23 will not be made by me but the imposter above.

Guest23
Guest23

  GO FUCK YOURSELF YOU CUNT!

Guest23
Guest23

  Your a male cunt Walter. and im sure you take it up your ass like most cunts do.

the original Guest23
the original Guest23

Heh, if you are going to steal my nick at least learn to spell "Guest" correctly.

Since someone or ones, is attempting to confuse others by appropriating my nick, it is best if everyone else doesnt automatically think that I, the original Guest23, was the poster of such comments, or that i support what the imposter has written. I havent been around here and popped in here to see if anything interesting was being written and found the above post. I hope to find time to dig through various comments and see what else has been posted under my nick but that is probably, not going to happen, so most likely i will find a new nick and start over again. But considering how little it takes to get a troll off, it probably wont be the last time it happens. Probably the best thing i can say, is dont believe that the author of any post is actually who they are representing themselves as, something i took to heart about 20 years ago after digging around the net in the early years.

Now the question becomes... Did the real Guest 23 post this or the imposter... Common sense should make that obvious.

In most cases, i would agree that loaning money to a druggee is probably not the best action to ever take but in my experience casual marijuana smokers are hardly druggees on par with meth/crack/heroin users. But a blanket statement that states that anyone that takes drugs also would make anyone who drinks alcohol would be a druggy in your book which is stereotypical garbage.

mwmike
mwmike

 Thanks for your intelligent and insightful contribution to the subject at hand.

Walter Concrete
Walter Concrete

I'll bet you think that's funny to call a woman a cunt.  But then again, you're a genius whose time has finally come to show us all how intelligent you really are.   And this is what you came up with.    This is a forum where people come to express their opinions because we still have that right in this country.   At least for now.    There's no place here for people like you.    Now, go do your homework if you can even read it and then go to bed and wrap the sheet around your neck and throw yourself off the bed until you hang yourself.     You're a nasty shit licking, drooling retard aren't you?

Now Trending

Phoenix Concert Tickets

From the Vault

 

Loading...