In a major setback for New York’s legal cannabis businesses, a state judge has ruled that recently supercharged efforts to close illicit stores are ‘unconstitutional’.
Yesterday, Queens County Superior Court Justice Kevin J. Kerrigan ruled that a New York City law used to close these stores, which gave city officials extensive authority to close stores without due process, violated the constitutional rights of the store owners.
Under the so-called ‘Operation Padlock’, hundreds of unlicensed cannabis stores have already been closed down.
One such store is Cloud Corner, which challenged these new rules in court following its closure in September.
The Queens-based store was shut down under the orders of New York City Sheriff Anthony Miranda, despite a hearing officer from the Office of Administrative Trials and Hearings (OATH) recommending against it, finding that the store was not open at the time of inspection.
Judge Kerrigan argued that such unchecked power granted to city officials undermined the judicial process and the principle of due process, noting that if hearing officers’ rulings are ignored, it renders administrative hearings ineffective.
Kerrigan’s decision to reopen Cloud Corner comes amid an appeal from New York City, with city officials arguing that the shutdowns protect public safety by addressing the risks of illegal cannabis sales.
Mayor Eric Adams’ administration defended the operation, noting that the city has seized over $82 million in illegal products through this program.
However, Lance Lazzaro, the attorney for Cloud Corner, contends that this ruling opens the door for numerous lawsuits, potentially resulting in ‘astronomical’ damages as businesses sue for losses and reputational harm caused by these closures.
This legal case is just one in an increasing number of lawsuits files across the state.
Last week, a federal lawsuit was filed against New York City Sheriff Anthony Miranda by his own officers, who accused him of mishandling the spate or large-scale illegal cannabis seizures.
According to Deputy Sheriff Furney Canteen, who filed the lawsuit, these operations were both unconstitutional and hazardous, seeing officers forced to handle the seized goods without proper training or safety protocols.
