Ten marijuana companies filed suit against the Detroit suburb of Berkley, Michigan, in an attempt to overturn a license scoring process that left all of them without business permits.
According to C&G Newspapers, the city identified three cannabis companies as top scorers for marijuana business licenses and left out 27 additional applicants that had thrown their hats in the ring.
Subsequently, 10 of the companies filed two separate lawsuits against Berkley, alleging that the scoring criteria were not defined or explained and that the city “improperly delegated authority” in the decision-making process.
Lawsuits such as this have become increasingly common in U.S. markets where there are competitive application processes for a limited number of marijuana business licenses.
The three top scorers currently in line for licenses in Berkley are Quality Roots, Operation Grow and Attitude Wellness.
The 10 plaintiffs in the cases are:
- 123 Ventures.
- Berkley Herbal Center.
- GS Ashley.
- Fire Farm.
- Nature’s Remedy.
- Oak Flint.
- Pure Life Berkley II.
- Pure Life I.
- Pure Roots.
- Yellow Tail Ventures.
The lawsuits requested an injunction to halt the licensing process.
The Berkley city manager told C&G Newspapers that no companies have been yet awarded or denied business licenses and that the city was undergoing an appeals process when the two suits were filed.