New Mexico marijuana operator prevails in drawn-out legal case

Just Released! Get realistic market forecasts, state-by-state insights and benchmarks with the new 2024 MJBiz Factbook member program, now with quarterly updates. Make informed decisions.


In what seems like a mere formality at this point, a New Mexico appellate court upheld a 2018 lower court ruling allowing the state’s largest medical marijuana operator, Ultra Health, to open two new dispensaries.

Ultra Health went ahead and opened the two new retail outlets after prevailing in a lower, district court case in October 2018, the Santa Fe New Mexican reported.

In fact, Ultra Health has opened 16 dispensaries since that ruling and now operates 25 statewide, according to a company news release.

Back in 2018, the New Mexico Department of Health refused to approve the two dispensaries, one on the grounds it was located inside a senior living facility and another because of stocking issues.

The District Court ruled that regulators had no basis in law to prohibit the facilities in Española and Los Lunas from opening, but the state appealed the decision.

The appellate court made a similar ruling, saying state regulators had no “discretionary” authority to stop Ultra Health from opening the dispensaries, according to the Santa Fe newspaper.