Harris Sliwoski: Lighting Up the Legal Scene: How Cannabis Arbitration Can Ease the Burden on California Courts

When California opened up for recreational cannabis licensing in 2018, cannabis businesses began sprouting up like wildflowers. This growth has been exciting but due to market volatility and the decline in the state’s cannabis market, legal disputes are also on the rise. California courts are now jam-packed with cannabis-related disputes to the consternation of many judges. Thankfully, there may be a solution to this problem: arbitration. Let’s delve into how the cannabis industry got here and how arbitration can help it continue to bloom.

The Cannabis Boom

When California gave the green light to recreational cannabis, the industry exploded. Dispensaries, growers, and related businesses began to bring in billions of dollars. This boom created thousands of jobs and boosted the state’s economy, generating substantial tax revenue. However, the market began to spiral out of control due to things like regulatory overload, competition with the illegal market, high taxes, and more. With the decline in California’s cannabis market came many lawsuits – from partnership disputes, to contract breaches, to intellectual property infringement cases, and everything in between. These cases are clogging up the courts, making it hard for businesses to get timely resolutions in an industry where time is money. Additionally, companies must navigate a complex web of local and federal laws, as cannabis remains illegal at the federal level, creating further complications and uncertainties for business owners and investors. Read full article

Lighting Up the Legal Scene: How Cannabis Arbitration Can Ease the Burden on California Courts