GREENSPOON MARDER CLIENT ALERT: Federal Jury finds in Favor of Cannabis Grower in RICO Trial

Cannabis Blog Nov 1, 2018 Denver, CO

By: Nabil Rodriguez*

A Colorado Federal jury sided with cannabis cultivation owner Parker Walton as he fought a suit brought by his neighbors under a Racketeer Influenced and Corrupt Organizations Act (“RICO”), rejecting the claim that the smells and sounds from his cultivation facility damaged their property.

RICO is a United States Federal law that provides for extended criminal penalties and a civil cause of action for acts performed as part of an ongoing criminal organization. Although cannabis is still a Schedule I controlled substance under Federal law, in Colorado the cultivation and sale of cannabis for medical and recreational purposes is legal.

The neighbors, Hope and Michael Reilly, claimed that their adjacent property was damaged as a result of the inundated scent of cannabis, the noise from the cultivation’s air conditioning and the increase in traffic from trucks. After the Tenth Circuit agreed with the neighbors and held that the cultivation of cannabis was inherently racketeering, a Federal jury was left to decide how much damage was done to the Reilly’s property. The Federal jury rejected this claim of damages.

This outcome provides for groundbreaking precedent against future RICO claims and marks a major victory for the legalization and legitimization of cannabis.

Should you have any questions regarding RICO or how this holding may affect your cannabis business, please contact your Greenspoon Marder attorney.

*Nabil Rodriguez is not an attorney.

About Greenspoon Marder

Greenspoon Marder LLP is a full-service law firm with over 240 attorneys and more than 20 office locations across the United States. With operations from Miami to New York and from Denver to Los Angeles, our firm attracts some of the nation’s top talent in key markets and innovation hubs. Our core practice areas include Real Estate, Litigation, and Transactional Services, complemented by the capabilities of a full-service firm. Greenspoon Marder has upheld a spot on The American Lawyer’s Am Law 200 as one of the top law firms in the U.S. since 2015, and our goal is to provide exceptional client service by developing a thorough understanding of each client’s business needs and objectives in order to provide strategic, cost-effective solutions.

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This Greenspoon Marder LLP Client Alert is issued for informational purposes only and is not intended to be construed or used as general legal advice nor a solicitation of any type. Please contact the author(s) or your Greenspoon Marder LLP contact if you have any questions regarding the currency of this information. The hiring of a lawyer is an important decision. Before you decide, ask for written information about the lawyer’s legal qualifications and experience.

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