The Supreme Court recently ruled in a case Jarkesy versus Securities and Exchange Commission (SEC) that defendants have a right to a jury trial under the Seventh Amendment when facing enforcement actions from federal agencies, writes Vox.
While this case considered a hedge fund manager accused of defrauding investors and his right to a jury trial to determine if he violated federal securities law or if the government acted properly when it tried him before an official known as an "administrative law judge," (ALJ) the ruling will impact similar cases.
Last August, MMJ filed a petition for a writ of mandamus in the U.S. Court of Appeals for the District of Columbia Circuit over a bulk manufacturing application submitted almost six years ago and never processed. MMJ’s president and founder Duane Boise previously told Benzinga that the inaction goes directly against the Control Substance Act, negatively impacts MMJ and ignores its effort to help those suffering individuals from Huntington’s Disease and Multiple Sclerosis through clinical research.
Upon discovering that DEA director Anne Milgram “illegally appointed the administrative law Judge Teresa Wallbaum” to hear the case, Megan Sheehan and Associates, lawyers representing MMJ, filed for relief seeking an order to halt these what they called “unconstitutional actions.”
Read Also: Federal Court Dismisses Marijuana Companies’ Lawsuit Against Government Prohibition
According to MMJ, the new ruling in the case Jarkesy vs SEC has significant implications for MMJ BioPharma Cultivation’s ongoing legal battles with the DEA.
In June, Milgram was summoned by the Rhode Island Federal Court in relation to the agency’s handling of MMJ's application to grow pharmaceutical marijuana. This action follows allegations that Milgram illegally appointed ALJ Teresa Wallbaum to oversee MMJ’s case.
Possible Impacts
Keypoints of the Jarkesy ruling related to MMJ:
- Seventh Amendment Right to Jury Trial: The ruling affirms that defendants have the right to a jury trial in enforcement actions by federal agencies.
- Constitutionality of In-House Tribunals: The court found that using in-house tribunals for enforcement actions violates the Constitution.
- Implications for ALJs: The decision challenges the authority and independence of ALJs in federal agencies, suggesting administrative actions should be heard in federal courts.
Boise applauded the Supreme Court ruling. “After years of DEA gross misconduct and blatantly unconstitutional actions interpreting policy to benefit their anti-marijuana sentiment, the United States Supreme Court ruled and the Constitution still matters.”
Who's Growing Weed For Research Purposes?
In March 2022, the York County, Pennsylvania-based Groff North America became the first company in the U.S. to introduce its cannabis crop for legal medical research. Up until then, the University of Mississippi was the only legal source of cannabis for federal research. The university obtained the license back in 1968, which made it the only source for research cannabis in the United States for over 50 years.
In 2023, however, there were speculations that Groff North America had "lost funding and has dissolved," which were allegedly debunked with one of the investors in the company telling Marijuana Business Daily that it is "still operating and working with our research partners." The company's page on Google, however, states that Groff North America is "permanently closed," and its last posts on Linkedin are two years old. It's unclear if any of the other eight permitted growers are successfully cultivating research marijuana.
MMJ has faced significant delays from the DEA in processing its application to cultivate strain-specific cannabis, impacting its research and development efforts.
Tim Moynahan, attorney and chairman of MMJ emphasized the critical need for MMJ to complete its research to help patients suffering from Multiple Sclerosis and Huntington’s Disease. He says he hopes that challenging the constitutionality of the DEA’s actions will lead to a resolution.
By challenging the use of ALJs and insisting on a jury trial in federal court, MMJ seeks to find a more favorable legal pathway to obtain their bulk manufacturing registration to grow pharmaceutical cannabis.
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