NY Judge Rules In Favor Of Shuttered Illicit Cannabis Shop On Procedural Grounds, Calling Into Question Mayor Adams' Enforcement Policy

A state judge has ordered the reopening of a New York City convenience store accused of selling cannabis illegally. The decision could have far-reaching implications for NYC’s cannabis enforcement efforts, reported The New York Times.

Justice Kevin J. Kerrigan ruled that city officials improperly closed a convenience store in Queens, saying that the city’s actions violated due process because the summons was improperly served and the closure recommendation was based on an unfounded assessment of illegal activity.

The overall outcome could have broader consequences, as it challenges the city’s aggressive approach of shutting down unlicensed cannabis sellers, a key initiative of Mayor Eric Adams‘ so-called "Operation Padlock to Protect," a sustained multi-agency enforcement effort to shut down illegal smoke and cannabis shops across the Big Apple’s five boroughs.

The Ruling

The judge emphasized that the “de minimis” standard, which requires proof that the unlicensed activity was more than minimal, was not properly applied. As a result, he vacated the closure order and ordered the Queens shop to be reopened.

“This sequence of events resulted in the closure of Petitioner’s business notwithstanding that it was not found, on the record, to have engaged in any illegal activity, which is a clear violation of due process” reads the file.

The city has already appealed the ruling.

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The Case

The case revolves around a store located at 35-12 Bell Boulevard, which was padlocked by the city sheriff's office after being accused of selling cannabis without a license. The enforcement action was based on a summons issued during an inspection in June. However, the summons was later dismissed on procedural grounds, as the city failed to prove it had been delivered to the correct person.

Despite this, NYC’s hearing officer recommended keeping the store closed, citing ongoing illegal activity. Justice Kerrigan, however, ruled that this recommendation was flawed, describing the actions as a “clear violation of due process.”

The judge's decision underscores significant procedural issues in the city’s enforcement strategy, which could occur in other cases.

Consequences For NYC Cannabis Market

Since May, the city claims to have closed down nearly 1000 unlicensed cannabis shops, with an estimated 3,000 still operating.

The closures have been applauded by some in the cannabis industry, as they are boosting legal sales. However, the ruling could open the door for many of these businesses to challenge their closures, particularly those that were padlocked under similar circumstances.

Lance Lazzaro, the lawyer representing the Queens convenience store, stated that the decision “opened the floodgates” for other businesses to contest the city's actions. He said he’s handling several similar cases, indicating a potential wave of legal challenges against the New York City’s cannabis enforcement tactics.

The ruling could set a precedent potentially complicating the city's ongoing efforts to regulate the legal cannabis market.

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IMAGE: Photo courtesy of NYC Mayor’s office. Police seize illegal cannabis in raid.