Alabama Lawsuit Against Cannabis Regulator Over Medical Marijuana Licensing Moves Forward

The Alabama Court of Civil Appeals rejected the Alabama Medical Cannabis Commission's (AMCC) attempt to dismiss a lawsuit filed by a medical marijuana operator, challenging its already troubled medical cannabis licensing process.

What Happened

Jemmstone Alabama, LLC, filed the lawsuit in December 2023, alleging mismanagement and improper denial of its application for an integrated medical cannabis facility license, reported Alabama Political Reporter.

In the lawsuit, Jemmstone initially named AMCC only as a defendant, in the caption of the complaint. However, throughout the document, the plaintiff consistently referenced individual commissioners.

The AMCC sought to take advantage of this procedural detail, insisting the absence of commissioners from the caption made the complaint invalid under the Alabama Rules of Civil Procedure.

The commission argued that the lawsuit should be dismissed on jurisdictional grounds, claiming sovereign immunity.

Read Also: ‘Real-Life American Hero' And Veteran Can't Get His Medicine As Alabama Medical Cannabis Legal Saga Continues, Activists Say Enough Already

The appellate court ruled that the omission of commissioners’ names from the caption was a technical error, rejecting AMCC's claim of sovereign immunity and allowing the lawsuit to proceed.

The court also rejected the AMCC’s claim that improper service of process made the case invalid.

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What's Next

The case now proceeds in the Montgomery Circuit Court.

The medical marijuana program was legalized in 2021 in Alabama. However, its implementation has been postponed due to ongoing legal challenges.

So far, AMCC managed to award, but not issue licenses to businesses that have applied to enter the state's medical market.

In December 2023, the Alabama cannabis regulator awarded 20 medical cannabis licenses for the production, distribution, dispensing and testing of medical marijuana (MMJ) as well as five of the most coveted permits – the integrated facility licenses, which allow for vertical integration. This move came after several failed attempts to allocate licenses.

Read Next:

• New Hope For Alabama Medical Marijuana Program As Judge Considers Revising Licensing Restrictions