Sumthin-Sumthin44692 t1_irjlr6q wrote on October 8, 2022 at 7:00 PM

Reply to comment by plugubius in Pot twist: Cannabis firm refuses federal judge's ruling because its business isn't legal under federal law by Doc_Dante

A commercial lease for the purpose of running a cannabis business is illegal under federal law. A lot of commercial leases have the business use/purpose expressly stated in them. But even if this one didn’t the court is not going to ignore what the lease was for. The court cannot enforce a contract, including rent, if it is for an illegal purpose.

Similar cases involve personal service contracts for “physical assistance” that are actually for sex. The court looks to how a contract actually functions. Not just how it appears to function.

plugubius t1_irjm9et wrote on October 8, 2022 at 7:05 PM

>A commercial lease for the purpose of running a cannabis business is illegal under federal law.

I have asked repeatedly for someone to identify this law. I know of none. A prohibition on cannabis sales alone won't alter state contract law (which is what the federal court must apply here).

PullDaLevaKronk t1_irjnl5o wrote on October 8, 2022 at 7:15 PM

Federal law also makes it a felony to lease or rent any place for the purpose of manufacturing, distributing, or using any controlled substance, including cannabis.

plugubius t1_irjrzhz wrote on October 8, 2022 at 7:52 PM

That law does not expressly preempt state contract law, and it would be very hard to argue that conflict preemption applies. It allows the Attorney General to seek a variety of criminal, civil, and administrative penalties. That power does not clearly conflict with a state's ability to decide contractual rights in the absence of the Attorney General's action, and it does not provide for any private enforcement. The scope of federal preemption in the drug context is very narrow.

lorgskyegon t1_irk5wl7 wrote on October 8, 2022 at 9:39 PM

The landlord can't ask a federal court to enforce a contract that is illegal under federal law.

PullDaLevaKronk t1_irk0xll wrote on October 8, 2022 at 9:01 PM

Never made the argument. Just provided a reliable link to a mention of the law you were looking for.

Sumthin-Sumthin44692 t1_irjnt9i wrote on October 8, 2022 at 7:17 PM

As a Schedule I drug, it is illegal to possess or sell cannabis under the Controlled Substances Act. Federal judges have to follow the CSA. State courts don’t (usually).