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New York Supreme Court Agrees with Clark Smith Villazor LLP’s Four Service-Disabled Veteran Clients that New York State Cannabis Agencies Failed to Comply with Court Order

August 30, 2023

After issuing a preliminary injunction halting the processing of allegedly unconstitutional conditional adult use retail dispensary (CAURD) licenses in the cannabis industry earlier in August, on August 28, the New York State Supreme Court Justice presiding over the case found that Defendants New York State Cannabis Control Board, Office of Cannabis Management, and two agency executives failed to comply with the Court’s prior order allowing them to seek exemptions from the preliminary injunction for certain CAURD licensees who were close to operational at the time the preliminary injunction went into effect.  As a result of Clark Smith Villazor’s unrelenting efforts to hold Defendants to the standard for exemption ordered by the Court and to identify inconsistencies and false assertions in Defendants’ applications for exemptions, the Supreme Court denied all of Defendants’ requests for exemption.  The Court found that Defendants’ submissions contained “conflicting,” “contradictory and confusing assertions” and “failed to comply with this Court’s Order.”  Acknowledging the inadequacy of Defendants’ prior submissions, the Court also granted Clark Smith Villazor’s clients’ request that any future exemption applications be supported by certifications made under oath, “on an applicant-by-applicant and requirement-by-requirement basis, . . . that each of the [included] applicants have satisfied each licensing requirement.”

The Court’s August 18 preliminary injunction, which can be viewed here, remains in effect pending future orders from the Court.  The Court’s August 28 order can be viewed here.

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