N.J. Appellate Division: Employee Stated Viable Claim Against Employer for Failure to Accommodate Off-Duty Medical Marijuana Use

In a recent decision approved for publication on March 27, 2019, the New Jersey Appellate Division addressed an issue of first impression: whether an employee can state a claim for disability discrimination based on an employer’s refusal to accommodate legal, off-duty use of medical marijuana, as permitted by the New Jersey Compassionate Use of Medical Marijuana Act (Compassionate Use Act).

In Wild v. Carriage Funeral Holdings, Inc., et al., A-3072-17T3 (N.J. Super. Ct. App. Div. Mar. 27, 2019), the plaintiff was a licensed funeral director for Carriage Funeral Holdings, Inc. (Carriage). His duties included, among other things, driving the funeral home’s hearse and other vehicles. After working for Carriage for approximately three years, the plaintiff was involved in a car accident in the course of his employment. At the time of the accident, he was driving one of Carriage’s vehicles during a funeral when another driver ran a stop sign and struck the vehicle driven by the plaintiff.

Read the full Alert on the Duane Morris LLP website.

Duane Morris Cannabis Industry Group Ranked as a National Leader by Chambers and Partners

Duane Morris congratulates our Cannabis Industry Group on being ranked as a National Leader in Cannabis Law by Chambers and Partners.

Seth Goldberg
Seth A. Goldberg

Seth Goldberg is also ranked as a national leading attorney in Cannabis Law.

Chambers writes:

Strengths Sources describe the team as “good attorneys with a good business sense. They look at things with balanced perspective, balancing business and legal terms in appropriate fashion.”

“They’re first-tier,” says a market observer, adding: “I’ve worked with numerous firms and Duane Morris is amongst the best. We’ve utilized numerous partners and associates from their firm, and the quality of all is consistently high, which I find to be unique.”

The firm’s full-service capabilities are highlighted by a client: “The nice thing about them is they have access to everything I need, and are able to bring resources to me in other parts of the world as well.”

What Investors Need to Know Before Entering the Cannabis Real Estate Market

With 10 states plus the District of Columbia legalizing cannabis for recreational use and medical marijuana legal in another 23 states, cannabis sales are projected to grow from $10.8 billion today to about $100 billion over the next five years, according to the National Institute for Cannabis Investors.

As a result, investors in cannabis-related industrial real estate can expect exceptional returns on investment (ROI). In a 2018 survey by Denver-based PropTech developer Apto, 76 percent of commercial real estate brokers handling cannabis deals in all states where the drug is legal in some form reported cannabis deals pricing above market.

[…]

Cannabis real estate values are likely to continue rising due to the supply-demand imbalane, says Clint Callan, a Bay Area-based partner at the national law firm of Duane Morris LLP. “With cannabis, there are only so many spaces and opportunities available, which runs up the price,” he adds.

To read the full text of this article in which Duane Morris partner Clint Callan is quoted,  please visit the National Real Estate Investor website.

Immigrants Can Be Denied U.S. Citizenship for Working in Regulated Marijuana Industry

Last week the U.S. Citizenship and Immigration Services (USCIS) issued guidance indicating that working in the marijuana industry, or even just possessing cannabis, could be grounds to reject a citizenship application—regardless of whether it is done in a state where it is legal. This guidance also would apply to permanent residents or “green card” holders seeking citizenship. The policy guidance is set forth in the USCIS Policy Manual and seeks to clarify that violations of federal controlled substance law, including violations involving marijuana, are “generally a bar to establishing good moral character for naturalization, even where that conduct would not be an offense under state law.” The policy guidance also clarifies that an applicant who is involved in certain marijuana-related activities may lack good moral character if found to have violated federal law, even if such activity has been decriminalized under applicable state laws.

Reports by various news outlets indicate that some lawful immigrants have already been denied naturalization by USCIS because of their employment in the cannabis industry. According to USCIS, as long as marijuana remains illegal under federal law, the agency won’t grant special considerations to individuals whose marijuana activities may be decriminalized under state or local law. The position of USCIS is that “marijuana remains illegal under federal law as a Schedule I controlled substance regardless of any actions to decriminalize its possession, use, or sale at the state and local level, federal law does not recognize the decriminalization of marijuana for any purpose, even in places where state or local law does.”

As we know, the U.S. Customs & Border Patrol has prevented some Canadian citizens from entering the U.S. because of their involvement in the cannabis industry. It remains unclear how strict USCIS will be in enforcing the latest policy guidance on citizenship. For the time being, participation in the cannabis industry will continue to constitute a potential bar to a determination of good moral character for naturalization eligibility, even where such activity is not a criminal offense under state law.

Duane Morris Partner Jennifer Briggs Fisher Named Cannabis Attorney of the Year

Jennifer Briggs Fisher, partner and a team lead of Duane Morris’ Cannabis Industry Group, has been named Cannabis Attorney of the Year by Bonaventure Equity. The award was presented at the Cannabis Dealmakers Summit on April 18 in San Diego.

Ms. Fisher regularly works with cannabis companies and ancillary businesses in California and throughout the nation, as well as in Canada, to provide compliance advice on a wide range of issues related to legal cannabis and hemp business activities. She is an experienced litigator, provides advice on regulatory and compliance issues and has represented corporations and individuals involved in a broad range of complex and high stakes civil, criminal, legislative and administrative proceedings.

FDA Announces Its Next Steps for Cannabis Products

With the enactment of the Agriculture Improvement Act of 2018 (also known as the 2018 Farm Bill), hemp-derived CBD appeared to be on the table for marketing all across the country. However, the U.S. Food and Drug Administration’s (FDA) press release issued that same day put a hold on the jubilation, stating that FDA considered any and all cannabis-containing or cannabis-derived products as drug products and not food or dietary supplements, regardless of whether the CBD was hemp-derived.

On April 2, 2019, departing FDA Commissioner Scott Gottlieb issued a statement about FDA’s next steps to advance a regulatory pathway for cannabis-containing and cannabis-derived products. At the same time FDA updated its cannabis-containing products and cannabis-derived products Q&A. It is clear that, at this point, FDA has not changed its position.

Read the full Alert on the Duane Morris LLP website.

Cannabusiness: The Marijuana Industry on Sirius XM

Seth Goldberg

A two-hour special program, “Cannabusiness: The Marijuana Industry,” will be broadcast on Sirius XM’s Business Radio, Channel 132. Duane Morris partner Seth Goldberg will be interviewed on the program. The program will be re-broadcast at the following times:

Tuesday, February 26 from 2 to 4 pm ET
Tuesday, February 26 from 8 to 10 pm ET
Wednesday, February 27 from 1 to 3 pm ET
Thursday, February 28 from 2 to 4 pm ET
Friday, March 1 from 5 to 7 pm ET
Saturday, March 2 at Midnight and then again from 7 to 9 pm ET
Sunday, March 3 at 8 am ET and then again from 6 to 8 pm ET

Listen to the program on the Business Radio podcast site.

Harborside Positions Itself for the Future with Big Merger

Add to the list of companies making major moves in terms of expansion the legendary name of Harborside. They recently announced a reverse merger with Canadian-based Lineage Grow Company.

Harborside is not the first United States-based company to use a reverse merger to take advantage of the more advanced Canadian markets, and they won’t be the last. “US-based cannabis companies are increasingly taking advantage of the robust Canadian capital markets,” Nanette Heide, co-chair of the private equity practice at Duane Morris LLP and the attorney who represented Harborside in the deal, told The Marijuana Times. “The transactions are somewhat complex in structure, but executed well can provide ready access to capital for growth and expansion.”

To read the full text of this article, please visit the Marijuana Times website.

The 2018 Farm Bill Preserves FDA Right to Regulate Cannabis Products

Last year was a record year for cannabis. Canada passed the Cannabis Act, making adult-use cannabis legal there. The FDA approved a cannabidiol-based medicine, Epidiolex. And the President signed the Agriculture Improvement Act of 2018, aka the 2018 Farm Bill, into law on December 20, 2018.

While the 2018 Farm Bill granted the U.S. Department of Agriculture the ability to regulate hemp, it also preserved the right for the U.S. Food and Drug Administration (FDA) to regulate products containing cannabis or cannabis-derived compounds. The FDA regulates products such as human and animal drugs, biological products, cosmetics, food and animal feed, among other things. So any inclusion of cannabis or cannabis-derived compounds, like CBD, in any of those types of products would be regulated by the FDA. The FDA has stated that this is true regardless of the source of the cannabis substance, be it hemp or marijuana.

Read the full Duane Morris alert.

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The opinions expressed on this blog are those of the author and are not to be construed as legal advice.

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