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In a dramatic turn of events, a Washington appeals court has upheld the revocation of a cannabis license, sending shockwaves through the state's cannabis industry. The Liquor and Cannabis Board's decision to strip Application Software Products Inc. of its license following eviction has survived a legal challenge, with a three-judge panel asserting that the decision was well-supported and not arbitrary.

Washington Business Pot License Evoke : Eviction Sparks License Woes

Application Software had secured a tier 3 cannabis license in 2018 after entering into a commercial property lease. However, their world came crashing down in July 2020 when a new landlord evicted them. Despite attempting a change of location in April 2021, the Liquor and Cannabis Board canceled the application upon learning of the eviction, citing the company's failure to maintain the premises as required.

Washington Business Pot License Evoke : Legal Battle Unfolds

March 2022 saw an administrative law judge granting summary judgment to the Liquor and Cannabis Board, solidifying the license revocation. Application Software contested the decision on appeal, arguing procedural irregularities and misinterpretation of the law. However, the panel swiftly dismissed these claims, emphasizing the company's failure to raise them before the agency.

Authority Limits and Eviction Fallout

The panel, while recognizing Application Software's dispute over the eviction, firmly declared that it was not their role to revisit the matter. The company's lack of appeal against the eviction order further weakened their stance. The panel focused solely on the evidence presented to the Liquor and Cannabis Board, highlighting the company's eviction and its failure to secure a temporary discontinuance or request a change of location beforehand.

Court Orders as Pillars of Decision

The panel underscored the significance of court orders pertaining to the eviction, deeming them crucial evidence supporting the Liquor and Cannabis Board's decision. It debunked Application Software's plea to question the validity of these orders, asserting that such inquiries were beyond the board's legislative authority.

Arbitrary Decision Allegations Dismissed

In a stunning revelation, the panel rejected claims that the decision was arbitrary or capricious. They contended that Application Software failed to meet the burden of proving that the Liquor and Cannabis Board acted unreasonably, emphasizing the company's admission during oral argument that the factors in the final order were part of a fair and impartial review.

Washington Business Pot License Evoke : Legal Battle Continues

David M. Otto of Martin Davis PLLC, representing Application Software, expressed dissatisfaction with the court's reasoning, asserting that the eviction should not have been disregarded in evaluating the license revocation. The Liquor and Cannabis Board remained unavailable for immediate comment.

Judges Cecily Hazelrigg, Ian Birk, and Linda Coburn presided over the panel.

Application Software Products is represented by David M. Otto, Richard M. Simpson, and Ben York of Martin Davis PLLC.

The Liquor and Cannabis Board is represented by Robert W. Ferguson and Ellen Range of the Washington State Attorney General's Office.