Auburn Hills, MI – The City of Auburn Hills has filed a motion to dismiss a lawsuit filed by Jar Capital LLC, which alleges the city violated both state law and the U.S. Constitution when awarding cannabis licenses. The city asserts that Jar Capital’s claims lack merit andUSA should be dismissed, as the company has no legal right to a license under federal law.
The motion, filed Tuesday in the U.S. District Court for the Eastern District of Michigan, argues that the federal court cannot aid Jar Capital in violating the Controlled Substances Act (CSA), as cannabis remains federally illegal. The city also emphasized that it holds discretion in awarding cannabis licenses, and Jar Capital, a first-time applicant, did not meet the necessary qualifications to receive one.
“Jar Capital’s claim to a constitutional right for a license is unsubstantiated,” the city stated in the motion. “Federal and Michigan courts have consistently dismissed similar cases where disgruntled applicants seek judicial intervention after being denied by municipalities.”
The city further refuted Jar Capital’s equal protection claims, pointing out that the company failed to demonstrate how it was treated unfairly compared to other applicants. The city’s evaluation process, it argues, was consistent for all applicants, and Jar Capital did not score high enough to be granted a license.
Additionally, the city contends that Jar Capital’s complaint fails to demonstrate any violation of the Michigan Regulation and Taxation of Marihuana Act or the Michigan Zoning Enabling Act. The city also noted that Jar Capital lacks standing to challenge amendments to the zoning ordinance, as the company does not own property near the licensed locations.
The lawsuit, filed last month by Jar Capital, alleges that Auburn Hills violated an adult-use cannabis ordinance approved by voters in 2022. The ordinance required applicants to have a pre-recorded interest in property within the city before September 9, 2022. Jar Capital claims the city awarded a license to Attitude Wellness LLC, which was involved in a separate lawsuit over the same requirement.
The city, however, maintains that even if a license awarded to Attitude Wellness were rescinded, Jar Capital would not be entitled to a license due to its low application score. Furthermore, the city argues that any federal court intervention would disrupt Michigan’s regulatory framework for recreational cannabis establishments.
“The requested relief would interfere with the state’s regulatory scheme,” the city’s motion concludes. “Federal court involvement in this matter is unnecessary and unwarranted.”
Jar Capital LLC is represented by J. Adam Behrendt, Debani T. Gordon Lehman, and Sinéad G. Redmond of Bodman PLC. The City of Auburn Hills is represented by Timothy S. Ferrand of Cummings McClorey Davis & Acho PLC.
The case, Jar Capital LLC v. City of Auburn Hills, is filed under case number 2:25-cv-10623 in the U.S. District Court for the Eastern District of Michigan.
