Michigan Appeals Court Allows Challenge to Marijuana License Awards in Royal Oak

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A Michigan state appeals court has granted two Detroit-area companies another shot at challenging the validity of marijuana retail licenses awarded by the city of Royal Oak. The court found that the city violated the state’s open meetings law during the selection process.

On Wednesday, a three-judge panel ruled that while Royal Oak did not violate due process or the state’s marijuana law, it did breach the Michigan Open Meetings Act (OMA) when selecting applicants for the city’s cannabis licenses. The court rejected arguments from the plaintiffs, Exclusive Capital Partners LLC and Quality Roots LLC, regarding vagueness in the city’s cannabis ordinance, but determined that the city’s closed-door sessions involving city officials in the licensing process were improper.

Judge Noah P. Hood, writing for the panel, explained that while the lower court’s decision to dismiss the case was upheld in most respects, the violation of the open meetings law required further review. “We therefore reverse the circuit court’s decision regarding the [open meetings] violation and remand for the circuit court to address whether invalidation of the license awards is appropriate,” Judge Hood stated.