Retaliation Claims Add Fuel to the Fire
In a stunning turn, the lawsuit alleges Newton retaliated against Ascend and Redi for challenging the fees. The city demanded payment under the original agreements—despite their renegotiation—and Mayor Ruthanne Fuller publicly accused them of shortchanging taxpayers.
“The mayor knows full well these fees are illegal,” the complaint asserts, calling the city’s actions “bad faith.”
What’s at Stake?
The dispensaries are not just seeking refunds—they want the court to declare that Newton cannot collect fees without proving they are tied to real costs. The lawsuit also demands damages for breach of contract, unfair dealing, and unjust enrichment.
Garden Remedies, the first to sign a host community agreement in 2018, paid nearly $1.7 million in fees before renegotiating last year. Ascend and Redi, who had similar percentage-based agreements, paid roughly $493,000 and $200,000, respectively.
A Growing Statewide Battle
Newton isn’t the only Massachusetts city facing pushback from cannabis businesses. Other dispensaries have sued over similar fees, including in Great Barrington and Gloucester. The same law firm representing the Newton retailers, Todd & Weld LLP, has taken on those cases as well—winning a settlement in Gloucester last year.
Howard Cooper, the retailers’ attorney, framed the case as a fight for fundamental rights.
“Challenging the government when it unlawfully taxes you is a basic American freedom,” Cooper said Monday.
Newton officials have yet to comment on the lawsuit, but with millions on the line and a precedent at stake, this battle over cannabis impact fees is far from over.
