(Credit: Kyle/Adobe Stock) Federal Judge Affirms Creditor's Motion to Enforce $6.4M Garnishment Against Cannabis Retailer
"The fact that there is considerable disagreement among courts as to how to treat cases that implicate marijuana businesses that are legal at the state level is not an 'extraordinary circumstance' that warrants relief under Rule 60(b)(6). For a Rule 60(b)(6) motion to prevail, the relief granted must be necessary to accomplish justice," U.S. District Judge Brendan A. Hurson wrote for the District of Maryland said.
March 08, 2024 at 04:55 PM
3 minute read
A federal judge in Maryland has denied debtors' attempts to vacate a $6.4 million garnishment order under the guise that the contract suit was outside of federal court jurisdiction due to the involvement of marijuana—an illegal substance.
U.S. District Judge Brendan A. Hurson for the District of Maryland denied Mackie Barch and Trellis Holdings' motion to vacate the court's charging order against Trellis' membership interest in garnishee Culta, concluding that relief wasn't warranted under Federal Rule of Civil Procedure 12(b)(4), because the charging order wasn't void for lack of jurisdiction. Additionally, the debtors failed to show that extraordinary circumstances existed, according to Hurson's March 5 decision.
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