Tampa Firm Says Civil Rights Violated in Pot License Fight
The lawsuit is the latest effort by Louis Del Favero Orchids Inc. to enter the highly restricted medical marijuana market in Florida, where operators have sold licenses for upward of $50 million.
June 26, 2019 at 01:37 PM
6 minute read
A Tampa-based orchid grower has filed a federal civil rights lawsuit against the Florida Department of Health and several current and former state officials, alleging constitutional due-process violations related to the nursery's attempt to get a medical marijuana license.
The lawsuit, filed last week in Tallahassee by prominent Jacksonville civil rights lawyers William Sheppard and Elizabeth White, is the latest effort by Louis Del Favero Orchids Inc. to enter the highly restricted medical marijuana market in Florida, where operators have sold licenses for upward of $50 million.
But the federal complaint adds a new twist, by seeking unspecified monetary damages not only from the state but from the individuals named in the lawsuit: Surgeon General Scott Rivkees and his predecessor, Celeste Philip; Office of Medical Marijuana Use Director Courtney Coppola and her predecessor, Christian Bax; and 11 others, identified as “John Doe #1-11,” who allegedly played a role in the health department's decisions not to grant the orchid grower a license.
Del Favero has waged a yearslong legal battle in pursuit of a license, with a pile of cases pending in Tallahassee circuit court and a state appellate court as the nursery's owners have grown increasingly frustrated over health officials not allowing new applicants to gain access to what some analysts predict could be one of the country's most-lucrative medical marijuana markets.
“Totally exasperated,” David Vukelja, one of Del Favero's owners, told The News Service of Florida in a telephone interview.
“I can be as patient as the next guy. If someone were to say they're going to open the application process come September or November, then we'd have that to rely on. But that hasn't happened to date,” Vukelja, who is also Del Favero's general counsel, said. “I guess we can only take so much. We're not going to stand around like sheep waiting for you to tell us when you're going to open the door for us.”
Florida officials first began issuing licenses to medical marijuana operators in 2015, after state legislators authorized noneuphoric cannabis for patients with severe epilepsy or cancer.
The state issued more licenses following voter approval in 2016 of a constitutional amendment that broadly legalized medical marijuana. Under the amendment, state officials were to begin registering an unspecified number of “medical marijuana treatment centers” by Oct. 3, 2017.
A 2017 state law, aimed at implementing the amendment, required health officials to issue 10 new licenses to applicants that met certain requirements. The law also authorized additional licenses, as the number of Florida patients increased.
Overall, the state has issued licenses to 22 operators, including eight new operators who were granted licenses this year. All of the currently licensed firms originally applied under the 2015 law.
But more than 18 months after the deadline in the constitutional amendment, health officials have not started accepting applications from potential operators that may not have participated in the earlier process.
Under the 2017 law, health officials have to give special preference for up to two licenses to applicants that “own one or more facilities that are, or were, used for the canning, concentrating, or otherwise processing of citrus fruit or citrus molasses and will use or convert the facility or facilities for the processing of marijuana.” Following passage of the law, Del Favero spent $770,000 to purchase property in Pinellas County that met the requirements for the citrus preference.
Del Favero tried to register as a medical marijuana operator following an October 2018 court ruling, in an unrelated case, that found the 2017 law was “inconsistent” with the constitutional amendment. The state is appealing that ruling.
But health officials ignored Del Favero's attempts to get a license, while continuing to whittle the number of available licenses and thereby giving the new operators a competitive advantage, the orchid grower's lawyers argue in court documents.
The health department's failure to review the grower's application while granting other licenses allowed “others to 'leapfrog' over Del Favero's rights,” Del Favero's lawyers wrote in Thursday's 38-page federal court filing.
“These actions fail to comport with the basic requirements of due process,” the lawyers added.
Del Favero's attorneys are also relying in part on a Florida law that requires state agencies to issue licenses within 90 days after receipt of completed applications. Under the law, any application not approved or denied within the three-month period is considered approved.
But state health officials contend that, because they have not opened the application process, Del Favero is not eligible for a license.
“No such dates or deadlines have been published by the department yet,” Department of Health General Counsel Louise St. Laurent, who is also named in the lawsuit, wrote to Del Favero's lawyers in January. “Thus, there has not been, nor is there any, open application period. Accordingly, Del Favero's purported application was premature, untimely, and did not trigger any obligation for the department to take action.”
Del Favero has blasted the health department for granting eight licenses to applicants who lost out in the first round of licensing in 2015 and is challenging the licenses at the First District Court of Appeal.
The eight applicants who were granted licenses this spring “were the least qualified” of those vying for licenses in 2015, said Vukelja.
“Now all of a sudden, mysteriously, all of them get licenses,” he said. “With that, we pretty much reached the end of our rope. I'm tired of being told that no one in the state of Florida is responsible for their [health officials'] abject refusal to do what the constitutional amendment and the Florida statutes required them to do. I'm going to hold them to task, if no one else will.”
Del Favero has followed the Constitution and the statute, Vukelja said.
“In the meantime, we're told go stand in a corner and wait. We'll open the application process some day,” he said, adding that he's “not wild about litigation.”
John Lockwood, a lawyer who represents medical marijuana operators and license seekers, suggested Del Favero needs to be patient.
In the new state budget signed by Gov. Ron DeSantis, health officials received funding and authority to proceed with rulemaking that will allow the application process to move forward, Lockwood said.
Lockwood accused Del Favero of trying to get a license “by fiat,” instead of waiting and “participating in the competitive process like everyone else.”
“That is not how these things work,” he said.
Dara Kam reports for the News Service of Florida.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllMiami Firm Reaches $1.9M Settlement for Protester's Injuries, Pursues Class Action for Others
COVID-19 Death Suit Against Nursing Home Sent to State Court, 11th Circuit Affirms
Trending Stories
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250