(Photo: Getty Images)

Neighbors of a Sonoma County marijuana farm have sued the property operator and the bank that holds the note to the property for alleged damages under federal racketeering laws.

Nine residents living on Herrerias Way outside of Petaluma claim the marijuana grown by Green Earth Coffee on neighboring property generates an overpowering “skunk-like stench” that permeates their homes, hinders outdoor activities and compounds various neighbors' health problems. Some neighbors also cite the drone of a running generator.

The residents are seeking damages under the Racketeer Influenced and Corrupt Organizations Act, or RICO, the federal statute more often associated with organized crime prosecutions. The suit names Green Earth Coffee, company owner Carlos Zambrano, property owner Flying Rooster and deed of trust holder Exchange Bank as defendants.

The complaint, filed in the U.S. District Court for the Northern District of California, also alleges nuisance claims as well as violations of California's unlawful business practice statute, the state's Drug Abatement Act and Sonoma County statutes.

“Defendants' operation of the Cannabis Enterprise through repeated acts of racketeering has directly and proximately injured plaintiffs' property,” the plaintiffs' lawyers, Kevin Block and Roman Block of Block & Block in Napa, wrote in the complaint. “The open and ongoing commission of federal crimes near plaintiffs' homes further diminishes their market value by causing potential buyers to fear associated criminal activity or by otherwise making the homes less attractive to potential buyers.”

Zambrano could not be reached for comment. Greg Jahn, Exchange Bank's executive vice president, did not immediately return a message Tuesday.

With cannabis still classified as an illegal drug by the federal government, neighbors of marijuana grows in legalized states have increasingly turned to federal racketeering statutes, with their triple damages, with mixed success.

The U.S. Court of Appeals for the Tenth Circuit last year reinstated claims brought by landowners near a Colorado grow. A federal judge in Oregon last week dismissed RICO claims brought by grow-site neighbors, saying the plaintiffs had failed to show they had suffered financial harm.

At least three other RICO actions involving cannabis operations in California have been filed in recent years—one in Kern County, another in Berkeley and the third in Oakland. Plaintiffs in the suits in Kern County and Berkeley were cannabis operators who accused government officials of conspiring against them. In the Oakland case, a magistrate judge dismissed the claims against the owners of a rental space facility that had been converted into a marijuana operation.

Sonoma County, renowned for its wineries and vineyards, has been home to a sometimes contentious debate over whether and where cannabis cultivation should be allowed. The Herrerias Way neighbors allege that Green Earth Coffee has been growing marijuana without a county permit. A county spokeswoman confirmed that Green Earth Coffee was issued a five-day notice on May 29 to cease cannabis operations at the site near the Herrerias Way.

Green Earth Coffee has applied for a conditional use permit to grow marijuana on the site, but that permit has not been issued, the spokeswoman said.

 

The complaint is posted below:

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