Maker of CBD products asks court to decide

Maker of CBD products asks court to decide

The Petitions of the Week column highlights a selection of cert petitions recently filed in the Supreme Court. A list of all petitions we’re watching is available here.

Organized crime, from the mafia to small-time money laundering schemes, often evades criminal prosecution. To bolster efforts to fight organized crime, Congress passed the Racketeer Influenced and Corrupt Organizations Act, known as RICO, more than 50 years ago.

In addition to the criminal penalties for violating RICO, the law also authorizes private individuals to bring civil lawsuits for an injury to their “business or property” as a result of the defendant’s “racketeering activity,” which the law defines broadly to include a wide range of criminal offenses.

This week, we highlight petitions that ask the court to consider, among other things, whether someone can sue under RICO to recover lost earnings.

Marketed as “a revolution in medicinal hemp-powered wellness,” Dixie X is a CBD supplement that claims to offer a variety of health benefits. After learning about Dixie X in a magazine, Douglas Horn began using the supplement in 2012 to soothe pain and inflammation from a car accident. Although the ad claimed that the supplement does not contain any THC (the active ingredient in marijuana),

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Satisfied, Horn began using Dixie X. Shortly after, he failed a random drug test at work and was fired. Suspecting the supplement, Horn sent a batch to an independent lab, which found that the product contained THC.

Horn went to federal court in New York, arguing that the company that sold Dixie X, Medical Marijuana, Inc. – which, despite its name, deals only in hemp-based CBD products – was responsible for his termination. Part of his lawsuit alleged violations of state law, including a claim that he was fraudulently induced to purchase the supplement while unaware of its risks. But Horn also argued that the company injured his “business or property” under RICO by conspiring to commit federal mail and wire fraud that resulted in the loss of his salary.

In Medical Marijuana, Inc. v. Horn, the maker of Dixie X asks the justices to grant review and reverse the 2nd Circuit’s ruling. The company argues that economic harm stemming from a personal injury has no business, so to speak, under RICO. “If quintessential personal injuries count as injuries to ‘business or property’ just because economic damage inevitably results,” the company writes, “Congress’ careful limitation on civil RICO claims would be toothless.”

Read the Rest here at ScotusBlog

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A list of this week’s featured petitions is below:

Yim v. City of Seattle, Washington
23-329
Issue: Whether Seattle’s restriction on private owners’ right to exclude potentially dangerous tenants from their property violates the 14th Amendment’s due process clause.

Amer v. New Jersey
23-351
Issues: (1) Whether a defendant is always “unable to stand trial” under Article VI(a) of the Interstate Agreement on Detainers while a pretrial motion is pending; and (2) whether a defendant has been “brought to trial” within 180 days of his request for final disposition of charges under Article III(a) of the agreement at the point when jury selection begins.

Medical Marijuana, Inc. v. Horn
23-365
Issue: Whether economic harms resulting from personal injuries are injuries to “business or property by reason of” the defendant’s acts for purposes of a civil treble-damages action under the Racketeer Influenced and Corrupt Organizations Act.

Bhattacharya v. State Bank of India
23-390
Issue: Whether, to establish a “direct effect in the United States” under 28 U.S.C. § 1605(a)(2), a plaintiff must make an extratextual showing that either the sovereign engaged in a U.S.-based “legally significant act,” or that the U.S. effects were “legally significant” in addition to being direct.

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Supreme Court Asked to Resolve Federal Drug Law v. State Medical Marijuana

Supreme Court Asked to Resolve Federal Drug Law v. State Medical Marijuana

The U.S. Supreme Court has been asked to address whether federal drug law that criminalizes possession of marijuana invalidates state orders requiring employers and their workers’ compensation insurers to pay for medical marijuana prescriptions for employees injured on the job.

However, before it fully takes on the question, the high court has asked the Solicitor General, who represents the federal government before the high court, for guidance in light of the Supremacy Clause of the U.S. Constitution that gives federal statutes primacy over state laws.

Five state supreme courts have addressed whether the reimbursement of medical marijuana costs is permissible, with two ruling yes and three ruling no. The Supreme Court is being asked to resolve this split in authority. Under the federal Controlled Substances Act (CSA), the manufacture, distribution, or possession of marijuana is a criminal offense, with the exception of when the drug is part of a Food and Drug Administration research study.

The Supreme Court’s involvement is related to two cases from Minnesota — Bierbach v Diggers Polaris and State Auto/ United Fire & Casualty and Musta v. Mendota Heights Dental Center and — in which injured employees challenged their employers and their insurers for refusing to reimburse them for their medical marijuana prescriptions.

Musta suffered a neck injury in her work at a medical facility while Bierbach was injured in an accident while working for an all-terrain vehicle dealer.

Read More here –> READ IT

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Biden DOJ takes IRS side in marijuana 280E tax argument

Biden DOJ takes IRS side in marijuana 280E tax argument

The Biden DOJ took the side of the IRS in the marijuana 280E tax arguement that state-legal cannabis businesses CAN be investigated by the IRS for probable violations of Section 280E of the tax code.

It is believed to be one of the first times the U.S. Department of Justice under the new administration has filed an opinion in a marijuana court case.

The Feb 2021 release of the filing was made by DOJ attorneys, led by acting Solicitor General Elizabeth Prelogar.

“That is precisely the federal government’s position and has been for many years,” Thorburn said – an attorney representing a medical marijuana dispensary. “We were hoping that the Biden administration would soften that stance. “It, unfortunately, has not and is doubling down.”

Section 280E of the IRS tax code prohibits marijuana businesses from taking traditional business deductions because the plant is listed as a Schedule 1 drug under the federal Controlled Substances Act.

Industry leaders are optimistic that federal marijuana law reform could come in the next two years because of the Democratic – control of the U.S. House, U.S. Senate and presidency.

QUESTION PRESENTED

For income tax purposes, the Internal Revenue Code disallows any deduction or credit for business expenses incurred in carrying on a trade or business that “consists of trafficking in controlled substances” in violation of federal or state law. 26 U.S.C. 280E. Marijuana is a controlled substance, and federal law prohibits trafficking it. 21 U.S.C. 812(c), 841(a)(1). Petitioners own and operate a marijuana dispensary in Colorado, which has decriminalized marijuana in some respects under state law. The question presented is as follows:
Whether the court of appeals correctly affirmed the district court’s decision to enforce several third-party summonses issued by the Internal Revenue Service to a Colorado state agency as part of an investigation into the accuracy of petitioners’ federal income tax returns, including whether petitioners claimed any business expense deductions disallowed by Section 280E.

Read the response here

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Recent Posts

Tag Cloud

2020 2021 BMMR CBD corruption. prosecutors dispensary DUI federal forfeiture gun rights hemp komornlaw lara law enforcement abuse laws legal Legalization marijuana Medical Marijuana Michigan michigan laws michigan news MMFLA MRA news police politics Recreational Cannabis science usa news

DISCLAIMER
This post may contain re-posted content, opinions, comments, ads, third party posts, outdated information, posts from disgruntled persons, posts from those with agendas and general internet BS. Therefore…Before you believe anything on the internet regarding anything – do your research on Official Government and State Sites, Call the Michigan State Police, Check the State Attorney General Website and Consult an Attorney – Use Your Brain.

Listen Live to the US Supreme Court

Listen Live to the US Supreme Court

Listen live to arguments in the Supreme Court.

On Monday, the Supreme Court is set to hear arguments over the phone for the first time ever due to the coronavirus pandemic; they’ll hear 10 cases remotely from now until May 13. But that’s not the only history being made on Monday, as the Supreme Court will also for the first time ever make the audio available to be listened to live, The Associated Press reports.

Listen Here at link below on NPR

https://www.npr.org/2020/05/03/848317039/listen-live-supreme-court-arguments-begin-monday

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US Supreme Court Press Releases Regarding the Justices and counsel will all participate remotely.

US Supreme Court Press Releases Regarding the Justices and counsel will all participate remotely.

The US Supreme Court will hear oral arguments by telephone conference on May 4, 5, 6, 11, 12 and 13 in a limited number of previously postponed cases.  The following cases will be assigned argument dates after the Clerk’s Office has confirmed the availability of counsel: 

18-9526, McGirt v. Oklahoma
19-46, United States Patent and Trademark Office v. Booking.com B.V.
19-177, Agency for International Development v. Alliance for Open Society International, Inc.
19-267, Our Lady of Guadalupe School v. Morrissey-Berru, and 19-348, St. James School v. Biel
19-431, Little Sisters of the Poor Saints Peter and Paul Home v. Pennsylvania, and 19-454, Trump v. Pennsylvania
19-465, Chiafalo v. Washington
19-518, Colorado Department of State v. Baca
19-631, Barr v. American Association of Political Consultants, Inc.
19-635, Trump v. Vance
19-715, Trump v. Mazars USA, LLP, and 19-760, Trump v. Deutsche Bank AG

In keeping with public health guidance in response to COVID-19, the Justices and counsel will all participate remotely. The Court anticipates providing a live audio feed of these arguments to news media. Details will be shared as they become available.

The Court Building remains open for official business, but most Court personnel are teleworking. The Court Building remains closed to the public until further notice.

The Court will use a teleconferencing system that will call counsel the morning of argument. All counsel for the cases to be argued that day will be called simultaneously at approximately 9:15 a.m. and will all be placed on a conference call with the Clerk of the Court, Scott Harris, to receive any last-minute instructions and to ask any remaining questions they may have. Once that briefing is completed, the phone lines for counsel will be muted, and counsel will remain on this same line until approximately 9:50 a.m. At that time, counsel will all be moved to the main conference call to await the beginning of argument.

At 10 a.m., the Justices will enter the main conference call, and the Marshal of the Court, Pamela Talkin, will cry the Court. The Chief Justice will call the first case, and he will acknowledge the first counsel to argue. Following the usual practice, the Court generally will not question lead counsel for petitioners and respondents during the first two minutes of argument. Where argument is divided and counsel represents an amicus or an additional party, the Court generally will not ask questions for one minute. At the end of this time, the Chief Justice will have the opportunity to ask questions. When his initial questioning is complete, the Associate Justices will then have the opportunity to ask questions in turn in order of seniority. If there is time remaining once all Justices have had the opportunity to question counsel, there may be additional questioning.

Once the time for the first counsel’s argument has expired, the Chief Justice will thank counsel for their argument, and acknowledge the next attorney. This process will continue until argument in the case is complete. Counsel for the petitioner in each case will be allotted three minutes for rebuttal. If there is a second case to be argued that day, the Chief Justice will call that case promptly after the end of the first argument, and the same process will be followed. The Marshal will announce the conclusion of arguments.

Monday, May 4: Booking.com trademark

10 a.m. ET: U.S. Patent and Trademark Office v. Booking.com B.V.

Summary: Generic terms cannot be trademarked, but Booking.com wants to trademark its name.This case is about whether generic terms can become protected trademarks by the addition of a generic “.com” domain.

Attorneys: Government attorney Erica Ross, Booking.com attorney Lisa Blatt.


Tuesday, May 5: Aid for HIV program

10 a.m.. ET: USAID v. Alliance for Open Society International

Summary: A new twist on an old case. In 2013, the justices said the government had violated the First Amendment by making funding for U.S. nonprofits contingent on those nonprofits trumpeting the government’s policy position on key issues. The case is back, but this time the question before the court is whether it’s unconstitutional if the government makes funding contingent for foreign-based affiliates of those same U.S. nonprofits.


Wednesday, May 6: Birth control access & Robocalls

10 a.m.ET: Little Sisters of the Poor v. Pennsylvania consolidated with Trump v. Pennsylvania

Summary: The court considers a Trump administration rule that would allow employers with religious or moral objections to birth control to limit their employees’ access to free birth control under the Affordable Care Act.

11 a.m. ET:Barr v. American Association of Political Consultants

Summary: In 1991, Congress passed a law that prohibits most robocalls. In 2015, Congress created an exception for government debt collection. Political groups, which want to use robocalls to raise money and turn out voters, are challenging the act as a violation of their First Amendment free speech rights.


Monday, May 11: Native American land & Religious freedom

10 a.m. ET: McGirt v. Oklahoma

Summary: On the surface, this case is about whether states, like Oklahoma, can prosecute members of Native American tribes for crimes committed in the historical bounds of tribal land. But it has implications for state power over thousands of miles of land in Oklahoma that has historically belonged to Creek, Cherokee, Seminole, Chickasaw and Choctaw tribes.

11 a.m.ET: Our Lady of Guadalupe School v. Morrissey-Berru consolidated with St. James School v. Biel

Summary: A freedom of religion case that tests whether lay teachers at parochial schools are protected by federal laws barring discrimination based on race, gender, age and disability; or whether, as the schools here maintain, their lay teachers are exempt from the protection of those laws. The case has potential implications for the millions of Americans employed not just by parochial schools but also by religiously affiliated hospitals, charities and universities.


Tuesday, May 12: Trump finances

10 a.m. ET: Trump v. Mazars consolidated with Trump v. Deutsche Bank AG; Trump v. Vance

Summary: These cases involve subpoenas for some of Trump’s pre-presidential financial records. Two consolidated cases — Trump v. Mazars and Trump v. Deutsche Bank — ask whether Congress has the power to subpoena the president’s personal records except during an impeachment proceeding; Trump v. Vance addresses a New York grand jury subpoena for those same records in the course of a criminal investigation.


Wednesday, May 13: Faithless electors

10 a.m. ET: Chiafalo v. Washington; Colorado Department of State v. Baca

Summary: Both cases involve so-called faithless electors — Electoral College delegates who fail to vote for the presidential candidate they were pledged to support. At issue is whether states can punish or remove such electors in order to ensure that the state’s electors accurately represent the state’s vote.

LINKS

Date Posted

Subject

February 27, 2020

Trump v. Mazars (19-715), Trump v. Deutsche Bank AG (19-760) (Consolidated)

February 27, 2020

Trump v. Vance (19-635)

January 28, 2020

June Medical Serv. v. Gee, Sec., LA Dept. of Health (18-1323), Gee, Sec., LA Dept. of Health v. June Medical Serv. (18-1460) (Consolidated)

December 10, 2019

Espinoza v. Montana Dept. of Revenue (18-1195)

October 23, 2019

NY State Rifle & Pistol v. City of New York, NY (18-280)

August 02, 2019

Dept. of Homeland Security v. Regents of Univ. of CA (18-587), Trump, President of U.S. v. NAACP (18-588), McAleenan, Sec. of Homeland Security v. Vidal (18-589) (Consolidated)

August 02, 2019

R.G. & G.R. Harris Funeral Homes v. EEOC (18-107)

August 02, 2019

Bostock v. Clayton Cty., GA (17-1618), Altitude Express v. Zarda (17-1623) (Consolidated)

July 18, 2019

Lying in Repose of Justice Stevens

March 14, 2019

Dept. of Commerce v. New York, 18-966

February 19, 2019

Lamone v. Benisek, 18-726

February 19, 2019

Rucho v. Common Cause, 18-422

January 15, 2019

American Legion v. American Humanist Assn. (17-1717), Maryland-National Capital Park v. American Humanist Assn. (18-18) (Consolidated)

Listen Live: Supreme Court Arguments Begin Monday 5/4/20