JEFFERSON CITY — The Missouri Supreme Court denied an appeal by a medical marijuana company whose license was previously denied.
The Supreme Court ruled unanimously that Mo CANN Do Inc.'s (MCD) medical marijuana license was rightfully denied because it had failed to include the proper paperwork with its application when it applied in 2019.
Judge Thomas C. Albus authored the unanimous opinion, which was issued last month.
MCD appealed an administrative decision denying its application for a medical marijuana cultivation license due to missing documentation.
The decision was based on the fact that MCD did not provide a certificate of good standing from the Missouri Secretary of State, a requirement under the regulations, according to the en banc opinion.
Despite receiving notice of deficiencies, MCD failed to rectify this issue, leading to the denial of its application.
In response, MCD argued that DHSS should have waived the requirement or notified them explicitly about the missing certificate. However, the regulations did not support MCD's claim for implicit waiver, and DHSS had followed procedural guidelines in notifying applicants of deficiencies.
Additionally, MCD's assertion of equitable estoppel, claiming DHSS's initial acceptance of their application implied compliance, was rejected due to the highly regulated nature of the marijuana industry and the importance of adhering to legal requirements.
The court's decision to uphold the denial of MCD's application was grounded in the regulatory framework's clear requirements.
Despite MCD's attempts to argue otherwise, the absence of a certificate of good standing was deemed a failure to meet the minimum standards for licensure.
The court emphasized the importance of adhering to regulations in a heavily regulated industry like marijuana cultivation to ensure public safety and compliance with both state and federal laws.
Overall, the court affirmed the administrative decision, stating that there was substantial evidence supporting the determination that MCD did not meet the minimum standards for licensure.
This decision notes the importance of regulatory compliance in industries subject to stringent oversight, particularly in emerging sectors like medical marijuana cultivation.
The Missouri Supreme Court upheld the state's decision to deny MCD a marijuana cultivation license due to the missing paperwork. Despite the argument that the state didn't specify the missing documents before denial, the court ruled in favor of the state's authority.
The decision noted the state's responsibility to regulate the industry for public safety, Albus found.
The ruling contrasted with a prior Court of Appeals decision favoring MCD, citing potential implications for awarding licenses to applicants who didn't meet standards.
The decision has implications for similar pending cases regarding marijuana business licenses in Missouri.
The judges ruled that MCD failed to meet the minimum standards for licensure by failing to include a certificate of good standing in its application.
MCD was represented by Eric M. Walter, Jeffery T. McPherson and Paul L. Brusati of Armstrong Teasdale in St. Louis.
The department was represented by Jason K. Lewis of the Attorney General's Office.
Attorneys for the parties declined to comment on the decision by the Supreme Court.
Missouri Supreme Court case number: SC100172