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California Court Blocks State-Issued Grow Permit Citing Federal Cannabis Ban


A California appeals court recently ruled that property owners have the right to block cannabis transport on easements, prioritizing federal cannabis prohibition over state legalization.

The court’s decision stated that property owners cannot be compelled to allow cannabis transportation over an easement on their property, even if a local government has granted a license to a cannabis operation. The judges emphasized that despite California’s approval of cannabis at the state level, federal restrictions on cannabis take precedence.

In a unanimous ruling on Oct. 29, a three-judge panel at California’s Second District Court of Appeal declared that JCCrandall, LLC, which owns a half-mile easement in Santa Barbara County, has the right to object to cannabis transport across its land.

The court cited federal cannabis regulations in support of JCCrandall’s objections, overruling the county’s decision to issue a conditional use permit to Santa Rita Holdings, Inc. for cannabis cultivation on 2.5 acres accessible only via the easement.

The court’s opinion, authored by Presiding Justice Arthur Gilbert and concurred by Associate Justices Kenneth Yegan and Hernaldo Baltodano, stated, “Many Californians assume that cannabis is legal in the state due to Civil Code section 1550.5. However, cannabis remains illegal in California under federal law.”

This ruling overturned a lower court decision that had upheld the county’s approval of the permit for cannabis cultivation near JCCrandall’s property, sparking a legal battle. JCCrandall argued that the easement deed and federal law prohibited cannabis activities on the land without their consent, which was not granted to the grower.

The appellate court disagreed with the trial court’s ruling, deeming JCCrandall’s right to control access to their property a fundamental vested right. The court emphasized the property owner’s prerogative to exclude others, especially for actions that violate federal law.

By setting a higher standard of review, the appellate court challenged the county’s decision-making process, highlighting the conflict between state legalization of cannabis and federal prohibition under the Controlled Substances Act.

The judges emphasized in their opinion, “We reverse because, under federal law, cannabis is illegal in California and throughout the United States.” The court’s decision could impact California’s cannabis industry and potentially impose new limitations on property access for cannabis businesses.

Although a request for comment from Santa Barbara County’s counsel was unanswered, this ruling could have significant implications for the cannabis industry in California and the ongoing conflict between state and federal cannabis laws.



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