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Judge Concludes Pasadena Acted Properly, Rules Against Claim by Cannabis Operator in Lawsuit

SweetFlower LLC’s application was rejected in 2019

Published on Tuesday, March 2, 2021 | 12:08 pm
 

Last week, a Los Angeles Superior Court judge ruled against a cannabis company that claimed Pasadena’s permitting process was unfair and illegal.

Sweetflower LLC’s application was rejected by the City Council after city staff deemed the application incomplete because the company’s location map was not prepared by a licensed surveyor.

“We are pleased that a Los Angeles Superior Court Judge ruled for the City and against SweetFlower on Thursday, February 25, 2021, denying SweetFlower’s challenge to the City’s cannabis business permitting process, the framework of which was approved by Pasadena voters in 2018,” said a statement issued by the city.

“The court decision last week concluded that City staff acted properly in establishing certain permitting processes, and the court rejected a series of SweetFlower’s arguments challenging the fairness in the process,” according to the statement.

The company had hoped to set up shop in District 3 in Old Pasadena.

In June 2018, voters passed Measure CC which allows up to six cannabis retailers to operate in Pasadena, one in each of six of the council’s seven districts. Voters also allowed the council to retain the authority to amend existing ordinances and adopt future ordinances regarding commercial cannabis business activities.

SweetFlower, along with Atrium, Harvest, Tony Fong, MedMen and Integral, beat out more than 100 other applicants for the chance to advance in the city’s cannabis selection process. 

Harvest was granted a conditional use permit (CUP) for District 3 in Old Pasadena. Atrium filed a lawsuit and accused the city of ignoring its own ordinance.

Each of the applicants paid the city a $14,000 application fee.

In Dec. 2019, the City Council tabled a motion that would have changed the law to allow up to three dispensaries — not one — to operate in each of the city’s seven council districts. If the motion had passed, SweetFlower would have been allowed back into the process.

Since being removed from the running, SweetFlower’s Tim Dodd has notified the city that MedMen was in violation of the city’s process because there had been a material change in the organization’s leadership.

Dodd did not reply to a request for comment regarding this story. 

The allegations led to a city investigation that resulted in MedMen’s removal. 

So far, only Tony Fong and Integral have received approval to open.

Last month, another lawsuit by a cannabis operator suing the city to invalidate its cannabis selection process dropped its lawsuit after an appeals court ruled that an anti-SLAPP motion against the operator could move forward.

WOW Health and Wellness filed a lawsuit after failing to move forward in the city’s cannabis selection process. The lawsuit attempted to invalidate Pasadena’s entire process.

A SLAPP, or strategic lawsuit against public participation, is a lawsuit intended to censor, intimidate and silence critics by burdening them with the cost of a legal defense until they abandon their criticism or opposition. 

In March, Atrium dropped its lawsuit against the city. Pasadena is seen as a desirable location among cannabis business owners.

The city believes it acted appropriately in the process and is pleased the trial judge agreed, the city’s statement said. 

“The court’s decision validated City staff’s actions and our process, noting that ‘the short answer is that the Planning Director’s statements to the Board and City Council were correct,’ according to the statement. “The City will continue to defend its position in this litigation, if appealed.”

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