The Supreme Court is expected to give a ruling on a case involving hemp. This is the first time since the 2018 Farm Bill was enacted that the court will be ruling on any hemp-related case. This farming measure federally legalized the sale and production of hemp and its derivatives.
This bill distinguishes marijuana from hemp by categorizing hemp as cannabis that doesn’t contain more than 0.3% THC. THC is one of the two primary compounds found in marijuana plants, with the other being CBD. Unlike THC, however, CBD doesn’t induce a high when ingested. CBD is one of hemp’s primary derivatives.
The case in question, Medical Marijuana Inc. et al v. Douglas J. Horn, focuses on whether manufacturers can legally be held responsible for an individual’s lost job benefits and earnings under the Racketeer Influenced and Corrupt Organizations Act (RICO). RICO is focused on fighting organized crime by allowing the justice system to prosecute any persons involved in criminal activities.
This act was enacted in 1970 and allows the federal government to prosecute persons who take part in racketeering activity. This includes criminal offenses such as bribery, drug trafficking and fraud. The statute also permits severe penalties, which includes treble damages. This allows those affected to receive at least three times the amount of actual damages, combined with attorney’s fees.
The plaintiff in the case was laid off from his job after failing a random drug test. He claims to have consumed a CBD product that had been advertised to be THC free. This was the basis of the plaintiff’s state law and RICO claims against the companies that manufactured the CBD product.
Douglas J. Horn, former commercial truck driver and plaintiff in this case, argues that his lost benefits and earnings qualify as “property or business” damages, which can be recovered under RICO. At first, Horn’s claim was dismissed by a federal district court, which sided with the companies and argued that RICO didn’t cover the losses in question. This ruling was repealed by the Second Circuit Court of Appeals, which also reinstituted the RICO claim.
The U.S. Supreme Court has now taken up the case. If this court upholds the ruling by the Second Circuit court, Horn could be awarded treble damages.
In other news, the U.S. Hemp Roundtable presented a brief supporting the defendants. In their amicus curiae, they argue that it wasn’t Congress’ intention to have RICO deal with personal injury losses.
Many cannabis industry actors, including Software Effective Solutions Corp. (d/b/a MedCana) (OTC: SFWJ), are likely to await the decision of the Supreme Court since it could have broader ramifications for the industry.
NOTE TO INVESTORS: The latest news and updates relating to Software Effective Solutions Corp. (d/b/a MedCana) (OTC: SFWJ) are available in the company’s newsroom at https://cnw.fm/SFWJ
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