Despite the legalization of marijuana in many states, the drug remains illegal under federal law, and this distinction has significant legal implications. A recent ruling by the U.S. Court of Appeals for the Sixth Circuit highlights this issue, declaring that a marijuana contract is not enforceable in federal court due to the illegal nature of the agreement.
The case involves a Michigan marijuana grower, Hello Farms, which entered a contract with GR Vending and CURA MI to supply marijuana. When GR Vending breached the contract, Hello Farms sued and was awarded $31.8 million by a jury. However, the defendants argued that the contract was illegal under federal law, and therefore, the district court erred in not granting them judgment as a matter of law.
The appeals court agreed, citing that federal law prohibits the growth, distribution, and possession of marijuana, and that federal courts cannot enforce agreements to commit federal crimes. This ruling underscores the need for a more nuanced approach to marijuana policy, where states are allowed to experiment with different approaches while still complying with federal law.
In order to achieve true marijuana federalism, the federal government must take steps to make state experimentation legal, such as ending the criminalization of conduct that is legal under state law. This approach was used during the end of Prohibition, and it is the only way to ensure a marijuana federalism that is free from the distortions caused by federal prohibition.
