U.S. Wins Bid to Dismiss Oakland Suit Defending Pot Clubs

The Obama administration won a bid to dismiss a lawsuit by the city of Oakland, California, defending permits for medical marijuana clubs, including a local pot “superstore” federal prosecutors are trying to shut.

U.S. Magistrate Judge Maria-Elena James in San Francisco ruled that courts don’t have jurisdiction over the claims in the lawsuit, and it had to be dismissed, according to a court filing today.

Oakland sued the federal government after prosecutors filed a forfeiture case to seize property housing the Harborside Health Center, a six-year-old dispensary with annual gross revenue of $20 million that offers more than 70 types of marijuana and cannabis concentrate such as hashish, as well as home delivery and product promotions. Prosecutors called the center a “superstore” serving 100,000 customers in violation of federal drug law.

The case is City of Oakland v. Holder, 12-05245, U.S. District Court, Northern District of California (San Francisco).

To contact the reporter on this story: Karen Gullo in San Francisco at kgullo@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net

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