News

New Lawsuit Challenges Unconstitutional Bureaucratic Overreach by New York Cannabis Regulators

Creation of Unauthorized CAURD Licensing Category Has Delayed or Denied Licenses for Hundreds of Qualified Applicants 

On August 2, 2023, a complaint was filed in the New York Supreme Court seeking to reverse the state’s regression from bureaucratic oversight to bureaucratic overreach regarding the regulation of its adult-use cannabis market. Filed on behalf of four service-disabled veterans who planned to pursue adult-use dispensary licenses, the suit asserts they were unfairly prejudiced by the actions of the state’s Office of Cannabis Management (OCM) and Cannabis Control Board (CCB) when those agencies unconstitutionally assumed the Legislature’s role by supplanting their own social and economic policies for those of New York’s elected officials.

The complaint illustrates a common and concerning issue that has arisen in several East Coast states that have legalized recreational marijuana in recent years. Specifically, the institution of regulatory schemes of dubious legality that have delayed the creation and implementation of well-regulated and equitable cannabis markets as set forth in the legislation authorizing those markets. These transgressions have led authorities to spend their time and resources engaged in artificial and harmful enforcement actions against individuals simply attempting to avail themselves of legalization’s intended opportunities and benefits.

CAURD License Scheme Unauthorized by Legislature

In this case, the plaintiffs are challenging the OCM’s and CCB’s creation of an entirely new licensing category called the Conditional Adult-Use Retail Dispensary (the “CAURD”) license. As outlined in the complaint, those bodies improperly limited eligibility for this special, yet legally impermissible, license category to only “justice-involved individuals” who own a profitable “qualifying business.” Subsequently, they opened the adult-use retail dispensary application period for only those individuals that qualified as CAURD applicants. This action indefinitely postponed the licensing of hundreds of additional dispensaries necessary to satisfy consumer demand, including licenses the plaintiffs intended to seek.

Accordingly, the plaintiffs are asking the court to enter an order declaring OCM’s CAURD license an unconstitutional licensing category that violates New York’s Marihuana Regulation and Taxation Act and contravenes New York’s separation of powers doctrine. They also ask the court to indefinitely enjoin OCM and CCB from awarding or further processing any more CAURD licenses and/or authorizing any more CAURD licensees to open adult-use retail dispensaries.

On August 7, 2023, the court entered a temporary restraining order prohibiting OCM and CCB from awarding or further processing any more CAURD licenses and/or conferring operational approval upon any more provisional or existing CAURD licensees. The litigation remains pending.

Ansell’s dedicated Controlled Substances & Regulatory Law Practice Group has an in-depth understanding of the laws related to the production, sale, use, regulation, and legalization of controlled substances, including hemp, cannabis, and psychedelics. Controlled substances law remains a multifaceted and complex field with, at times, conflicting regulations from different governing bodies. Our attorneys are prepared to assist in all aspects of this emerging field. They are committed to helping our clients understand their rights and opportunities in this complex and evolving area of law. For additional information, please contact Joshua S. Bauchner at (973) 247-9000 or jbauchner@ansell.law.



New York’s Cannabis Control Board Approves New Regulations for Select Cannabinoid Products

During a contentious assembly late last month, New York’s Cannabis Control Board (“CCB”) approved emergency regulations limiting the amount of THC allowed in products containing potentially intoxicating hemp-derived cannabinoids and banning some cannabinoids altogether.

Under the approved regulations, edible products must have a 15-to-1 ratio of CBD to THC and are limited to no more than 10 milligrams of THC per package and 1 milligram per serving. Retailers are also forbidden from selling products with more than 0.5 milligrams of THC to anyone younger than 21.

The new rules also ban Delta-8 THC, THC-A, and THC-O.

Until recently, companies selling hemp-derived cannabinoids could legally sell products containing the same amount of THC as those sold at licensed adult-use dispensaries.

New York regulators hope the move will ultimately curtail the largely uncontrolled market of hemp-derived cannabinoids, encompassing intoxicating delta-8 and delta-9 THC, alongside CBD. However, in the process, thousands of tax-paying small businesses throughout the State were suddenly rendered illegal, risking raids, seizures, fines, and closure. The ever-shifting regulatory landscape in the State continues to challenge operators seeking to engage in legal sales. More litigation against the OCM is sure to follow, further delaying the development of a lawful marketplace.

Our Controlled Substances and Regulatory Practice attorneys understand the complex laws related to the production, sale, use, regulation, and legalization of controlled substances, including hemp, cannabis, and psychedelics. A multifaceted area of the law with conflicting regulations from different governing bodies, we help our clients navigate all aspects of this emerging field. We are committed to helping our clients understand their rights and opportunities in this evolving area of law.

Ansell.Law Welcomes New Attorney

Ansell.Law is pleased to announce that Nicole Benis has joined the firm’s Ocean office as an associate attorney. Her practice encompasses a range of complex commercial and civil litigation matters.

While earning her law degree from Seton Hall University School of Law, Benis served the Seton Hall Law community as a Student Mentor and a Student Bar Association member. She also served as a member of Seton Hall Law’s Center for Social Justice, Health Justice Clinic, representing clients in various matters. 

About Ansell.Law 

Ansell Grimm & Aaron, PC was founded in 1929 and has a long history of delivering for clients who come to us to resolve legal matters that are often urgent, stressful, and of great importance. A general practice law firm, we are powered by experienced attorneys who understand that the best outcome is the one that serves the needs of each client.

Ansell.Law Attorneys Secured Numerous Successful Client Outcomes in Q2 2023

Ansell.Law attorneys are laser-focused on achieving our clients’ goals. We listen to our clients and craft compelling legal strategies to preserve their business interests. A sampling of our recent successes follows. 

Commercial Real Estate

Jonathan Sherman, in collaboration with Melanie Scroble, successfully negotiated multiple commercial leases for cannabis retail in various cities, including Verona and East Orange, New Jersey. In a separate matter, Jonathan successfully completed a corporate restructure for his clients, enabling each LLC member to effectively execute a 1031 Exchange and achieve their desired financial goals.

Jonathan presented to over 100 realtors, providing valuable insights into using the 1031 Exchange process and Delaware Statutory Trust. Jonathan and Melanie Scroble partnered to deliver an informative Commercial Zoom series to more than 100 realtors, covering the acquisition, sale, and leasing of commercial real estate. 

Jonathan also shared his expertise at a Coldwell Banker roundtable. Engaging with over 50 residential and commercial brokers, the discussion revolved around the intricacies of buying multi-family properties in New Jersey. 

Litigation 

Joshua Bauchner, Layne Feldman, and Anthony Sango obtained dismissal of a counterclaim on behalf of our client, a well-known real estate development firm, in the Superior Court of New Jersey, Mercer County. The counterclaim alleged breach of contract, fraud, and negligent misrepresentation. AGA successfully argued that subsequent amendments to the parties’ original agreement defeated the defendants’ counterclaims as a matter of law, securing a dismissal with a prejudice precluding amendment.

Gabriel Blum and Seth Rosenstein secured summary judgment in favor of a firm client in a complex design and construction defect case. The firm convinced the Court that our client only provided job site materials and did not engage in construction work, contrary to the allegations in the Complaint. As New Jersey trial courts often disfavor granting summary judgment, this was a significant win for our client and saved them ongoing defense costs.

Anthony D’Artiglio and Joshua Bauchner successfully represented the purchaser of a substantial portion of an ice cream company’s assets with numerous locations throughout New York and New Jersey. The ice cream company entered into an assignment for the benefit of creditors proceeding where our client won the bid to purchase its IP and equipment while assuming multiple lease locations. We guided the purchaser through the sale’s confirmation, including addressing multiple issues related to liens, transfer of the IP, and landlord disputes.

Joshua Bauchner, Anthony D’Artiglio, and Brian Ashnault are representing a large property management company in a condemnation case in which a New York state agency is acquiring two permanent easements from a Bronx warehouse owned by the client. AGA is guiding its client through the pre-litigation stages of the condemnation process and seeks to secure a multi-million-dollar fair market value award in New York Supreme Court.

Joshua Bauchner, Layne Feldman, and Brian Ashnault obtained dismissal of a counterclaim filed against our client, a retail brokerage firm, in the Superior Court of New Jersey, Bergen County. The counterclaim sought a declaratory judgment regarding a brokerage listing agreement, deeming it unenforceable. AGA successfully argued that the counterclaim did not state sufficient facts and that the legal arguments failed as a matter of law, securing a dismissal with a prejudice precluding amendment.

Other litigation victories include:

  • Secured possession of a luxury home in Westchester County after years of litigation and compelled a highly favorable settlement, resulting in a windfall for clients and strong profit after selling the property to a third-party purchaser.
  • Obtained a highly favorable settlement for a contractor client after the homeowner sued, alleging breach of contract and consumer fraud in connection with constructing a pool deck. The firm’s efforts minimized the out-of-pocket costs for the contractor, with its insurance carrier paying most of the limited settlement sum.
  • Successfully prosecuted action on behalf of an automobile repair shop against a vehicle owner who refused to pay for charges after his insurance carrier failed to extend coverage. The settlement reached was significant and avoided the costs related to protracted litigation.
  • Initiated litigation against a multinational financial consultancy firm under the Fair Credit Reporting Act following the dissemination of inaccurate information concerning a client. The action was settled pre-litigation on favorable terms to the client.
  • Filed action on behalf of local businesses after a nationwide energy supplier substantially overbilled for provided electricity. After limited discovery, the firm’s efforts resulted in a substantial monetary payment to the local businesses.
  • Represented a local property developer in securing declaratory relief pertaining to a shopping center and certain master deed restrictions, permitting the construction and operation of a well-known gas station and convenience store at the subject property.

Congratulations to Joshua S. Bauchner on His Achievements as the New Jersey State Bar Association’s Cannabis Law Committee Co-Chair

Ansell Grimm & Aaron, PC congratulates shareholder Joshua S. Bauchner on his many achievements as co-chair of the New Jersey State Bar Association’s Cannabis Law Committee. Along with co-chair Lisa A. Gora, a partner at Epstein Becker & Green, Joshua led the Committee in making significant advancements, including:

  • Hosting eight CLEs at the Law Center on a range of cannabis-related topics.
  • Hosting three CLE panels at the State Bar Convention.
  • Expanding the Committee to include psychedelics.
  • Preparing two Reports and Recommendations to the New Jersey Cannabis Regulatory Commission on its initial Rules and Regulations.

The Committee also laid the groundwork for new initiatives in the 2023-2024 term, including promoting expungements of cannabis-related convictions and developing guidelines for Workplace Impairment Recognition Experts (WIREs).

We commend Joshua Bauchner and Lisa Gora, and all of their colleagues on the Committee, and thank them for their leadership and commitment to the practice of controlled substance and regulatory law. You can read their letter to the Committee here.

The New Jersey State Bar Association’s Cannabis Law Committee was formed to bring together attorneys to examine the many legal issues that stem from the medicinal and adult-use access to cannabis.

As one of the most rapidly evolving industries today, lawyers in the cannabis space must be educated on licensing, operations, and employment issues such as drug testing. Contact an attorney in our Controlled Substances and Regulatory Law Practice Group with any questions about this emerging area of law.

Ansell Grimm & Aaron Client Secures Cannabis Licenses

Ansell Grimm & Aaron is pleased to congratulate its latest client on securing a cannabis license from the New Jersey Cannabis Regulatory Commission. Mule Extracts LLC was awarded an Annual Class One Cultivator License.

Our Controlled Substances and Regulatory Practice attorneys understand the complex laws related to the production, sale, use, regulation, and legalization of controlled substances, including hemp, cannabis, and psychedelics. A multifaceted area of the law with conflicting regulations from different governing bodies, we help our clients navigate all aspects of this emerging field. Contact one of our attorneys if you have questions about this evolving area of law.

Ansell Grimm & Aaron Grows Litigation Department With Two New Attorneys

Ansell Grimm & Aaron, PC is pleased to announce that Gabriel Blum and Anthony Sango have joined the firm as associate attorneys. Blum and Sango join the firm’s Woodland Park office. 

“We’re thrilled to have Gabriel and Anthony on board,” said Managing Partner Michael V. Benedetto. “Adding two skilled litigators allows us to meet our clients’ steadily increasing legal needs. Their presence also supports our strategic growth plan, notably enhancing our capabilities.”

Blum’s practice encompasses a range of complex civil litigation matters. Licensed in New Jersey and New York, he is an experienced litigator joining from a national litigation firm. Blum earned his law degree at Benjamin N. Cardozo School of Law, where he was an articles editor for the Cardozo Journal of Law & Gender. He graduated from Yeshiva University with a Bachelor of Arts.

Sango handles a range of business and civil litigation matters. Before joining Ansell Grimm & Aaron, he was an attorney at an AmLaw 200 firm dedicated to civil defense litigation. Sango graduated from Seton Hall University School of Law and earned his undergraduate degree at SUNY Stony Brook. 

About Ansell Grimm & Aaron, PC

Ansell Grimm & Aaron, PC was founded in 1929 and has a long history of delivering for clients who come to us to resolve critical legal matters that are often urgent and stressful. A general practice law firm, Ansell Grimm & Aaron is powered by experienced attorneys who understand that the best outcome is one that serves the client’s needs.

Brian Ansell on The Jon Schultz Podcast: The Myth of Overnight Success

Brian Ansell: See the big picture on both sides and find the common ground

Growing up in a family of attorneys that debated over the dinner table, Brian Ansell became accustomed to speaking up to be heard. His interest in law stemmed from a desire to help others and the realization that he had witnessed this firsthand through his family, particularly his father and uncles, as well as other attorneys in his family’s social circle.

As a child, he had a shy personality, but as he grew older, he challenged himself to overcome his apprehension about being in public and commanding a room. With hard work and perseverance, he graduated law school and became president of the Monmouth County Bar Association, a position held by his father and grandfather as well, all while working and eventually taking over the firm his grandfather founded in 1929.

Preserving the legacy of a multi-generational family firm has its peaks and valleys; Join me as we hear Brian Ansell’s take on his path to succession and the difficulties and triumphs that come with managing a family company and maintaining a healthy work-life balance.

Rick Brodsky Represents Seller in $8.4M Monmouth County Parks System Acquisition

The Monmouth County Parks System just got a beautiful new view of the Navesink River, thanks to the help of Ansell Grimm & Aaron’s Rick Brodsky.

Stretched along the bank of the Navesink River is a largely undeveloped 17-acre waterfront estate, save for the existing residence and a pier extending into the river. The property has been privately owned for years, but the owners considered selling the prime land should the right buyer come along. While compensation for their property was important, the planned future use of the property when sold was equally crucial to the owners. They wanted to ensure the property’s legacy by maintaining its natural state while opening it for the public to enjoy. The owners turned to Rick Brodsky to help make their dreams come true.

Brodsky, who practices commercial and residential real estate law, began working with the owners several years ago to find a buyer to meet all their goals. As luck would have it, the county of Monmouth approached the sellers to begin discussing its possible purchase of the land. Rick started working closely with the owners, Monmouth County, and the Monmouth Conservation Foundation to ensure a smooth and beneficial transaction for all parties.

“This was a complex deal that has been years in the making,” Brodsky said. “But in the end, we reached an agreement that satisfied all parties involved.”

The 17-acre waterfront estate is on the Navesink River in Locust, New Jersey. The property is adjacent to Historic Hartland Place and will connect to Hartshorne Woods, an 800-acre peninsula park, giving park visitors access to the river. Under the terms of the sales agreement, the land use will be restricted to park use and be open to the public.

“I am proud to be able to play a role in the creation of this new park,” Brodsky said. “I am always hesitant to say a deal is a win-win, but in this case, I think it truly is. It’s great for the sellers, the county parks, and the public.”

Ansell Grimm & Aaron Congratulates Clients for Securing Cannabis Licenses

Ansell Grimm & Aaron, PC is pleased to congratulate its latest clients to secure annual cannabis licenses from the Cannabis Regulatory Commission. The Social Leaf, LLC was awarded an Annual Class Five Retailer License, and CSDE Manufacturing, LLC was awarded an Annual Class One Cultivator License. The Commission issues licenses for medicinal and recreational cannabis business operations in New Jersey. We proudly support these developing businesses.

Our Controlled Substances and Regulatory Practice attorneys understand the complex laws related to the production, sale, use, regulation, and legalization of controlled substances, including hemp, cannabis, and psychedelics. A multifaceted area of the law with conflicting regulations from different governing bodies, we help our clients navigate all aspects of this emerging field. We are committed to helping our clients understand their rights and opportunities in this evolving area of law.