Members of the Alabama Court of Civil Appeals ruled on Friday the Alabama Medical Cannabis Commission (AMCC) “properly exercised” their power to rescind an earlier round of cannabis business licenses awarded in August 2023.

The lawsuit was brought by Southeast Cannabis Company, Yellowhammer Medical Dispensaries, and TheraTrue Alabama against the AMCC. All three companies were awarded licenses in August 2023, but the licenses were later rescinded by the commission due to separate litigation brought by unsuccessful companies against AMCC. None of the three companies were awarded licenses in a later round of awards in December 2023.

“Alabama law recognizes that an administrative agency has a limited inherent power to rescind a nonfinal administrative order to avoid a procedural legal error. The AMCC properly exercised that limited power when it rescinded the August 10, 2023, license awards,” members of the Alabama Court of Civil Appeals said in a ruling on Friday. “In conclusion, we dismiss the appeals insofar as they relate to any claims arising out of the August 10, 2023, decision to rescind the June 12, 2023, license awards. We conclude that the circuit court had jurisdiction over the claims arising out of the AMCC’s October 26, 2023, decision to rescind the medical-cannabis license awards made on August 10, 2023, and we affirm the summary judgment as to those claims.”

Patrick Dungan, an attorney representing Southeast Cannabis Company, told 1819 News on Friday, “The Alabama Court of Civil Appeals ruled this morning that state agencies are gods… that they can do whatever they want to do, whenever they want to do it, and put things on ice for as long as they want to.”

“As of today, if you don’t like the decision of a state agency, all you have to do is accuse the agency of doing something wrong and the agency can use that allegation, without admitting any wrongdoing, as an excuse to give itself a mulligan, even if other parties are harmed,” Dungan said. “In 43 pages, the Alabama Court of Civil Appeals likely just created the biggest expansion of power by state administrative agencies in this state’s 205 year history.”

An AMCC spokesperson declined to comment on the ruling.

Alabama Court of Civil Appeals by Caleb Taylor on Scribd

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