Legal battle over Charlie Fox dispensary in Southampton
September 20, 2025
A Southampton cannabis dispensary is defiantly staying open despite town officials serving the business with a cease-and-desist order for what they said is a failure to obtain town permission to operate.
Town Attorney James Burke told Newsday that the Charlie Fox dispensary, which opened Tuesday, had not gone through the permission process for opening a cannabis dispensary.
He said it also had not obtained any of the permits required for any new business to open that is a change in use, such as a certificate of occupancy and fire marshal inspection. The building was previously home to Hampton Car Club, a car service and repair business.
“We don’t want people in an unsafe building,” Burke said, noting that in addition to the cease-and-desist, the business was issued numerous citations. “We were giving them the opportunity to comply.”
Charlie Fox co-founder James Mallios told Newsday in an email that “no town permits are required” for the business to operate. The dispensary is owned by Birchwyn & Tess LLC. That company does not own the former Charlie Fox dispensary in Manhattan that was fined by the state Office of Cannabis Management this summer for violating cross-tier manufacturing and retail rules, according to the OCM.
“This isn’t about a ‘rogue’ dispensary — it’s about a licensed business being blocked in defiance of state law,” Mallios told Newsday. “We’re fully licensed by New York State and need no permission from Southampton to open.”
Mallios said his business filed for a town permit “under protest to show good faith.” He said they submitted plans and traffic studies but the town “slow-rolled” them. He said the dispensary has a certificate of occupancy and provided a copy to Newsday dated 1984 and for “Sweeney’s Auto & Marine Upholstery.”
Burke said interior renovations and a change of business require a new certificate. He said the owners applied for a pre-admission approval but did not get planning board approval as required by the town for a cannabis dispensary.
New York legalized recreational marijuana sales in 2021 but allowed local municipalities to decide whether to allow retail cannabis dispensaries in their communities.
Babylon, Brookhaven, Riverhead and Southampton are the only Long Island towns to allow recreational marijuana sales. There are currently more than a half-dozen dispensaries in operation in the towns, with several more receiving approval and poised to open.
Taylor Randi Lee, press secretary for the OCM, sent a statement to Newsday saying that Charlie Fox has met all state requirements for a license.
“However, all licensees are also required to comply with applicable local municipal policies and regulations to open their business and remain in good standing,” she wrote. “If a licensee feels that local ordinances are unreasonably impracticable, it can request a ruling from the Cannabis Control Board.”
The dispensary continued to operate as of Friday, and Mallios said they have no intention of closing without a court order.
Burke said the town is in the process of seeking a court injunction to shut the dispensary down.
“It’s unfortunate because it really didn’t have to be this way,” Burke said. “We’d still work with them the best we can if they’re compliant in every other way.”
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