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Florigrown Supreme Court Decision: What Happened?

Florigrown Supreme Court Decision: What Happened?

To the surprise of almost everyone, the Florida Supreme Court recently ruled against Florigrown, the medical marijuana company challenging the state’s requirements for license holders to be completely vertically integrated. In other words, medical marijuana companies must be responsible for growing, cultivating, and distributing the approved substance. Florigrown’s argument was, essentially, that the requirement was unfair to Florida businesses and created “special laws” for the fortunate few that were able to get a license.

A lower court heard these arguments and granted an injunction that temporarily stopped the issuance of new medical marijuana licenses. This decision, compounded with the delays caused by the pandemic, effectively put the state’s medical marijuana industry in limbo. The granting of the injunction signaled that Florigrown seemed to be in a good position going to the state’s highest court. Ultimately, though, the state Supreme Court disagreed.

The Florida Supreme Court disagreed with the injunction put in place by the lower court and concluded that Florigrown was unlikely to succeed on the “merits” of its side’s arguments. Even though the Court only ruled on the temporary injunction, the text of the decision effectively means that the state’s conditions for medical marijuana licensing will continue. As a result, licenses will probably only be available for firms with several million dollars of capital.

Are There Any Bright Spots?

For entrepreneurs determined to break into the medical marijuana market in Florida, the mere fact that a decision has been made should be viewed as a welcome development. During this period of uncertainty, no new licenses were granted per the temporary injunction. However, patients were still being added to the state tally. Per existing law, four new licenses should be made available for every 100,000 patients added. Now that the Florida Supreme Court has ruled in the Florigrown case, the state health department should resume issuing new licenses soon.

Almost immediately after the decision, the value of medical marijuana licenses in Florida shot back up. While the barrier to entry for the state’s industry remains high, it won’t likely be too difficult to raise the capital necessary to scale operations after obtaining a license. With all our firm has seen in the fight to access medical marijuana licenses in Florida, we can say with confidence that persistence pays off. Next month, we’ll take a closer look at how medical marijuana firms in Florida can better position themselves for state-issued licenses and, ultimately, take advantage of this extremely lucrative industry.

Petkovich Law Firm is Ready to Help

In the meantime, we stand prepared to offer customized legal consulting services for entrepreneurs determined to make their imprint in Florida’s medical marijuana industry. Our team has been on the front lines of this fight since day one, and we know that success is possible. Petkovich Law Firm also helps clients fight a wide variety of criminal accusations and resolve stressful family law matters. Contact our team today to set up your initial consultation.


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