Cannabis has been one of the most talked-about and legally controversial businesses in the last several years. The cannabis market has grown a lot as more states and countries move toward making it legal. However, the cannabis market’s quick growth has also led to more problems, from business issues to problems with the law. It’s important to know how to handle a cannabis dispute if you work in the cannabis sector, whether you cultivate, sell, or do something else. One of the best methods to deal with and settle these disagreements is to hire a lawyer who specializes in litigation. If you’re wondering what litigation is or why a civil litigation lawyer is so important in the cannabis industry, keep reading to find out why you need one.
Read also: Why Choosing the Right Cannabis Law Firm Matters for Your Business?
Understanding Cannabis Disputes
There are several things that might cause cannabis-related issues, such as commercial relationships, property agreements, intellectual property, following the rules, and even breaking contracts. For instance, a cannabis growing business can disagree with a partner about how to split profits or how good the products are. Another problem that a store may have is that the things they sell may not be legal, especially in states where the rules are different. These legal problems need someone who knows a lot about both the cannabis sector and how lawsuits work.
These legal issues can be very complicated, whether you’re dealing with money problems, breaking the law, or disagreements between stakeholders. Different industries face different legal problems because of the patchwork of state and federal regulations about cannabis. This is when a lawyer who knows a lot about cannabis law and litigation comes in handy.
What is Litigation and Why Does It Matter?
It’s crucial to know what is litigation before you learn about what a litigation lawyer does. Litigation is the process of settling disagreements through the courts, usually by filing a lawsuit or going to trial. Litigation can include a wide range of legal problems, such as personal harm, intellectual property disputes, and, in this case, cannabis-related challenges.
Negotiation, settlement, and, if required, trial are all parts of the process. Litigation isn’t always about going to court; it’s about using the law to settle disagreements. A civil litigation lawyer works on cases that aren’t illegal, which is typically the case in the cannabis market. These lawyers deal with mostly financial or contract disputes, not criminal ones. That’s why their knowledge is so important when it comes to cannabis business difficulties.
Why a Litigation Lawyer is Essential in Cannabis Disputes
Navigating Complex Cannabis Regulations
The cannabis business has to deal with a lot of challenges, but one of the biggest is the changing and frequently inconsistent laws. Cannabis is authorized for medical or recreational use in several states, but it is still prohibited at the federal level. Because cannabis laws are so complicated, you need a lawyer who knows both state and federal law.
A litigation lawyer who knows about cannabis legislation can assist you understand all of these rules and make sure you follow them. They can help you comprehend zoning laws, licensing requirements, or rules that are only for cannabis product packaging, advertising, and delivery. Also, they can help lower the legal dangers that come up when rules are unclear or don’t agree with each other.
Protecting Your Business Interests
Disagreements between business partners are bound to happen in an industry like cannabis that is growing quickly. It’s quite important to have a civil litigation lawyer on your side if you’re having problems with contracts, earnings, intellectual property, or how your business runs. A litigation lawyer can help you safeguard your business by making sure your contracts are solid and that your rights are protected in court if you need to.
For instance, let’s say you grow cannabis and work with a distributor. But problems come up when the distributor doesn’t deliver on time, which puts a burden on your business’s finances. In this scenario, a litigation lawyer can assist you look at your choices, which range from settling the case to suing to get damages or make sure you follow through on your contract.
Resolving Contract Disputes
Contracts are the most important part of any business deal, and the cannabis market is no different. Disagreements over the terms of a licensing agreement, supply contract, or partnership agreement can lead to big legal problems. A litigation lawyer can help you with the legal concerns that come up in these kinds of situations.
A litigation lawyer can look over the terms of a cannabis-related contract issue, find any possible breaches, and help you take legal action if you need to. They can speak up for you in talks and help make sure that the issue is settled equitably. If things go worse and you have to go to court, they will be able to help you through the whole process, giving you competent advice and taking care of all the legal work.
Dealing with Regulatory Violations
Because the rules about cannabis are complicated and sometimes hard to understand, it’s easy for businesses to break the law. Regulatory infractions can cause a lot of damage to your reputation and finances, whether they are not following local zoning regulations, breaking advertising rules, or not following state-specific cannabis testing rules.
A civil litigation lawyer can assist you deal with these problems and lessen the possible consequences. They may help you file appeals, advocate your interests in front of regulatory boards, and make sure that any legal proceedings done are in your best interest. They may also help you deal with any enforcement proceedings, including having your license suspended or taken away, which might be very bad for your business.
Intellectual Property Protection
As the cannabis industry grows up, protecting intellectual property (IP) has become a big issue. Intellectual property is a crucial asset for many cannabis firms. It may protect things like cannabis product compositions, branding, and even new ways of growing cannabis.
A litigation lawyer can help you keep your intellectual property safe by making sure that your patents, trademarks, and copyrights are filed and enforced correctly. If someone violates your IP rights, a litigation lawyer can help you get damages and stop them from doing it again.
Mitigating Risks of Federal Law
Cannabis firms face a unique set of legal dangers since state and federal cannabis regulations are different. Cannabis is still a Schedule I controlled substance at the federal level, even though it may be legal in some states. This makes it hard for banks, taxes, and trade across states to work.
A litigation lawyer can assist your firm follow the rules set by both the state and the federal government. They can help you deal with problems that come up with federal agencies like the IRS, the Drug Enforcement Administration (DEA), or the Department of Justice. If the federal government is looking into or prosecuting you, having a litigation lawyer by your side makes sure you have the legal knowledge you need to protect your firm.
Read also: Is Your Cannabis Business Truly Compliant? Most Aren’t — Here’s Why That Matters
Conclusion
Cannabis disputes can be difficult to deal with, especially when you think about how complicated the laws are in this area. If you have difficulties with the law, your business, or your intellectual property, a litigation lawyer is a must-have to help you solve them. They know a lot about both litigation and the details of cannabis law, so they can help you defend your company interests.
If you hire a civil litigation lawyer, you can be sure that your cannabis-related problems will be addressed well, whether through negotiation or court. You can focus on what matters most: growing your cannabis business and keeping up with the changing legal landscape in the industry when you have an experienced lawyer on your side.