First Medical Marijuana Lawsuit Filed In Illinois

Jacob Redmond

Well-Known Member
The conflict between the states and the federal government when it comes to legalized medical marijuana may play out in an Illinois court.

What is believed to be the first lawsuit regarding medical marijuana licenses in Illinois was filed Friday in downstate Coles County by a business that lost out in its bid to get a license to grow medical marijuana.

The business, Shiloh Agronomics LLC contends that the company it lost out to, Shelby County Community Services Inc., was improperly given the license because it is a nonprofit organization that receives tax benefits from the Internal Revenue Service, a federal agency.

"The concern is that because Shelby County Community Services is a federally recognized 501(c)(3) tax-exempt entity, it is not eligible to apply for a permit to engage in an activity that violates federal law," said Jude Sullivan, whose father, James Sullivan, holds a large stake in Shiloh Agronomics.

A representative for Shelby County Community Services did not respond to requests for comment. A state spokesman declined to comment on the allegations made in the lawsuit.

The Shelbyville nonprofit provides services and employment to people with developmental disabilities. The group's executive director has said the marijuana farm could provide more jobs, according to local media. The group also provides substance-abuse counseling.

But once the IRS gets wind of Shelby County Community Service's foray into the medical marijuana industry, it could determine the Illinois group is not eligible for the tax exemption, said attorney Adam Fayne, who does not represent the nonprofit or the company suing it but has worked with other marijuana license applicants.

Involvement in the medical marijuana industry, even if it's legal in Illinois, means a violation of federal law and the IRS' requirement that nonprofit groups be "equated with the public good."

"Violations of law are the antithesis of the public good," according to an IRS document.

"This sort of exemplifies the conflict, the dichotomy, between state and federal law," Fayne said. "While this organization may have the best of intentions, the federal government isn't going to support its endeavor."

Other lawsuits over the distribution of licenses to grow and sell medical marijuana are expected.

Former Gov. Pat Quinn left office without announcing who could grow and sell Illinois pot despite his administration producing a list of businesses recommended to land the coveted licenses to grow and sell medical marijuana.

Gov. Bruce Rauner reviewed those recommendations and issued the licenses earlier this month.

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This is a huge disappointment to me!
I have an incurable brain cancer.
The meds that the doctors disperse to me only trigger something else to go wrong. My dad calls it the wake-a-mole effect.
At night I use recreational marijuana to help with headaches, sleeping, blood circulation, nerve endings, balance. And many more issues I can't think of off hand.
To whom it may consider,
Or pass this on to whom this may consider,

Coming from a 37 yr old female that has been dealing with this breast cancer in the brain for 4yrs,
Please reconsider this choice,
Kristen
 
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