Pete O’Neil is suing the Washington state Liquor Control Board, which he said has refused to approve a license for C&C Cannabis to sell marijuana in Lynnwood.
- Valerie Bauman
- Staff Writer- Puget Sound Business Journal
A marijuana businessman is suing the Washington State Liquor Control Board, arguing the agency rejected his retail pot application over a minor technicality, putting him and his partners at risk of substantial financial loss.
The suit, filed in King County Superior Court, is seeking a number of measures for relief. The first is for the court to overturn the board’s decision to deny C&C Cannabis a license in Lynnwood. It was rejected for having only an electronic signature, instead of an electronic signature and a handwritten one, said Pete O’Neil, managing member of the company.
Officials at the board said they couldn’t comment on ongoing litigation.
The Liquor Control Board could be subject to dozens or even hundreds of lawsuits as it works its way through the first year of recreational marijuana’s availability in stores around the state. The first shops opened July 8, and more are gradually opening as the supply from growers is shored up.
Many lawsuits are expected to be filed by business people like O’Neil, who feel wronged by what they say is a system that set them up for failure.
C&C has attracted local investors buying in at $25,000 per “unit.” The company was named with a nod to Cheech and Chong.
We’ve covered O’Neil’s saga of trying to break into the pot business, in which he’s already invested $20,000 in rent, just for the Lynnwood location.
In this latest snag, C&C is the only applicant competing for the second open retail license in Lynnwood. Nonetheless, O’Neil said the board has not approved his application, which was submitted three weeks before the deadline.
In the lawsuit filed July 16, C&C attorneys write: “C&C is damaged every day (the Liquor Control Board) refuses to process its Lynnwood application. It cannot determine if it should invest more resources to advocate against or legally challenge Lynnwood’s moratorium on permits for cannabis businesses or it has clear standing to do so.”
Valerie Bauman covers health care and the marijuana industry for the Puget Sound Business Journal.
Fired up: Marijuana businessman sues Washington Liquor Control Board
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