Kittery, Maine — A recent decision by Maine’s highest court has revived a legal battle over the licensing procedure for recreational cannabis stores in Kittery, setting the stage for further scrutiny of local governmental policies affecting the burgeoning industry. The state’s Supreme Judicial Court overruled a lower court’s decision this Thursday, allowing a lawsuit filed by High Maine LLC to challenge the town’s licensing process.
In October 2023, High Maine LLC initiated a lawsuit against the town of Kittery, arguing that the town’s lottery system used to allocate licenses for cannabis stores is defective. The Superior Court originally dismissed the lawsuit, citing lack of standing by the company. However, the Supreme Judicial Court’s recent verdict asserts that High Maine has a legitimate claim, as the company contends it was unfairly denied the chance to compete for a license.
The controversy centers on the town’s unique lottery-style system for granting cannabis store licenses, which High Maine alleges is unfairly implemented. The lawsuit highlights issues with how licenses are awarded and specifically points to the instance where GTF Kittery 8, a competitor, was granted a license for two merged store proposals in a location allegedly too close to a school or daycare, violating local zoning laws.
According to court documents, the Supreme Judicial Court deemed that the licensing process possibly deprived High Maine of a fair opportunity to participate in the market—thereby qualifying them to pursue legal action. The case is now redirected to the Superior Court for further examination.
This legal confrontation arises amidst the broader context of Maine’s efforts to regulate its recreational cannabis market, which voters legalized in 2016. Since then, the state has been laying out frameworks for licensing to ensure compliance and public safety, but this lawsuit underscores continuing challenges in implementing fair and transparent processes.
Local business owners and potential entrants into the cannabis market are closely monitoring the outcome, as it could set significant precedents for how municipal governments manage the competitive and lucrative cannabis industry. The case highlights a growing need for clarity and consistency in cannabis regulations to ensure equal opportunities for all businesses.
As the case progresses back to the Superior Court, legal experts and industry analysts will be observing how this challenge could influence regulatory practices across Maine and potentially other regions embarking on similar cannabis legalization journeys.
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