skip to Main Content
U.S. District Court Dismisses TCPA Lawsuit Against Eaze, Upholding the Ability of Legal Cannabis Industry to Enter Binding Contracts

PRESS RELEASE

Ruling sets important precedent for both California’s legal cannabis market and legal cannabis industry in America.

SAN FRANCISCO–(BUSINESS WIRE)– Eaze Technologies, Inc. today announced that it obtained a complete dismissal of Williams v. Eaze, Inc., a putative nationwide class action lawsuit brought under the Telephone Consumer Protection Act (“TCPA”), by successfully enforcing the arbitration agreement in its Terms of Service.

In her lawsuit, Plaintiff Farrah Williams, attempted to circumvent the arbitration agreement in Eaze’s Terms of Service by arguing that cannabis contracts cannot be “formed” because cannabis is illegal under federal law. The court rejected this claim, thus preserving the ability of cannabis businesses, operating where cannabis is legal under state law, to enter into and enforce basic contracts with customers, individuals, and other businesses.

“This ruling is enormously important for the entire industry, as contracts across California and nationally could have been invalidated had the court found for the Plaintiff,” said Andrea Lobato, Chief Risk Officer at Eaze. “We are pleased to have successfully defended the basic right of legal cannabis companies to enter into contracts.”

After substantial briefing and argument led by Boies Schiller Flexner partners, Albert Giang and Michael Roth, the district court concluded that a proper contract had been formed, delegated other disputes to the arbitrator, and dismissed Plaintiff’s nationwide class action. Specifically, while noting that the case raises interesting issues about “ganjapreneurship,” the Court concluded that Eaze’s business “is legal under California state law” and arbitration was required under the Federal Arbitration Act (“FAA”).

“The court correctly found that cannabis companies are not barred from forming and enforcing basic contracts, and that Eaze’s business is legal under California state law,” said Giang. This ruling sets an important precedent for California’s legal cannabis market, and more broadly for the legal cannabis industry in America.

ABOUT EAZE

Eaze, a cannabis marketplace, connects adult consumers with licensed dispensaries and products. We are on a mission to enhance safe access to legal cannabis, educate people about cannabis as a tool for wellness, and drive smart cannabis policies. Learn more at www.eaze.com.

This Post Has 0 Comments

Leave a Reply

Your email address will not be published.

Recent Stories

Cannabis banking supporters scramble to reach lame-duck deal

The Senate is trying to get a package of cannabis-related legislation over the finish line in this Congress. Urgency is building in the Senate to get cannabis legislation passed before…

Marijuana businesses to offer free cannabis to Michigan military veterans

Since Anton Harb Jr. returned from Middle East battlegrounds where he fought in Operation Iraqi Freedom in 2005, he’s fought a different sort of battle: post-traumatic stress disorder (PTSD). It’s…

Operator’s Guide to Maryland and Missouri Adult-Use Cannabis Legalization

By Peter S. Murphy, Attorney at Saul Ewing On November 8, 2022, Maryland and Missouri residents voted to legalize adult-use cannabis. Similar ballot measures failed in North Dakota, South Dakota and…

Marijuana Majority

Americans support marijuana legalization, but many of their political leaders do not. A decade ago, no American lived in a state where marijuana was legal to smoke, vape or eat…

More Categories

Back To Top
×Close search
Search