Court denies motion by DHSS to dismiss Sarcoxie lawsuit

Ruling Clears Way for Trial in State’s Handling of Medical Marijuana Licenses

A southwest Missouri family whose passionate advocacy to legalize medical marijuana made them synonymous with the burgeoning industry was elated Tuesday when a judge agreed their lawsuit against Missouri Department of Health and Senior Services over its handling of the program should proceed to trial.

Cole County Circuit Judge Patricia Joyce rejected a motion by DHSS and Directors Randall Williams and Lyndall Fraker to dismiss the lawsuit that was filed in December on behalf of Sarcoxie Nursery. The lawsuit asks the court to declare the state’s limit on licenses unconstitutional under the “right to farm” amendment. It also challenges the state’s scoring system and use of “geographical bonuses,” which gave more points to businesses in high-unemployment ZIP codes.

Dr. Paul Callicoat, a retired cardiologist and a principal of Sarcoxie Nursery, said Tuesday’s ruling was a victory for patients, farmers, entrepreneurs and veterans across Missouri – all of whom would benefit if the lawsuit is successful.

“It’s unfortunate that we are being forced to seek a remedy through the courts. The common-sense solution is for the state to remove the caps and grant a license to any applicant who can meet the lawful standards,” Dr. Callicoat said. “This will create a robust marketplace that will benefit patients. Not to mention that the millions of dollars being spent by DHSS for attorneys and legal fees would be better spent on supporting our veterans.”

Missouri would generate an additional $14 million to $20 million annually for veterans by removing the arbitrary cap and granting a license to any applicant who meets the lawful standards, he said. This money would be in addition to the anticipated $4 million to $8 million the Department is expected to spend fighting applicants through the Administrative Hearing Commission.

“In these challenging economic times when our state’s budget is being drastically cut because of COVID-19, this additional revenue would afford our veterans much-needed health care and other services. This could all be done without the state having to provide any incentives, other than a level playing field for all qualified applicants to compete in the marketplace,” Dr. Callicoat said.

His wife Wendy and son Jonathon are also principles in Sarcoxie Nursery, located in Sarcoxie. Other plaintiffs in the lawsuit include GVMS, Inc., Missouri Medical Manufacturing, LLC, and Missouri Medical Products, LLC.

   

GVMS is led by a farmer and a team of dedicated businesses and community leaders from the Clinton area. Missouri Medical Manufacturing and Missouri Medical Products, based in Laurie, are majority female-owned and comprised of a physician, a dentist, a lawyer, a pharmacist, and other specialists.

Judge Joyce’s order simply stated: “Having reviewed and considered the pleadings and arguments before it, and having been fully advised, the Court DENIES Defendants’ Motion to Dismiss.”

The motion to dismiss the lawsuit was heard May 27 using the WebEx platform. Plaintiffs’ Attorney Joe Bednar said the Attorney General’s Office, which represented DHSS and the Directors, had wrongly mischaracterized the December lawsuit as asking the court to award his clients licenses.

“My clients share with others the desire for a robust medical marijuana program that ensures patient access and a competitive marketplace,” Bednar said. “They also share with others a desire for all applicants who meet the lawful standards to be issued Medical Marijuana Facility Licenses, and they look forward to competing in the marketplace to serve patients.”

Specifically, Bednar wrote in his response to the motion: “The actions of the defendants, through the promulgation of unlawful and unconstitutional rules and policies, are contrary to ensuring the constitutional mandate of Article XIV for patient access and a competitive marketplace.”

Bednar noted that his clients are among the estimated 800 individuals who have appealed the denial of their license applications with the Administrative Hearing Commission. They would still need to proceed through the Commission, even if their lawsuit is successful, he said.