Michigan Patient-To-Patient Marijuana Sales Struck Down

The Michigan Court of Appeals has ruled that marijuana dispensaries conducting patient-to-patient sales of the drug are illegal and can be shut down under the state's public nuisance law.

The case arose from a legal challenge to a for-profit system of marijuana sales among patients at a Mount Pleasant, Mich., marijuana dispensary, Compassionate Apothecary. The ruling now stands as precedent for all other lower court cases in Michigan and carries immediate effect, according to Michigan Attorney General Bill Schuette.

"This ruling is a huge victory for public safety and Michigan communities struggling with an invasion of pot shops near their schools, homes and churches," said Schuette. "The Court echoed the concerns of law enforcement, clarifying that this law is narrowly focused to help the seriously ill, not the creation of a marijuana free-for-all."

Impact to be quickly felt statewide

Schuette said he will send a letter to Michigan's 83 county prosecutors explaining that the ruling clearly empowers them to close dispensaries and provide instructions on how to file similar nuisance actions to close dispensaries in their own counties.

A three judge panel of the Michigan Court of Appeals ruled Compassionate Apothecary is in violation of the state Public Health Code and the Michigan Medical Marijuana Act (MMMA) in State of Michigan v. Brandon McQueen and Matthew Taylor, d/b/a Compassionate Apothecary, LLC. The Court concluded that:

• The MMMA does not legalize marijuana;
• The MMMA authorizes marijuana use only in "very limited circumstances;
• The "medical use" of marijuana does not include the sale of marihuana;
• The MMMA does not authorize marijuana dispensaries; and
• The courts can infer that a dispensary's purpose is not to alleviate a debilitating medical condition. 

In March, Schuette joined Isabella County Prosecutor Larry Burdick in his appeal of the case, The Isabella County prosecutor's office sought to have Compassionate Apothecary, a medical marijuana club owned by two Mt. Pleasant residents, declared a public nuisance and closed on the grounds its activities violated the MMMA.  

The club allows patient-to-patient sales of marijuana, with the club profiting by taking a 20 percent commission.