Saturday, June 10, 2017

Court: Neighbors can sue pot grower for stinky smells

A pot farm's neighbor can sue them for smells and other nuisances that could harm their property values, a federal appeals court ruled Wednesday.

The 10th U.S. Circuit Court of Appeals ruling revives a lawsuit between a Colorado horse farm and a neighboring marijuana-growing warehouse.

The horse farm's owners, the Reillys, sued in 2015, claiming that the pot-growing warehouse would diminish their land's value by emitting "noxious odors" and attracting unsavory visitors. A federal district court dismissed the Reillys' claim, and the pot warehouse opened in 2016.

The horse farm owners appealed, and a three-judge appeals panel agreed Wednesday that their claims should be heard. But the judges said the Reillys can't sue Colorado to force the state to enforce federal drug law and not allow the pot warehouse in the first place.

The southern Colorado horse-vs-pot case is interesting because the horse farm owners are trying to use a 1970 federal law crafted to fight organized crime. The Reillys say that federal racketeering laws entitle them to collect damages from the pot farm, even though the pot farm is legal under state law.

"The landowners have plausibly alleged at least one (racketeering) claim," the judges wrote.

Pot opponents say the racketeering strategy gives them a possible tool to break an industry they oppose. It could give private citizens who oppose pot legalization a way to sue the industry out of business, even as federal officials have so far declined to shut down most pot businesses operating in violation of federal drug law.

"This is a tremendous victory for opponents of the marijuana industry," said Brian Barnes, a Washington-based lawyer who represents the Reillys on behalf of the anti-crime nonprofit group Safe Streets Alliance.

Owners of the pot warehouse, owned by a company called Alternative Holistic Healing, did not immediately return a call for comment Wednesday. An attorney representing them in the case could not be reached, either.

The case now goes to back to a federal district court that had earlier dismissed it.

The appeals panel handed pot opponents a defeat on another case Wednesday, however. The judges ruled that a lower court was right to dismiss a claim from a group of sheriffs in Colorado, Nebraska and Oklahoma, who had asked the federal court to block Colorado's pot law.


Court: Ohio E-School Can't Delay Repayment of $60M to State

ECOT's reported enrollment of 15,000 Ohio students makes it one of the largest online charter schools in the U.S.

Democrats jumped on the court's decision to pile criticism on the school, which has struggled for years against attacks on its enrollment practices and student performance ratings.

"This sham, unaccountable school is a clear waste of taxpayer money and needs to be shut down," said Democratic gubernatorial candidate Betty Sutton. "The main thing that they seem to do well is shower Republican candidates and committees with political donations instead of educating children. Unfortunately, it is a symptom of a much larger disease facing Ohio's education system."

ECOT spokesman Neil Clark said the school didn't get a fair shake in court. He took particular aim at one of the three deciding judges, Gary Tyack, as being biased against the school, online learning and school choice.

"Today, Judge Tyack confirmed that he would put his agenda before the law," Clark said in a statement. "He is desperate to destroy ECOT and is unwilling to even wait for the judicial system to play out before advancing his vendetta."

Chief Justice Maureen O'Connor rebuked Tyack after oral arguments were held in the case before the state's high court. She wrote that his comments against the school, its founder and online education were derogatory, extrajudicial, unnecessary and unacceptable.

The school's efforts to revisit the issue of Tyack's impartiality came as it braced for Monday's important school board vote, which comes amid the long-running legal dispute over what attendance-tracking practices should be used to determine state funding.

A state hearing officer ruled against the school in its appeal of the state Education Department's determination that the school owes $64 million for enrollment that can't be justified due to lack of documentation.