Last week, my colleague Jesse Mondry and I spent an hour discussing the challenging state of the cannabis industry and how it’s been impacting those who are considering litigation or other dispute resolution options. If you weren’t able to attend the webinar, below are some of the key discussion points and takeaways.
We’re seeing even more breach of contract actions
This isn’t surprising. As the industry grapples with the downturn, there is just an overall inability to comply with preexisting agreements or payment terms. In particular though, breach of contract claims have been even more rampant in the purchase and sale context because people are just not paying up – so much so that California even proposed a program to deal with how extensive the problem is becoming.
We’re also seeing an uptick in LLC and partnership disputes
This isn’t new either, but as companies fail to perform as advertised several years ago, LLC member and partnership disputes have steadily increased as well. As Jesse covered, it’s important to get things documented well – he specifically mentioned he’d love to see more provisions relating to the accounting aspect of the business in operating agreements – to clarify the