Our Firm currently represents a landlord who rented to a medical marijuana business for about a year. The landlord was named as a defendant in a lawsuit (one of several) currently pending in the Los Angeles County Superior Court. The City alleged violations of California’s Unfair Competition laws and also Prop D violations. Part of the City’s prosecution against the Landlord included the filing of a lis pendens.
Shortly after the City filed, our landlord evicted the medical marijuana tenant and has since rented to a non-marijuana business. Despite these facts, the City refused to remove the lis pendens. After filing a motion to expunge the lis pendens and oral arguments, the Court granted landlord’s petition and ordered that the lis pendens be expunged.
Case law supports the expungement wherein the offending or violating conduct has ceased. Despite the ruling, it is anticipated that the City will appeal the decision given the unfavorable precedence set by the trial court.
Landlords of marijuana businesses, be mindful about the potential for civil and criminal prosecutions by the City. Although this issue is both of political and social concern, the City Attorneys, at least in our case, are not sympathetic to a landlord, even when the landlord has fully complied and remains compliant. The City is currently aggressively seeking civil penalties despite the premises being marijuana free for several months and under a lease to a non-marijuana business for years to come.
If you are a commercial landlord and in need of a Commercial Lease Attorney, contact us for a free consultation and case evaluation.