Landlords in Los Angeles who are leasing their properties to Medical Marijuana Business need to be mindful of the very real chance that the City Attorney will also name the Landlord as a defendant in Prop D civil complaints, as well as criminal prosecutions. Medical Marijuana Businesses are illegal pursuant to LAMC 45.19.6.2. However, certain immunities are available to Prop D compliant collectives/dispensaries. Of those Marijuana Businesses that are not Prop D complaint, the City Attorney is currently pursuing both criminal and civil prosecution. What this means to a Landlord renting to a Marijuana business not compliant with Prop D, is that the landlord could be also named as a defendant pursuant to LAMC 45.19.6.2 and subject to civil penalties (up to $2,500 per day) and also faced with injunctions and clouds on title from a lis pendens filed by the City.
If you are a Landlord in Los Angeles facing a civil matter stemming from your lease to a Marijuana Business, contact one of our Commercial Lease Attorneys for a free consultation and case evaluation.