$500,000 Medical Marijuana Loan Up In Smoke

It is unclear whether Haile or Hammer will appeal. But Morgan Fox, a spokesperson for the Marijuana Policy Project, a national non-profit marijuana reform organization, thinks the entire issue needs to be resolved. "In 2009, the Department of Justice announced that they were not going to use resources going after people who were in compliance with state medical marijuana laws, effectively saying they were choosing not to enforce federal law under certain conditions," he said. "Since that time, those conditions have evolved. The definition of who the DOJ is choosing to ignore and what they consider to be in compliance with state law is certainly getting narrower, but it is also becoming more and more vague."

Richard Keyt, a business attorney in Phoenix who runs a medical marijuana law web site, agreed. "Clearly, lenders need to take notice of this case because they might not be able to enforce their loan, which is what's happening in this particular case," he said. "But it has a broader meaning--it may mean that no contract involving medical marijuana dispensaries, or anything relating to medical marijuana, would be enforced. They're going to be the bad boy for the dispensary industry. Who wants to do business with somebody if you can't enforce your contract?"

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