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New York City Sues Unlicensed Cannabis Dispensaries and Landlords: Case Update

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As we discussed here, in February 2023, New York City began filing lawsuits against the landlords and tenants of unlicensed cannabis dispensaries. One litigation that stands out is entitled The City of New York v. The Land and Building Known as 14 First Avenue, et al., Index No: 450378/2023 (the “Land Building Action”).  In the Land Building Action, the City alleges that undercover, underage police officers bought marijuana at each of the shops on three occasions in December and those premises did not have a CAURD license to sell marijuana.

In each filing, the City demands financial penalties from both the landlords and store owners. In the Land Building Action, the City is additionally seeking to permanently stop the subject premises located at 14 Fist Avenue, Ground Floor (the “Premises”) from being utilized to sell cannabis. The City is relying on the same public nuisance laws that usually are used when landlord refuse or fail to evict tenants that operate brothels and drug dens.

The Land Building Action

Since the Land Building Action was filed, the City filed an emergency order to show cause seeking a preliminary injunction and temporary restraining orders and a temporary closing order against the defendants

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