CANNAINVESTOR Magazine U.S. Privately Held April / May 2019 | Page 92

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16 Ginsburg v. ICC Holdings, LLC, 2017 WL 5467688 at *8 (N.D. Tex. Nov. 13, 2017).

Several other federal courts have joined the Tarr court. The United States District Court for the Northern District of Texas reached a similar conclusion regarding the uniqueness of cannabis operations under state law, indicating such situations require “nuanced approaches to the illegal contract defense, taking into account such considerations as avoidance of windfalls or forfeitures, deterrence of illegal conduct, and relative moral culpability.”16 In Mann v. Gullickson, the United States District Court for the Northern District of California quoted Green Earth heavily in explaining that “federal policy regarding enforcement of the [Controlled Substances Act] has been less than clear since 2009.”17 These courts

took a flexible approach to the illegal contract defense, noting that it would be odd to

allow a party that freely contracted

to provide a cannabis-related

product, service, or investment to

later avoid its obligations by

arguing the contract it signed

was illegal under federal law.

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