55
35
35
18 See NRS 453D.140,
19 Cal. Civ. Code ยง 1550.5(b)(1).
20 See 242 Ariz. 293, 299, 395 P.3d 302, 308 (Ct. Appl. 2017).
21 See id. at 297, 395 P.3d at 306.
22 See id. at 298, 395 P.3d at 307.
23 See id. at 300, 395 P.3d at 309.
24 See, e.g., CWNevada, LLC v. 4Front Advisors, LLC, A-17-755479-C, District Court for Clark County, Nevada; see also MC Brands, LLC v. CWNevada, LLC, A-19,789678-B, District Court for Clark County, Nevada.
III. CONTRACTING TO MINIMIZE OR AVOID THE ILLEGAL CONTRACT DEFENSE
The best way to avoid protracted litigation from the illegal contract defense is to address it immediately in drafting cannabis-related contracts. Because cannabis remains nominally illegal at the federal level under the Controlled Substances Act, there is always some risk from the illegal contract defense. Nevertheless, there are several best practices that can help minimize or outright prevent an opposing party from raising the defense.