Judge Sides With Salem In Lawsuit Filed By Cannabis Company

SALEM, MA — A Salem Superior Court judge dismissed a lawsuit filed last year by a company that had been turned down by the city of Salem for one of its licenses to sell recreational cannabis. It was the fifth time complaints by Mederi have been dismissed.

"The court has, once again, upheld the City’s position that it approached the process of approving retail marijuana establishments in a transparent, professional, and fair manner," Dominick Pangallo, chief of staff to Salem Mayor Kim Driscoll, said in a statement. "This is now the fifth court decision dismissing complaints by Mederi and finding, based on a tremendous volume of clear evidence, that the City of Salem acted objectively, consistently, and reasonably."

Mederi filed the lawsuit in December 2018 claiming the state Cannabis Control Commission — not municipalities — have the authority on which businesses get licenses. While Mederi received zoning approval, the city notified the company in early December 2018 it would not be invited to negotiate a host community grant with the city.

In October, Mederi threatened to file a second lawsuit against the city, claiming a video Ward 4 City Councilor Tim Flynn posted to his Facebook page proved "purely discriminatory" actions by Salem.

"Faced with more applicants than available licenses, the City heeded the guidance of the Cannabis Control Commission to develop a process in order to evaluate the applicants on the merits and determine the best possible operators in the least impactful locations to residents and neighborhoods," Pangallo said. "The City is satisfied with the outcome of that process and with the court’s decision today."