Uma Flowers, a small cannabis corporation from Massachusetts or a Multi-State Operator (MSO) lost its dispensary approval to operate in Morristown and has sued them.
Morristown had a very shady cannabis approval process to award Uma Flowers approval for its adult-use cannabis dispensary to operate in town in 2022.
Uma Flowers was the only cannabis company to pass the process set up in 2022. They were chosen over five local serial entrepreneurs.
Many Problems for Small MSO Uma Flowers
In June the Morristown Council resolution revoked their license since they had problems opening. They noted that Uma Flowers said it needed even more time to open. Notably, they only reached out a week before their approval was going to expire.
The Council got tired of them taking them too long to open. Last October 2023, they extended their approval but were unhappy about it. They complained Uma Flowers was not communicative and probably can’t open by next January 2025.
The Council seemed to realize their process was problematic. So, they want to eliminate the strict criteria established. Instead, they want to empower their Cannabis Advisory Board (CAB). It’s made up of appointees made by long-time Mayor Tim Dougherty (D), who is no stranger to shadiness.
“Having criteria as part of the ordinance assures a non-arbitrary, fair review process, where the criteria is developed ahead of time with no knowledge of who potential applicants might be in the future,” Councilman Robert Iannaccone, who sits on the CAB, said.
Notably, he does not call himself a Republican or a Democrat.
Explaining Delays
Uma Flowers is owned by Indian American women, Tejal and Priyanka Patel, who are sisters-in-law.
Priyanka told the Council they raised $2 million to open their location in Morristown. She defended her company to the Council as up to the challenge. Priyanka said they have two locations open already in Massachusetts and are going to open a third.
The lawsuit notes their “sister company, Stories Cannabis, operates a successful cannabis dispensary in Fall River, Massachusetts.”
The CAB report was critical of their “sister company.”
The Council was skeptical of its operations and its success. Priyanka defended abandoning launching a growing operation because there were too many growers in the market.
She also showed documentation that they did indeed have the two million dollars they needed to open. In addition, Priyanka said they had to demolish an auto shop with asbestos, remove any contaminated soil, and start building from scratch. They wouldn’t even own the building they would build.
To make matters worse, the nearby river and phone lines also led to complications that took time to address.
The Uma Flowers construction project manager said they already poured concrete for a foundation.
Priyanka alleged they kept in town with town officials while not informing the CAB or Council.
Fighting the Morristown Cannabis Dispensary Process
It was the CAB that recommended the Council revoke their permission based on a report. However, the attorney for Uma Flowers said they were not allowed to see the report.
Priyanka said they are suing a town in Massachusetts over their decision as well which the Council also did not like.
The lawsuit alleges that the one councilman who voted against them is corrupt.
A former Councilman testified on behalf of Uma at a Council meeting. He said that by denying their application it will take even longer for a cannabis dispensary to open than if they just gave them an extension on their approval.
Notably, the NJCRC also granted Uma Flowers conversion to the annual license they needed to open last October.
Heady NJ has heard different stories on how long it takes to open a dispensary. Sometimes, when the place is in good condition, very little has to be done to open it as a dispensary. When more significant changes need to be made, it takes progressively longer.
Having to knock down a building filled with asbestos is indeed one of the worst horror stories.
Uma Flowers also doesn’t like that Morristown wanted to allow another cannabis dispensary and change the process it initially set up to award dispensary approvals.
Morristown Cannabis Dispensary Lawsuit
Given the Council’s attitude, Uma Flowers seemed to have no other choice but to sue them.
According to Morristown Green, “Uma asked Superior Court Assignment Judge Stuart Minkowitz to restore the license and to bar the town from issuing any other cannabis licenses until this dispute is resolved.”
The Judge indulged them and won’t allow Morristown to issue two approvals before the case is resolved.
He also granted them a perimeter of 1,000 feet from other dispensaries.
The lawsuit criticizes the CAB report and the reasons it gives for saying Uma Flowers should not be allowed to operate in town. He is also alleging it did not get a fair hearing to defend themselves.
Since they argued they did not get a fair hearing, it seems a decision was made prior to the meeting to revoke their approval.
They note that they needed special NJ Department of Environmental Protection permission to start construction since they’re in a flood zone.
Conflicts of Interest and a Lawsuit
Uma Flowers says that the attorney David Minchello, who is partners with NJ Assembly Speaker Craig Coughlin (D-19), has a conflict of interest since he is a CAB member, their attorney, and the town attorney.
Uma Flowers says it will lose millions of dollars if they lose the lawsuit.
So they want money for alleged defamation, and “for alleged violations of the state Open Public Meetings Act and the state constitution. The Council and the advisory board are named as defendants.”
Revoking a cannabis license or town approval is an intense thing. The NJ Cannabis Regulatory Commission (NJCRC) revoked Curaleaf’s license. But it was quickly reinstated days later.
The Morristown Council is also in the process of banning Delta 8 THC-intoxicating hemp products.
While the New Jersey legislature passed a bill passing what they call “intoxicating hemp” this past June 2024, Governor Phil Murphy (D) has yet to sign into law.
There are already a few cannabis dispensaries open in Morris County.
NJ Town Cannabis Lawsuits Galore
There have been lawsuits throughout New Jersey regarding problems with the local town cannabis approval process setup. For example, St. Peter’s University lost its lawsuit to stop the former Medusa, now Xena dispensary, from opening in Jersey City by McGinley Square.
Some anti-cannabis lawsuits have been defeated, like one from a fringe extremist anti-cannabis group.
Most of the lawsuits have only been confined to issues in one town. Thankfully, none of the outcomes have affected the process elsewhere in the state, like in New York.
The State of New Jersey has made solid progress bit by bit since 2021, when the 29-month delay over medical cannabis licenses was resolved.
