Michigan Court of Appeals Case Rules Medical Marihuana Dispensaries and Patient-to-Patient Sale Violates the Public Health Code

On August 23, 2011, the Michigan Court of Appeals ruled that the patient-to-patient sale of medical marihuana is an enjoinable public nuisance,  meaning that the State can discontinue the activity due to its negative effects on the surrounding community, and that the operation of medical marihuana dispensaries violates the Michigan Public Health Code (PHC). The Court further found that the sale of medical marihuana is not excused by the Michigan Medical Marihuana Act (MMMA) because the MMMA does not address patient-to-patient sales of marihuana.

In State of Michigan v. McQueen, the defendants owned and operated Compassionate Apothecary, LLC, a medical marihuana dispensary by which members who are either registered qualifying patients or their primary caregivers would purchase marihuana that other members had grown in excess of their medical needs and stored in lockers rented from the Apothecary. The Apothecary would facilitate the purchase and collect a 20% service fee on each sale.

The Michigan Court of Appeals found that the PHC governs the manufacturing, distributing, prescribing, and dispensing of controlled substances. The PHC defines marihuana as a Schedule 1 controlled substance, meaning it has been found to have a high potential for abuse and has no accepted medical use in treatment or lacks accepted safety for use in treatment under medical supervision. As such, except for certain circumstances involving medical research by a licensed practitioner, the PHC makes the possession of marihuana a misdemeanor offense and the manufacture, creation, and delivery of marihuana a felony offense.

The Court further found that the MMMA, which excuses the medical use of marihuana in certain circumstances, does nothing to change this rule under the PHC.  The MMMA does not "legalize" marihuana, but simply offers certain circumstances where criminal liability for its use can be avoided. According to the Court, the MMMA does not authorize dispensaries and does not state that patients can sell their marihuana to other patients. As such, the MMMA does not "excuse" this activity, and rather, it is governed by the PHC, which makes the sale of marihuana illegal.
 

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