If you’re a Las Vegas resident, you’re probably aware that the consumption and selling of cannabis in the state of Nevada was made legal as of the 2016 presidential elections. But what still isn’t legal in Nevada is refusing to pay what is owed to business partners, landlords, or employees of a cannabis dispensary business.
And as reported by Channel 8 News Now Las Vegas, CWNevada, parent company of Canopi Cannabis Dispensary, is being sued for all three instances in what is a current total of 7 lawsuits filed against the parent company.
Brian Padgett, who manages CWNevada, claims that he hasn’t “made a single cut in pay” on any of his 125 employees, yet and still, employees allege lack of compensation.
Furthermore, as of May 3, CWNevada owed about $523,000 in combined taxes and rent. And while an attempt to file for bankruptcy was made, a federal judge threw out the case, leaving CWNevada’s responsibility to pay up still intact. So with that, it leaves one under the impression that no one is getting paid anytime soon.
Now, amongst the list of lawsuits, a business partner is suing for mismanagement of the business.
When it comes to the mismanagement of a business and its funds, most cases involve some form of negligence, in which case, the already existing lawsuits involving lost wages, lapsed health insurance, and other general damages will likely bolster their case.
What also needs to be determined is if the “reasonable person” would be harmed by the act of negligence, but it’s difficult to prove how someone would not be harmed by unpaid wages.
In the meantime, it’s been made known that a receiver was temporarily appointed to take care of the company’s business woes, but until then, it just so happens that according to court documents found by Channel 8 News, the Nevada Department of Taxation’s marijuana enforcement division has suspended their registration and licenses for their North Las Vegas and Downtown locations back in the spring.
So despite the legalization of selling cannabis in Nevada, for the most part, it seems it’s legal for other registered businesses, but not for them.