Go Farm Hemp, out of Henderson, Nevada, filed a lawsuit this week against one of Canada's leading cannabis firms, Canopy Growth USA, LLC in the United States District Court for the Western District of New York. The full complaint, which is a $1.9 million federal lawsuit, can be read here. It alleges causes of action for breach of contract and for breach of good faith and fair dealing based on missed payments, bad crop turnouts and ill-advised spending.
Canopy Growth then filed a complaint against Go Farm Hemp and its ‘free bank account' mentality worth $12 million. The full complaint can be read here. Also filed in the United States District Court for the Western District of New York, the complaint alleges claims for breach of contract, breach of implied warranty of merchantability, fraud in the inducement involving several agreements, fraud, conversion, deceptive practices in violation of New York GBI sections 349 and 450, and constructive trust. Canopy had a few choice words for Go Farm Hemp, saying they ‘did not possess the skill, knowledge or necessary experience to farm over 1,000 acres of hemp' and complained of bad weather, insects and rain as excuses for poor crop harvests.
This shall be an interesting story to follow as these newer types of cases and disputes will surely begin to rise given the nature and unprecedented speed this emerging industry is experiencing and will continue to for months and years to come.
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