Tenth Circuit Affirms $6.4 Million Judgment in Marijuana Business Dispute, Remands Enforcement Over Federal Law Concerns

In a case presenting “a question about the nature and extent to which a federal court may act to resolve a dispute related to a marijuana business that operates legally under state law,” a divided panel of the U.S. Court of Appeals for the Tenth Circuit vigorously debated public policy concerns—namely, whether a federal court can enforce a judgment arising from a contract that is illegal under federal law. Ultimately, the court affirmed a $6.4 million breach of contract judgment but reversed and remanded the separate enforcement order. This remand instructs the district court to address whether enforcement would contravene federal drug laws, thereby violating public policy. For a detailed look at this significant legal issue, the original article is available here.