US Supreme Court grants cert to consider RICO claim brought by fired employee against medical marijuana company

One theme of my marijuana seminar is how the US Supreme Court has largely stayed out of broad legal uncertainties relating to marijuana reform for the past two decades (after very significant early rulings in United States v. Oakland Cannabis Buyers’ Co-op., 532 U.S. 483 (2001) and Gonzales v. Raich, 545 U.S. 1 (2005)).  But today, via this order list, the Justice took up a new marijuana case — sort of.  Here is how Jon Elwood at SCOTUSblog explains the case last week (links from the original):

 Medical Marijuana, Inc. v. Horn. Douglas J. Horn lost his job as a commercial truck driver after a drug test he took reflected the presence of tetrahydrocannabinol (“THC”), the active chemical compound in marijuana. Horn maintained that he ingested THC unwittingly by consuming a cannabis-derived product that Medical Marijuana, Inc. marketed as THC-free.

Horn sued, alleging injury under the Racketeer Influenced and Corrupt Organizations Act. The district court held that Horn lacked RICO standing because he sued for economic injuries from loss of earnings that were derived from his personal injury (exposure to THC). The U.S. Court of Appeals for the 2nd Circuit reversed, holding that although RICO only permits suit by a plaintiff “injured in his business or property” by racketeering activity, an economic injury resulting from personal injury sufficed.

Medical Marijuana, represented by Supreme Court veteran Lisa Blatt, petitions for review, arguing that the courts of appeals “are divided on whether economic damages arising from persual injuries … support civil RICO liability.” Medical Marijuana notes that the Supreme Court indicated – a bit offhandedly, in an opinion addressing another issue – that RICO’s private cause of action “exclud[ed], for example, personal injuries.” If granted, it should make for an interesting argument.

Cert has now been granted for an argument likely to take place in Ovtober or November this year. Not sure how much marijuana law and policy will become central to the briefing and argument, but it is interesting to see a marijuana-related case on the SCOTUS merits docket after a long dry spell.