in a case that potentially could have catastrophic effect on the cannabis industry.  At issue is whether the 10th Circuit Court of Appeals will allow private parties to sue state-licensed cultivations and dispensaries under RICO  for what are, essentially, nuisance issues.   Safe Streets, a Washington, D.C.-based anti-drug and anti-crime organization, filed the lawsuit and

The 10th Circuit court ruled on August 21, 2015, that neither Chapter 7 nor 13 is available to a marijuana business owner.  The court stated that because of “the federally illegal marijuana based income stream, the debtors cannot fund a plan without breaking the law, and are therefore ineligible for relief under Chapter 13.”