An Arizona judge has dismissed a lawsuit claiming state officials improperly awarded a marijuana dispensary license outside the deadlines set in law.
The case was filed by Mason Cave, owner of Arizona Wellness Center Springerville, against the Arizona Department of Health Services (ADHS), Governor Katie Hobbs, her chief of staff Chad Campbell, and Sherri Dunn, LLC. Cave argued that the license award violated both the state constitution’s Gift Clause and prior court orders.
Maricopa County Superior Court Judge Joseph Kreamer, ruling from the bench, found that Cave and his company lacked standing to sue. Even if standing had been established, Kreamer rejected the claims outright.
“I agree with the defendant’s arguments down the line,” Kreamer said.
The dispute stemmed from the rollout of dual-use dispensary licenses under Arizona’s 2020 voter-approved legalization law. Sherri Dunn, LLC, originally applied for a certificate in 2016 but was denied because La Paz County already had a dispensary. After a separate lawsuit, the Arizona Supreme Court ruled the department erred in denying certificates where counties had no dispensaries. Sherri Dunn, LLC later received its certificate in 2021 and applied for a license in 2022, but it fell outside the application window.
Rather than risk losing in the Court of Appeals, ADHS settled with the company and issued the license. Cave argued the settlement was unlawful and influenced by communications between a lobbyist and Campbell, though the court gave little weight to those allegations.
Kreamer dismissed the Gift Clause claim, noting that professional and regulatory licenses do not fall under its provisions. He also rejected the ultra vires claim, pointing out that settlements are a routine part of litigation.
“The plaintiffs have a generalized desire to compete, that’s not good enough,” Kreamer said, emphasizing the absence of a concrete personal stake.
Attorneys for ADHS and the governor’s office described the claims as baseless, while Cave’s attorney maintained that the department cannot ignore statutory rules, even in a settlement.
All motions to dismiss were granted, though Cave’s legal team has not ruled out an appeal. Neither Cave’s attorney nor the governor’s office offered further comment following the ruling.
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