The National Organization for the Reform of Marijuana Laws (NORML) is urging a federal appeals court to reconsider a ruling that overturned a $31.8 million jury verdict against two Curaleaf subsidiaries, arguing that marijuana’s federal illegality should not automatically prevent businesses from recovering damages when contracts are breached.
The organization has submitted a brief supporting reconsideration by the U.S. Court of Appeals for the Sixth Circuit in Hello Farms Licensing MI, LLC v. GR Vending MI, LLC, adding its voice to a legal dispute with potentially significant implications for state-licensed marijuana businesses.
At the center of NORML’s argument is whether federal marijuana prohibition should categorically prevent courts from awarding financial damages to a company harmed by another business’s failure to fulfill a contractual agreement. The organization argues that federal illegality should not automatically eliminate the ability to pursue compensation for a breached marijuana supply contract.
The dispute stems from a November 2020 agreement between Michigan cultivator Hello Farms and Curaleaf subsidiaries GR Vending MI and CURA MI. Under the agreement, GR Vending committed to purchasing the company’s marijuana harvests for 2020 and 2021. However, after accepting approximately 2,000 pounds, the company stopped taking deliveries as marijuana prices declined.
Hello Farms sued for breach of contract, and a federal jury awarded the company $31.8 million in February 2025. Including prejudgment interest, the judgment subsequently increased to approximately $37.2 million.
In September, a three-judge panel of the Sixth Circuit reversed the verdict, concluding that federal courts cannot enforce agreements requiring conduct prohibited under the Controlled Substances Act, regardless of whether the businesses involved were operating legally under Michigan law.
As previously reported by The Marijuana Herald, Hello Farms filed a petition on October 8 asking the appeals court to reconsider the decision, arguing that allowing businesses to escape contractual obligations by invoking federal marijuana prohibition threatens the stability of regulated markets.
NORML’s involvement brings additional support from a national marijuana reform organization to the effort to overturn the ruling. The dispute raises a broader question for the industry: whether businesses operating in compliance with state marijuana laws can rely on federal courts to enforce commercial agreements when the other party refuses to honor them.
The Sixth Circuit’s jurisdiction covers Michigan, Ohio, Kentucky and Tennessee, making the outcome particularly consequential for marijuana businesses operating in those states.
The case is Hello Farms Licensing MI, LLC v. GR Vending MI, LLC, No. 25-1759.
