The U.S. Supreme Court held a hearing today to deliberate on a case involving a truck driver, Douglas Horn, who was fired after testing positive for THC following the use of a hemp-based CBD product.
Horn claims the product, marketed as containing “0% THC” by companies including Medical Marijuana Inc. and Dixie Holdings LLC, led to his wrongful termination. His lawsuit hinges on the Racketeer Influenced and Corrupt Organizations (RICO) Act, a law typically reserved for combatting organized crime but also applicable to civil claims.
Horn, who had been a truck driver for 14 years, began using the hemp-based supplement to alleviate chronic pain from a car accident. The product, Dixie X, was advertised as THC-free and compliant with federal regulations. After testing positive during a random drug screening, Horn was dismissed from his job, despite his assertion that he had never used marijuana and relied on the product in good faith.
While most of his claims, including breach of warranty and unlawful business practices, were dismissed in lower courts, the U.S. Court of Appeals for the Second Circuit allowed his RICO claim for lost wages to proceed. Horn’s legal team argues that his firing directly harmed his business interests, including lost wages and benefits, which are compensable under the RICO statute.
The companies involved, including Red Dice Holdings LLC and Dixie Holdings LLC, have taken the case to the Supreme Court, contending that RICO should not apply to personal injury claims related to lost wages. They argue that only the 2nd and 9th Circuits have allowed such claims, while other circuits have not.
During the hearing, the justices expressed difficulty in determining whether Horn’s firing and subsequent economic harm were directly caused by the product. Justice Ketanji Brown Jackson noted that Horn voluntarily used the product and was not physically harmed by it, complicating the case’s application under RICO.
A ruling on the case is expected by June, which could set a precedent for how RICO is applied in cases involving hemp and CBD products.
