The City of Auburn Hills has filed a motion to dismiss a lawsuit filed by Jar Capital LLC, which alleges the city violated both state law and the U.S. Constitution when awarding cannabis licenses. The city asserts that Jar Capital's claims lack merit andUSA should be dismissed, as the company has no legal right to a license under federal law.
The motion, filed Tuesday in the U.S. District Court for the Eastern District of Michigan, argues that the federal court cannot aid Jar Capital in violating the Controlled Substances Act (CSA), as cannabis remains federally illegal. The city also emphasized that it holds discretion in awarding cannabis licenses, and Jar Capital, a first-time applicant, did not meet the necessary qualifications to receive one.
"Jar Capital's claim to a constitutional right for a license is unsubstantiated," the city stated in the motion. "Federal and Michigan courts have consistently dismissed similar cases where disgruntled applicants seek judicial intervention after being denied by municipalities."
The city further refuted Jar Capital's equal protection claims, pointing out that the company failed to demonstrate how it was treated unfairly compared to other applicants. The city's evaluation process, it argues, was consistent for all applicants, and Jar Capital did not score high enough to be granted a license.
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