Litigation for a Highly Regulated Industry
The Arizona cannabis industry has expanded rapidly since voters approved Proposition 207 in 2020, creating a complex and evolving legal environment for dispensaries, cultivators, processors, investors, and the many businesses that support them. Disputes in this industry have their own character — they arise in a heavily regulated space where contracts are complex, licenses are valuable, and regulatory compliance is both required and litigated.
SilverCain represents cannabis businesses and their principals in the full range of commercial disputes that arise in this industry throughout Arizona.
Cannabis Disputes We Handle
Our Approach
Cannabis litigation requires counsel who understand both the commercial dispute being litigated and the regulatory environment in which the business operates. Regulatory status, license validity, and compliance history often intersect with the underlying legal claims in ways that require integrated legal strategy. SilverCain brings commercial litigation depth to cannabis disputes across Arizona.
Contact SilverCain
Phone: +1-602-726-1244| Email: info@silvercain.com | 3101 N. Central Avenue, Suite 1410, Phoenix, AZ 85012
Yes. In Arizona, cannabis businesses operating in compliance with state law can enforce their contracts in Arizona courts. The fact that cannabis remains a controlled substance under federal law does not automatically void state-law contracts between cannabis businesses operating lawfully under Arizona's regulatory framework. However, federal law considerations can affect certain types of disputes and remedies, and counsel experienced in this intersection is important.
The most common disputes we see involve breaches of partnership and investor agreements (particularly as market conditions have changed since early legalization), commercial lease disputes (cannabis operations require specific real property arrangements that create unique conflicts), licensing and regulatory compliance disputes with ADHS or local authorities, and employment claims arising from the significant workforce in the industry.
Yes. Cannabis businesses can pursue trade secret misappropriation claims under Arizona's Uniform Trade Secrets Act and the federal Defend Trade Secrets Act for theft of proprietary cultivation techniques, formulations, customer lists, business methods, and other qualifying confidential information. Non-disclosure and non-compete agreements are also enforceable in appropriate circumstances under Arizona law.
Contact experienced legal counsel immediately. Regulatory enforcement actions in the cannabis space can threaten a business's license — its most valuable asset. How you respond in the early stages significantly affects the outcome. Do not communicate with regulatory authorities without counsel, preserve all relevant records, and begin assessing your compliance record and response strategy as quickly as possible.
Yes. We represent investors, operators, and principals in cannabis enterprises. Investor disputes — particularly disputes over equity, dilution, distributions, and management control — are increasingly common as the Arizona cannabis market has matured and valuations have fluctuated.
