WASHINGTON, April 2 (Reuters) - The U.S. Supreme Court
ruled on Wednesday against Medical Marijuana Inc ( MJNA ) in
its bid to fend off a lawsuit by a commercial truck driver who
was fired for failing a drug test after taking cannabidiol, or
CBD, that he said was falsely sold as lacking the psychoactive
ingredient present in marijuana.
The justices, in a 5-4 decision, upheld a lower court's
ruling that had allowed plaintiff Douglas Horn to bring a civil
lawsuit against the San Diego-based company under the Racketeer
Influenced and Corrupt Organizations Act. This 1970 federal law,
known as RICO, was designed to crack down on organized crime and
its economic impact.
The RICO law's civil provisions permit triple damages for
successful lawsuits by "any person injured in his business or
property" as a result of certain actions by a defendant. At
issue in the case was whether Horn's loss of employment was the
kind of business injury Congress meant to guard against when it
enacted the law.
Horn, who was ailing from injuries sustained in a trucking
accident, in 2012 purchased a CBD tincture called Dixie X. It
was advertised as a natural pain reliever containing no
tetrahydrocannabinol (THC), the psychoactive ingredient in
marijuana that causes a high.
After a random drug test ordered by his employer detected
THC in his system, Horn was fired from his trucking job that he
had held for more than a decade. Horn has said he is not a
marijuana user.
Horn and his wife, Cindy, in 2015 brought a lawsuit in
federal court in New York state seeking monetary damages,
claiming, among other things, that Medical Marijuana ( MJNA ) and
associated companies violated the RICO Act's provisions. Horn
had the tincture independently tested in a laboratory, which
confirmed that the product contained THC.
According to the suit, a "pattern of racketeering activity"
by the companies - including violations of the federal
Controlled Substances Act, as well as mail fraud and wire fraud
- inflicted a business or property injury on Horn in the form of
his firing.
A federal trial judge ruled against Horn's civil RICO claim.
The New York-based 2nd U.S. Circuit Court of Appeals reversed
the judge's decision, prompting Medical Marijuana's ( MJNA ) appeal to
the Supreme Court.
The Supreme Court heard arguments in the case on Oct. 15.