KRUSE TRIAL TO BEGIN

As the city's legal battle with medical marijuana dispensary owner,
Darrell Kruse, continues in court on Monday, lawyers from both parties
are making last-minute changes to their strategies.

The city earlier this week made another offer to Mr. Kruse that would
release him of responsibility to repay any outstanding fines or
penalties associated with operating his dispensary without a business
license, City Attorney Sonia Carvalho said. Under the deal, Mr. Kruse
would also not be responsible for the city's legal expenses in
handling his case.

"The reason was primarily because Mr. Kruse is no longer operating
[his business,]" Ms. Carvalho said.

Mr. Kruse has not been in business in Claremont since February 2007,
when a Pomona court judge ordered him to cease operations.

The last ditch effort by the city to settle the case was rejected by
Mr. Kruse, who is ready to battle it out in front of a judge. He said
that since he already invested so much in legal fees, more than
$70,000 thus far, he did not want to back down now.

"I paid for the party, I might as well go and dance," Mr. Kruse
said.

Ms. Carvalho said the city would not meet Mr. Kruse's demand that he
receive a guarantee to be Claremont's sole medical marijuana provider
once an ordinance is crafted and approved. The reason, she said, was
that the city can not legally guarantee one potential candidate over
another and that the council has not approved the ordinance yet.

Lawyers for Mr. Kruse pushed their client to settle the case with the
city back in January when the city was asking him to pay roughly
$15,000 in legal fees and unpaid citations. He also rejected that
offer, saying he "would not pay the city a dime."

With their client unrelenting, his lawyers will likely argue that
medical marijuana is legal under state law and that Claremont failed
to have an ordinance in place when Mr. Kruse began his operation.

They are also considering bringing in witnesses to testify at the
trial on his behalf, Mr. Kruse said. However, many are either out of
town or unable to attend on Monday, he said. His lead attorney,
Allison Margolin, said she would not comment on the case before trial
begins.

One potential witness who was approached is another well-known name in
the Claremont medical marijuana debate, David Kasakove. Mr. Kasakove
has shown strong interest in becoming Claremont's medical marijuana
provider once an ordinance is in place and has recently been in
contact with city officials about his future plans.

He was approached by Mr. Kruse's attorneys to testify that he was able
to operate a medical marijuana growing business in town with the
city's knowledge and consent, bolstering their case that Mr. Kruse has
been singled out by the city.

City records show that Mr. Kasakove applied in July 2006 for a
business license for a medical marijuana collective but was denied his
application. There are no records of a medical marijuana growing
business, city accountant Candice Ponce said.

Mr. Kasakove said his initial reaction was not to testify, feeling
that he might be a "hostile witness," but planned to discuss the
situation with his lawyer before making a final decision.

"I don't really have anything good to say about the guy," Mr. Kasakove
said.

With the city council vote to allow a dispensary to operate in town
back in July, the city is in a precarious position regarding Mr.
Kruse. While city staff is busy crafting the ordinance to allow a
medical marijuana dispensary, the city will no longer argue in court
that federal law bars the sale of marijuana.

The city will continue to argue that he violated land use codes and
code enforcement for operating without a business license, Ms.
Carvalho said.

The marijuana ordinance is "95 percent completed" and will be
available for public review 2 or 3 weeks before the April 8 city
council meeting where it will be considered by the council, Ms.
Carvalho said.