CITY WINS POT SUIT

Judge Rules Against Med Dispensary

CLAREMONT - The city has won its lawsuit against former medical
marijuana dispensary operator Darrell Kruse, a Los Angeles County
Superior Court judge ruled this week.

Kruse now is permanently barred from operating a dispensary unless
specifically permitted by the city, and he also is responsible for
paying the city for its "costs of suit," Judge Dan T. Oki ruled Tuesday.

In September 2006, Kruse opened a dispensary without first obtaining
a business license from the city. The business was closed in February
after a temporary restraining order was issued by Oki.

Kruse and his attorneys argued that because the use of medical
marijuana and the operation of dispensaries are legal in California,
the city could not prohibit Kruse from operating his dispensary.

In his ruling, Oki disagreed.

"There is nothing in the text or history of the Compassionate Use Act
that suggests that the voters intended to mandate that municipalities
allow medical marijuana dispensaries to operate within their city
limits, nor to alter the fact that land use has historically been a
function of local government under their grant of police power," Oki wrote.

Oki's decision now stands as a temporary ruling. It will become
permanent after 10 days unless attorneys for the city or Kruse object.

Kruse could not be reached for comment. His attorney, Allison
Margolin, declined to comment.

Kruse first approached the city in the summer of 2006 about opening a
dispensary. He was told he would not be issued a business license
because the city did not allow marijuana dispensaries.

Believing he had the law on his side, Kruse opened in mid-September
2006 without first notifying the city.

In response to Kruse's inquiries, the City Council passed a
moratorium on dispensaries later that month. It was at that council
meeting that Kruse announced publicly that he had opened, prompting a
swift response from the city.

For the rest of the year, the city sent Kruse several letters
demanding that he close, and also issued him several citations and fines.

Kruse ignored all of it, and the city sued in December 2006 to force
him to close.

Mayor Ellen Taylor said she was "very glad" about the judge's ruling,
adding that "it proves the way we handled it was the correct way."

Kruse will be responsible for paying the city a "couple thousand"
dollars to cover its court-filing costs and other associated fees,
Assistant City Manager Tony Ramos said.

Ramos said he was not sure if Kruse is responsible for covering all
of the city's attorney costs.

With the city's case against Kruse now nearly resolved, the city will
consider an ordinance to allow one heavily regulated medical
marijuana dispensary.

The city's two-year moratorium on dispensaries will expire in late
September. Taylor said she expected the dispensary decision to be
made before that date.

In July, the council approved the one-dispensary idea in principle by
a 3-2 vote, with even some of those in favor expressing reservations.