JUDGE ALLOWS REJECTED DISPENSARY TO STAY OPEN

Earlier this morning, a Superior Court judge denied Gilroy's first
legal attempt to shut down a medical marijuana dispensary that opened
last month without a business license.

The city asked the judge for a preliminary injunction to close down
MediLeaf, a cannabis collective on First Street, because it did not
comply with city code or federal law. The injunction would have
temporarily shut down the dispensary pending a trial between the city
and MediLeaf.

The judge, speaking from a courtroom in San Jose, said he could not
grant the preliminary injunction because the city did not demonstrate
that the dispensary would do "irreparable harm" by staying open until
and throughout the upcoming trial. Conversely, the judge said, it
would do MediLeaf irreparable damage to close it down.

The judge also castigated the city for not coming to the table with an
open hand, claiming the city acted incorrectly in discussing issues
related to the dispensary in a closed session in mid-November. At that
time, three councilmen boycotted the meeting. In the closed-door
meeting, the remaining four council members unanimously voted to take
legal action against the dispensary. Councilman Craig Gartman - who
boycotted the meeting - later voiced concerns that the closed-meeting
vote violated the Brown Act, which regulates open government in
California.