Summary
- The U.S. Court of Appeals for the Sixth Circuit has ruled that marijuana contracts are unenforceable in federal court, citing their illegal subject matter.
- This decision stems from the case Hello Farms Marketing MI v. GR Vending MI, where Hello Farms was awarded $31.8 million after a breach of contract.
- The court emphasized that despite Michigan's legalization of marijuana, federal law prohibits enforcement of agreements involving federally illegal activities.
- This ruling highlights the need for a change in federal policy to allow states to experiment with marijuana laws without the constraints of federal prohibition.
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