A Different Kind Of Illegality Defense

In our February issue of The Leaflet, we wrote about a cannabis-related action dismissed by a federal court in Colorado because it concluded that enforcing the contract at issue would violate the Controlled Substances Act.  (See full write up here).  And while cannabis litigants are no strangers to the perils of litigating in federal court, where the Controlled Substances Act can render otherwise valid commercial agreements unenforceable, a recent decision by a District Court in Washington State provides a new and interesting twist on the potential for defendants to assert illegality defenses to seemingly valid cannabis-related contracts.
 
In Polk v. Gontmaher, the plaintiff alleged that they had contributed to the success and profits of the company Northwest Cannabis Solutions and were entitled to a share of its profits generated by the company pursuant to a contract.  Polk v. Gontmaher, Case No. 2:18-cv-01434 (RAJ), 2021 WL 1090739 (W.D. Wash. March