The Supreme Court grappled Tuesday with whether a trucker fired for failing a drug test after ingesting a cannabis product can collect damages in a challenge centering on a law that usually targets organized crime and racketeering.
Douglas Horn sued Red Dice Holdings LLC, Medical Marijuana Inc. and Dixie Holdings LLC, which helped produce Dixie X, a hemp-based supplement, after he was randomly selected for a drug test as an employee for a commercial truck driving business and tested positive. He lost his job after having been a truck driver for 14 years.
He used the hemp product after suffering inflammation and chronic pain stemming from a car accident after being unsatisfied with prescription medication. He said the Dixie X advertisement said it yielded 0% THC, a cannabis relative, and was compliant with federal guidelines. He says he has never used marijuana.
Most of his charges against the companies — like breach of warranty and unlawful business practice claims — were dismissed in lower courts, but the 2nd U.S. Circuit Court of Appeals held that his civil liability charge under the Racketeer Influenced and Corrupt Organizations Act for lost wages could proceed.
The companies took the challenge to the Supreme Court, arguing only the 2nd and 9th Circuits have allowed RICO to apply to personal injury claims stemming from lost wages, but the 6th, 7th and 11th Circuits have not.
“It completely flips the statute on its head,” said Lisa Blatt, an attorney representing the marijuana companies.
Easha Anand, Mr. Horn’s attorney, said his personal injury wasn’t discovered until after his economic harm, arguing the dollar damages suffice for his RICO claim. “We think being fired is a classic injury to business. You can no longer carry out your livelihood,” she said.
RICO allows for civil lawsuits or criminal accountability for anyone who violates it. The federal law is aimed at combating corruption.
The justices struggled with where to draw the line between personal injury from taking the product or if the CBD, or cannabis, supplement was the proximate cause of Mr. Horn losing his job.
“He is not saying the product itself harmed him in any way,” said Justice Ketanji Brown Jackson. “He voluntarily took the product.”
“RICO is a tough thing to deal with,” said Justice Samuel A. Alito Jr.
The case is Medical Marijuana Inc., Dixie Holdings LLC, AKA Dixie Elixirs, Red Dice Holdings LLC, et. al. v. Douglas Horn.
A ruling is expected by the end of June.
• Alex Swoyer can be reached at aswoyer@washingtontimes.com.
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