The ruling emerged from a case in Queens, where the sheriff’s office found suspected cannabis and cannabis products being sold without a license. Following the state’s recent budgetary provisions, local authorities gained powers to inspect and immediately shut down suspected illegal shops during administrative hearings. However, the final decision on whether to close the business remained with the sheriff’s office, which could override hearing officers’ recommendations.
In the Queens case, Judge Kevin Kerrigan characterized the administrative hearing as “meaningless” or even a “potential spectacle.” He argued that if the final arbiter has the authority to disregard the hearing, it negates any meaningful opportunity for owners to be heard, raising significant concerns about due process.
In response, Mayor Eric Adams’ administration filed a notice of appeal. Spokesperson Liz Garcia stated, “Illegal smoke shops and their dangerous products jeopardize young New Yorkers and our quality of life, and we continue to take action against illegal storefronts to protect communities from the health and safety risks posed by these operators.”
Attorney Lance Lazaro, representing the Queens store, Cloud Corner, predicted that the ruling would allow every closed store to reopen and sue for damages related to lost business and reputational harm. He emphasized the significant losses that could arise from this decision.
After Cloud Corner’s closure, its owner argued in an administrative hearing that the store was closed when the sheriff’s office conducted its inspection and that no cannabis products were being sold. Although the hearing officer agreed, the sheriff’s office opted to uphold the closure order for one year.
The judge’s ruling highlights the ongoing tensions surrounding the cannabis industry in New York City, as the city grapples with balancing enforcement against illegal shops while respecting the rights of business owners. The outcome of the appeal will be closely watched as it could set a precedent for future actions against unauthorized cannabis retailers.
