On Tuesday, the Supreme Court heard a case involving a New York state man who lost his job as a commercial truck driver after failing a drug test due to cannabidiol (CBD) he claimed was falsely marketed as free of the psychoactive ingredient found in marijuana.
The justices reviewed an appeal from Medical Marijuana Inc., which challenges a lower court’s ruling allowing Douglas Horn to pursue a civil lawsuit under the Racketeer Influenced and Corrupt Organizations (RICO) Act. This federal law, enacted in 1970, aims to combat organized crime and its economic consequences.
Horn sought damages under RICO after he purchased a CBD tincture called Dixie X in 2012, which the company advertised as a natural pain reliever with no tetrahydrocannabinol (THC). Following a random drug test that detected THC in his system, Horn lost his trucking job of over a decade. He maintains that he does not use marijuana.
During the arguments, some justices appeared to support the company’s stance that Horn’s job loss did not constitute the type of business injury Congress intended to protect under the RICO Act. Justice Brett Kavanaugh raised concerns about the implications of broadening the definition of business injury, cautioning against allowing plaintiffs to frame personal injuries as business-related. He emphasized the need for clearer congressional intent if the Court were to accept such claims.
Lisa Blatt, representing Medical Marijuana, argued that permitting Horn’s lawsuit to move forward would lead to federalizing personal injury cases better suited for state courts. She stated, “It is utterly implausible that Congress federalized every slip and fall involving RICO predicates.”
However, other justices seemed inclined to support Horn’s case. Justice Elena Kagan questioned Blatt, suggesting that losing a job does indeed harm one’s business. She pointed out that the statutory language does not differentiate between the causes of harm, stating, “If you’re harmed in a way that’s in your business or property… then you’re entitled to threefold the damages.”
In 2015, Horn and his wife filed a lawsuit in federal court in New York, alleging that Medical Marijuana and its affiliates violated RICO provisions. Horn had the tincture tested independently, confirming the presence of THC. His suit claims a “pattern of racketeering activity,” including violations of the federal Controlled Substances Act and various forms of fraud, caused his job loss.
A federal trial judge dismissed Horn’s civil RICO claim, but the 2nd U.S. Circuit Court of Appeals in New York reversed that decision, prompting Medical Marijuana’s appeal to the Supreme Court. The justices are expected to issue a ruling by the end of June.
