An arbitration award of more than $300,000 to cannabis wholesaler C4 Distribution affirmed the company’s beliefs that a California city had wrongly enforced a contract—and that, despite opposing counsel’s claims, a “scrivener’s error” was not to blame.
California cooperative RD Lynwood, represented by Venable, and the city of Lynwood, California, sued C4 in November 2020, alleging the cannabis company owed more than $40,000 in unpaid city taxes. However, JAMS arbitrator Stephen J. Sundvold found the plaintiffs’ claim was based on a misinterpretation of a development agreement between the parties.
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