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City of West Kelowna entitled to strip business licences for 2 pot shops: Judge

City pursuing more legal action to collect more than $140,000 from Black Crow, Okanagan Cannabis
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The B.C. Supreme Court害羞草研究所檚 July 4, 2019, decision was in favour of the City of West Kelowna in regards to cancelling and not renewing business licences for Black Crow Herbals and Okanagan Cannabis Solutions Society in 2017. (West Kelowna)

The City of West Kelowna was entitled to cancel two cannabis dispensaries害羞草研究所 business licences, a . The city was awarded its legal costs and now it will pursue further legal action against Black Crow Herbals Association and Okanagan Cannabis Solutions Society to collect fines totalling $74,000 and $76,000 respectively.

害羞草研究所淭he city originally sought a court order to close down these two dispensaries after they refused to comply with the Business Licence Bylaw and the Zoning Bylaw,害羞草研究所 communications supervisor Kirsten Jones said in a statement.

In response, the two pot shops challenged the validity of the bylaws.

害羞草研究所淭he dispensaries also argued that because they had been operating before the bylaw changed, they ought to be permitted to continue as a lawful nonconforming use,害羞草研究所 Jones said.

Black Crow obtained a business licence from the City of West Kelowna in October 2014害羞草研究所攆our years before the federal government legalized the recreational use of marijuana. The shop, which was registered under the provincial Societies Act, operated the retail storefront on Westgate Road, while its second location, the Okanagan Cannabis Solutions Society operated on Main Street with no business licence.

READ MORE: West Kelowna pot shops back in court

READ MORE: West Kelowna pot shop says it will stay open

It was registered as a non-profit society, as non-profits do not require business licences from the city.

Mike Cain, a senior bylaw officer for the City of West Kelowna, said Black Crow害羞草研究所檚 October 2014 licence application did not say it was a retailer, but rather a compassion club.

害羞草研究所淲e are a private compassion club dedicated to providing safe access to medical marijuana to qualified patients,害羞草研究所 the application read. 害羞草研究所淲e also provide information, literature and doctor referrals.害羞草研究所

In October 2017, city council stripped the store of its business licence based on a staff recommendation, as the store was operating contrary to the Criminal Code and several city bylaws. A letter was sent to Black Crow less than a week later warning the operators that enforcement action would follow if the retailer continued to keep the shop open.

READ MORE: Feedback: West Kelowna taking on pot dispensaries

But that害羞草研究所檚 what it did. Cain followed up with both the store and the society and in early November 2017, observed they were both still operating.

The dispensaries, as they described themselves, reapplied for business licences a month later on Dec. 18, but Cain denied them as they were still in breach of the Criminal Code.

When the case was brought to the B.C. Supreme Court, the city sought payment for the marijuana retail outlets害羞草研究所 害羞草研究所渇lagrant disregard害羞草研究所 for the bylaws, including zoning bylaws.

The court said the city would have to apply for an enforcement order if necessary and the Black Crow and Okanagan Cannabis害羞草研究所 petitions were dismissed.

The judge declined the City of West Kelowna害羞草研究所檚 order for special costs.

害羞草研究所淭here is no suggestion here that there was misconduct in the litigation,害羞草研究所 the judge wrote in the decision. 害羞草研究所淎s to the flouting of the bylaws, the city itself played at least some role, for a time, in leading the respondents to believe they could carry on business as they did, and the points raised by the respondents were not frivolous.害羞草研究所

The courts awarded the city the legal costs害羞草研究所攁 total that has yet to be determined害羞草研究所攂ut the city isn害羞草研究所檛 done yet.

害羞草研究所淭he city will be pursuing legal action to collect the fines due stemming from a separate legal action against these two businesses,害羞草研究所 Jones said. 害羞草研究所淭he total fines are $74,000 for Black Crow and $76,000 for Okanagan Cannabis Solutions.害羞草研究所



Caitlin.clow@kelownacapnews.com

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