Supreme Court could reshape CBD industry as truck driver sues for job loss

WASHINGTON — The U.S. Supreme Court began hearing arguments Tuesday in a significant case regarding the medical marijuana industry, focusing on whether a former truck driver, Douglas Horn, can sue under a federal law typically applied to combat organized crime.

Horn, a former commercial truck driver, purchased a CBD product advertised as THC-free to relieve back pain from a serious accident.

However, after consuming the product, Horn failed a drug test and lost his job because it contained THC, the psychoactive ingredient in marijuana.

Horn decided to sue the companies involved in selling and marketing the CBD product, claiming damages under the Racketeer Influenced and Corrupt Organizations Act, commonly known as RICO.

This federal law allows for the possibility of higher compensation in lawsuits.

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“The injury here is we were fired. That’s the injury to our business. Now, as a measure of compensation for that, the damages we claim are an amount equal to the salary we would have made and the other economic benefits we would have gotten,” Easha Anand, Horn’s attorney, said.

In contrast, attorneys representing the medical marijuana company argued that allowing Horn to pursue his case under RICO could financially burden small businesses by exposing them to frequent and costly lawsuits.

“Personal injuries are serious and may support state tort claims, but they are not the stuff of RICO,” said Lisa Blatt, representing the medical marijuana company.

This case does not only affect those in the marijuana industry. It could also have important implications for human trafficking victims.

The Human Trafficking Legal Center supports Horn’s case, stating that victims lack fair options for legal recourse without the capability to file suits under RICO, which is why they back Horn’s efforts to potentially expand these legal avenues.

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