Caroline's Cannabis Settles $1.2 Million Lawsuit with Uxbridge

On December 23, 2023, the Town of Uxbridge entered into an Agreement for Judgment with retail marijuana licensee Caroline's Cannabis, concluding a legal battle over host community agreement fees. Lawyers for Caroline's Cannabis argued that Uxbridge had collected the fees even though the business had not brought additional costs to the town. As a result of the settlement, the cannabis business is set to receive a refund of nearly $1.2 million.

For years, Massachusetts cities and towns like Franklin have been collecting 'community impact fees' from local cannabis business operators. These fees are meant to offset any potential costs or impacts that the businesses may have on the community. However, in the case of Caroline's Cannabis, it was determined that the fees collected by Uxbridge were not justified.

In what could prove to be a landmark deal, Massachusetts marijuana company Caroline's Cannabis reached a $1.2 million settlement with the town of Uxbridge. The settlement was reached in Worcester Superior Court, prompting cannabis dispensaries across the state to review their own agreements and fees with local municipalities.

The lawsuit, filed by Caroline's Cannabis in April 2022, sought the return of all Community Impact Fees (CIF) that the dispensary had paid to the town of Uxbridge. The legal battle highlighted the importance of ensuring that towns receiving cannabis community impact fees demonstrate a clear relationship between the costs of services provided to cannabis establishments and the fees they charge.

The settlement between Caroline's Cannabis and Uxbridge serves as a reminder to both cannabis businesses and local governments of the importance of fair and transparent agreements. As the cannabis industry continues to grow and evolve in Massachusetts, it is crucial that all parties involved work together to ensure a balanced and mutually beneficial relationship.