Alabama Department of Public Health and Scott Harris, M.D., in his official capacity as State Health Officer v. TSTL Holdings, LLC (Appeal from Montgomery Circuit Court: CV-23-900643).

CourtCourt of Civil Appeals of Alabama
DecidedApril 25, 2025
DocketCL-2024-0604
StatusPublished

This text of Alabama Department of Public Health and Scott Harris, M.D., in his official capacity as State Health Officer v. TSTL Holdings, LLC (Appeal from Montgomery Circuit Court: CV-23-900643). (Alabama Department of Public Health and Scott Harris, M.D., in his official capacity as State Health Officer v. TSTL Holdings, LLC (Appeal from Montgomery Circuit Court: CV-23-900643).) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Alabama Department of Public Health and Scott Harris, M.D., in his official capacity as State Health Officer v. TSTL Holdings, LLC (Appeal from Montgomery Circuit Court: CV-23-900643)., (Ala. Ct. App. 2025).

Opinion

Rel: April 25, 2025

Notice: This opinion is subject to formal revision before publication in the advance sheets of Southern Reporter. Readers are requested to notify the Reporter of Decisions, Alabama Appellate Courts, 300 Dexter Avenue, Montgomery, Alabama 36104-3741 ((334) 229-0650), of any typographical or other errors, in order that corrections may be made before the opinion is published in Southern Reporter.

ALABAMA COURT OF CIVIL APPEALS OCTOBER TERM, 2024-2025 _________________________

CL-2024-0604 _________________________

Alabama Department of Public Health and Scott Harris, M.D., in his official capacity as State Health Officer

v.

TSTL Holdings, LLC

Appeal from Montgomery Circuit Court (CV-23-900643)

EDWARDS, Judge.

In July 2022, TSTL Holdings, LLC ("TSTL"), began manufacturing

and distributing various foods containing cannabinoids found in CL-2024-0604

industrial hemp, as that term is defined in Ala. Code 1975, § 2-8-381(4). 1

In January 2023, after receiving a complaint that TSTL was

manufacturing foods without a proper license from the Alabama

Department of Public Health ("ADPH"), Rita Wagnon, the food-protection

supervisor employed by the Etowah County Department of Health,

visited TSTL's premises to perform an inspection. Wagnon explained to

TSTL's personnel that ADPH had regulatory authority over the

production of food in Alabama and that ADPH took the position that

cannabinoids could not legally be added to food products in the State of

Alabama. Shortly thereafter, on January 12, 2023, ADPH issued two

separate food-condemnation orders notifying TSTL that it could not sell

any and all food products that it had manufactured because its facility

had not been properly permitted and because "[f]ood or food products

containing cannabidiol or cannabidiol derivatives shall not be

manufactured or sold within the state of Alabama." ADPH amended the

food-condemnation order on March 13, 2023, to include as a basis for the

order that "[f]ood or food products containing cannabidiol or cannabinoid

1Based on exhibits in the record on appeal, the foods containing

cannabinoids manufactured by TSTL include lollipops, gummies, brownies, rice-cereal treats, chocolate bars, and honey. 2 CL-2024-0604

derivatives shall not be manufactured or sold within the State of

Alabama."

On May 15, 2024, TSTL commenced in the Montgomery Circuit

Court ("the trial court") an action against ADPH and Scott Harris, M.D.,

in his official capacity as State Health Officer ("the SHO"), seeking a

judgment declaring that ADPH did not possess the authority to regulate

hemp products, including food, and requesting both a preliminary and a

permanent injunction prohibiting ADPH and the SHO from condemning

TSTL's food products based on the position of ADPH and the SHO that

Alabama does not permit the addition of cannabidiol or cannabinoid

derivatives to food. 2 The trial court entered a temporary restraining

order requiring ADPH and the SHO to permit TSTL to continue to

conduct its business pending resolution of the declaratory-judgment

2TSTL initially pursued its administrative remedies by filing an

appeal to the State Board of Health from the January 2023 and the March 2023 food-condemnation orders. The food-condemnation orders were apparently upheld, but the trial court indicates in its judgment that "the administrative case was stayed." In any event, our supreme court has recognized an exception to the doctrine of the exhaustion of administrative remedies " ' "[w]hen (a) the question raised is one of interpretation of a statute." ' " LEAD Educ. Found. v. Alabama Educ. Ass'n, 290 So. 3d 778, 784 n.8 (Ala. 2019) (quoting City of Graysville v. Glenn, 46 So. 3d 925, 929 (Ala. 2010), quoting in turn Ex parte Lake Forest Prop. Owners' Ass'n, 603 So. 2d 1045, 1046-47 (Ala. 1992)). 3 CL-2024-0604

action. On June 6, 2023, and February 24, 2024, the trial court held a

trial regarding TSTL's claims.

After receiving posttrial briefs from the parties, the trial court

entered a judgment on July 10, 2024, declaring that "the manufacture

and sale of edible hemp products in Alabama is legal under the plain

language of [the Alabama Industrial Hemp Research Program Act ('the

Hemp Act'), Ala. Code 1975, § 2-8-380, et seq.,] and consistent with the

intent of the Alabama legislature." Although the trial court recognized

that ADPH "has regulatory authority over food manufactured and sold in

Alabama pursuant to Ala. Code 1975, §§ 22-2-2, 22-10-1, et seq., 22-20-5

and implementing regulations," it concluded that ADPH lacked "the

authority to adopt or implement regulations to prohibit the manufacture

or sale of edible hemp products by Alabama companies or otherwise

undermine the intent of the Legislature."3 Moreover, the trial court

opined that ADPH and the SHO "do[] not have the authority to deny

[TSTL], or any other Alabama company, a permit based on the fact that

[it is] manufacturing or selling food containing hemp as defined in the

3Notably, the regulations relied upon by the SHO were not recently

adopted or implemented and had been in existence, in their most current form, since December 2014. 4 CL-2024-0604

[Hemp] Act." Based on those conclusions, the trial court declared the

January 2023 and March 2023 food-condemnation orders to be void and

further ordered ADPH and the SHO to issue to TSTL "the permit or

permits required to conduct its business." In addition, the trial court

entered a permanent injunction enjoining ADPH and the SHO "from

taking any action to prohibit Alabama companies from manufacturing or

selling edible hemp products provided that they comply with the

statutory definitions" and "from denying permits to any company solely

based on the fact that [it is] seeking to manufacture or sell edible hemp

products that comply with the statutory definitions."

ADPH and the SHO appealed the July 2024 judgment to the

Alabama Supreme Court. Our supreme court transferred the appeal to

this court, after that court concluded that, pursuant to Coprich v. Jones,

[Ms. SC-2023-0675, June 21, 2024] ___ So. 3d ___ (Ala. 2024), this court

was the appropriate appellate forum; the supreme court's transfer order

also stated that, if this court were to determine that the amount in

controversy exceeded the $50,000 monetary limit of this court's general

civil appellate jurisdiction, this court must nonetheless hear the appeal

pursuant to our supreme court's discretionary-transfer authority under

5 CL-2024-0604

subsection (6) of Ala. Code 1975, § 12-2-7. In compliance with our

supreme court's directives, see Ala. Code 1975, § 12-3-16, we proceed to

consider the appeal.

We must first address a jurisdictional issue. Insofar as TSTL

named ADPH as a defendant in its declaratory-judgment action, that

action is barred by sovereign immunity. See Alabama Dep't of Transp. v.

Harbert Int'l, Inc., 990 So. 2d 831, 841 (Ala. 2008) (explaining that state

agencies are immune from suit and that "only State officers named in

their official capacity -- and not State agencies -- may be defendants in

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Alabama Department of Public Health and Scott Harris, M.D., in his official capacity as State Health Officer v. TSTL Holdings, LLC (Appeal from Montgomery Circuit Court: CV-23-900643)., Counsel Stack Legal Research, https://law.counselstack.com/opinion/alabama-department-of-public-health-and-scott-harris-md-in-his-official-alacivapp-2025.