Georgia Atlas, Inc. v. Turnage

CourtDistrict Court, N.D. Georgia
DecidedMarch 28, 2022
Docket1:21-cv-03520
StatusUnknown

This text of Georgia Atlas, Inc. v. Turnage (Georgia Atlas, Inc. v. Turnage) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Georgia Atlas, Inc. v. Turnage, (N.D. Ga. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF GEORGIA ATLANTA DIVISION

GEORGIA ATLAS, INC. and ATLAS ILLINOIS, INC., Plaintiffs, v. ANDREW L. TURNAGE, in his Official Capacity Civil Action No. as Executive Director of the Georgia Access to 1:21-cv-03520-SDG Medical Cannabis Commission, and CHRISTOPHER EDWARDS, in his Official Capacity as Commissioner of the Georgia Access to Medical Cannabis Commission, Defendants.

OPINION AND ORDER This matter is before the Court on Plaintiffs Georgia Atlas, Inc. and Atlas Illinois, Inc.’s Motion for Preliminary Injunction [ECF 5]; Defendants Andrew L. Turnage and Christopher Edwards’s Motion to Dismiss Amended Complaint [ECF 7]; and Plaintiffs’ Motion for Leave to Amend Complaint [ECF 16]. Having carefully considered the parties’ briefing, and with the benefit of oral argument, the Court GRANTS Defendants’ motion, and DENIES Plaintiffs’ motions as moot. Because there are no facts Plaintiffs can allege that can make their federal claims viable, this action is DISMISSED. I. Background For purposes of this Order, the Court treats the well-pleaded allegations of the Amended Complaint as true. Bryant v. Avado Brands, Inc., 187 F.3d 1271, 1274 n.1 (11th Cir. 1999) (“At the motion to dismiss stage, all well-pleaded facts are

accepted as true, and the reasonable inferences therefrom are construed in the light most favorable to the plaintiff.”). In 2019, the Georgia General Assembly adopted the “Hope Act,” which created the Georgia Access to Medical Cannabis Commission (the Commission).1

The purpose of the Commission was to oversee licensing for in-state “cultivation, production, manufacturing, and sale” of low-THC oil to patients who are registered with the State.2 Despite these “lofty goals,” Plaintiffs contend that

implementation of the Hope Act “has been hampered by the misconduct of various parties.”3 That misconduct allegedly took the form of, among other things, underfunding of the Commission; a lack of transparency; exclusion of licensing applications from coverage under the Georgia Open Records Act; a lack of

technical expertise needed by the commissioners to assess applications;

1 ECF 4, ¶ 8. 2 Id. 3 Id. ¶¶ 12–13. inconsistent evaluation of license applications; and use of a “pay-to-play” system for awarding licenses.4 Relying on the Hope Act, Plaintiffs spent time and money to apply for a license.5 The Amended Complaint alleges Defendants violated Plaintiffs’

constitutional rights by “intentionally failing to properly implement the Hope Act.”6 Through use of a process that lacked “transparency, objectivity, and fairness,” Plaintiffs contend they were improperly denied a license.7 By

“prioritizing” minorities and Georgia corporations to receive licenses, the pleading asserts that the Hope Act discriminates against certain groups, which resulted in the wrongful denial of Plaintiffs’ applications.8 Despite this focus in the pleading, Plaintiffs’ counsel during oral argument framed the true harms as the

companies having to split themselves up in order to compete for a license and the inability to compete for a license on a fair playing field.9

4 Id. ¶¶ 14–19, 27–37, 47, 67. 5 Id. ¶ 43. 6 Id. ¶ 44. 7 Id. ¶¶ 44–45. 8 Id. ¶¶ 55. 9 ECF 18. As their names imply, Georgia Atlas is a Georgia corporation and Atlas Illinois is an Illinois corporation.10 Since the Hope Act requires that licenses may only be issued to in-state residents, Plaintiffs had to divide themselves and their resources to be eligible to apply.11 According to Plaintiffs, this violates the

Commerce Clause.12 Plaintiffs also assert that, despite their substantial employment of women, they were improperly denied the benefit of this structure because Defendants removed women from the definition of “minority.”13 Without

this change, Plaintiffs allege that they would have qualified for a license.14 Finally, Plaintiffs contend that they were denied their rights under the Georgia Purchasing Act and Georgia Procurement Manual.15 If Defendants had followed these processes, Plaintiffs assert they would have received a license.

10 ECF 4, ¶ 2. 11 Id. ¶ 57. 12 Id. ¶ 58. 13 Id. ¶¶ 67–69. 14 Id. ¶ 69. 15 Id. ¶¶ 72, 74–78. A. Procedural History Plaintiffs initiated this action on August 25, 2021.16 On November 9, they filed the Amended Complaint and a Motion for Preliminary Injunction.17 Defendants waived service on November 15 and moved to dismiss two days

later.18 On December 20, Plaintiffs filed, without leave, a purported Second Amended Complaint.19 On January 14, 2022, Plaintiffs sought leave to file that Second Amended Complaint.20 On January 20, Plaintiffs filed an affidavit in support of their preliminary injunction motion.21 The Court heard argument on

the pending motions on January 21.22 The Amended Complaint asserts five causes of action: under Section 1983 for violations of Plaintiffs’ due process rights (Count I), right to equal protection

16 ECF 1. 17 ECF 4; ECF 5. 18 ECF 6; ECF 7. 19 ECF 13. 20 ECF 16. The motion for leave did not attach a proposed amended pleading. Id. Counsel for Plaintiffs confirmed during argument that they seek permission to file the Second Amended Complaint filed on December 20, 2021 [ECF 13]. 21 ECF 17. Counsel for Defendants objected to this belated filing and asked that the Court not consider it. Because the affidavit is ultimately immaterial to the Court’s ruling, Defendants’ request is denied. 22 ECF 18. under the Commerce Clause (Count II), rights under the Georgia Administrative Procedures Act (Georgia APA) (Count III), and contract/Georgia Purchasing Act rights (Count IV). Plaintiffs seek declaratory relief that their rights were violated or that the Hope Act is unconstitutional; a declaration that Defendants have

violated the Georgia APA, the Georgia Purchasing Act, and the Georgia Procurement Manual; and, injunctive relief to enjoin “further implementation of the aforementioned policies” or enjoin the Hope Act in its entirety.23 Lastly,

although framed as a cause of action (Count V), Plaintiffs contend that the Supremacy Clause preempts the Hope Act. They ask the Court to declare that the Hope Act violates the Supremacy Clause and enjoin its enforcement.24 II. Applicable Legal Standards

Defendants seek dismissal under both Rule 12(b)(1), for lack of standing, and Rule 12(b)(6), for failure to state a claim. A. Standing “Because standing is jurisdictional, a dismissal for lack of standing has the

same effect as a dismissal for lack of subject matter jurisdiction under Fed. R. Civ. P. 12(b)(1).” Stalley ex rel. U.S. v. Orlando Reg’l Healthcare Sys., Inc., 524 F.3d 1229,

23 ECF 4, ¶¶ 52, 64, 70, 80. 24 Id. ¶ 88. 1232 (11th Cir. 2008) (quoting Cone Corp. v. Fla. Dep’t of Transp., 921 F.2d 1190, 1203 n.42 (11th Cir. 1991)). Article III of the Constitution limits federal courts to consideration of cases and controversies. U.S. Const. art. III, § 2. The doctrine of standing “is an essential and unchanging part of the case-or-controversy

requirement of Article III.” Lujan v. Defs. of Wildlife, 504 U.S. 555, 560 (1992). As a result, the Court must address standing before delving into Defendants’ claims of immunity. See, e.g., Calderon v. Ashmus, 523 U.S. 740

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Bryant v. Avado Brands, Inc.
187 F.3d 1271 (Eleventh Circuit, 1999)
United States v. Jeffers
342 U.S. 48 (Supreme Court, 1951)
Rakas v. Illinois
439 U.S. 128 (Supreme Court, 1979)
Baker v. McCollan
443 U.S. 137 (Supreme Court, 1979)
Graham v. Connor
490 U.S. 386 (Supreme Court, 1989)
Lujan v. Defenders of Wildlife
504 U.S. 555 (Supreme Court, 1992)
Calderon v. Ashmus
523 U.S. 740 (Supreme Court, 1998)
Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
American Dental Assoc. v. Cigna Corp.
605 F.3d 1283 (Eleventh Circuit, 2010)
Gonzales v. Raich
545 U.S. 1 (Supreme Court, 2005)
County of Butte v. Superior Court
175 Cal. App. 4th 729 (California Court of Appeal, 2009)
Spokeo, Inc. v. Robins
578 U.S. 330 (Supreme Court, 2016)
L. Lin Wood, Jr. v. Brad Raffensperger
981 F.3d 1307 (Eleventh Circuit, 2020)

Cite This Page — Counsel Stack

Bluebook (online)
Georgia Atlas, Inc. v. Turnage, Counsel Stack Legal Research, https://law.counselstack.com/opinion/georgia-atlas-inc-v-turnage-gand-2022.