Kuehn v. Pillen

Nebraska Supreme Court·Decided September 11, 2026·No. S-25-503·Published

Opinion

Nebraska Supreme Court Online Library www.nebraska.gov/apps-courts-epub/ 09/11/2026 08:06 AM CDT

- 297 -

Nebraska Supreme Court Advance Sheets 322 Nebraska Reports

KUEHN v. PILLEN Cite as 322 Neb. 297

John Kuehn, appellant, v. James D. Pillen, in his official capacity as Governor of Nebraska, et al., appellees.

___ N.W.3d ___

Filed September 11, 2026. No. S-25-503.

1. Motions to Dismiss: Appeal and Error. Appellate review of an order granting a motion to dismiss is de novo. 2. Standing: Jurisdiction: Parties. Standing is a jurisdictional component of a party’s case, because only a party who has standing may invoke the jurisdiction of a court; determination of a jurisdictional issue which does not involve a factual dispute presents a question of law. 3. Motions to Dismiss: Pleadings. To prevail against a motion to dismiss, the pleader must allege sufficient facts, taken as true, to state a claim to relief that is plausible on its face. 4. Standing: Jurisdiction: Pleadings: Evidence: Words and Phrases. A court’s consideration of standing will vary depending on when the issue is raised during the progression of a case. If standing is challenged at the pleadings stage, before an evidentiary hearing and before any evidence outside of the pleadings is admitted, it is deemed a facial challenge. In considering a facial challenge, a court will typically review only the pleadings to determine whether the plaintiff has alleged sufficient facts to establish standing. But when an issue of standing is presented and the court holds an evidentiary hearing and reviews evidence outside the pleadings, it is considered a factual challenge. 5. Standing: Jurisdiction: Parties. Standing refers to whether a party had, at the commencement of the litigation, a personal stake in the outcome of the litigation that would warrant a court’s exercise of its subject matter jurisdiction and remedial powers on that party’s behalf.

6. Standing: Parties. To have standing, the plaintiff must have some legal or equitable right, title, or interest in the subject matter of the controversy.

Nebraska Supreme Court Advance Sheets 322 Nebraska Reports

KUEHN v. PILLEN Cite as 322 Neb. 297

7. Standing: Proof. To show standing, it is generally insufficient for a plaintiff to have merely a general interest common to all members of the public. 8. Standing: Jurisdiction: Proof. A party invoking a court’s or tribunal’s jurisdiction bears the burden of establishing the elements of standing. 9. Standing. Common-law standing generally focuses on whether the litigant has suffered or will suffer an injury in fact.

10. Equity: Taxation: Injunction. Because taxpayers have an equitable interest in public funds, a resident taxpayer may bring an action to enjoin the illegal expenditure of public funds raised for governmental purposes.

Appeal from the District Court for Lancaster County: Susan I. Strong, Judge. Affirmed.

Andrew LaGrone, of La Grone Law, L.L.C., and Edward D. Greim and Katherine Mitra, pro hac vice, of Graves Garrett Greim, L.L.C., for appellant.

Michael T. Hilgers, Attorney General, Zachary B. Pohlman, and Cody S. Barnett, for State appellees.

Jason W. Grams and Karson S. Kampfe, of Grams Law, L.L.C., for Nebraska Medical Cannabis Commission appellees.

Alexander S. Arkfeld and Daniel J. Gutman, of Gutman Law Group, for appellees Anna Wishart, Crista Eggers, and Adam Morfeld.

Funke, C.J., Cassel, Stacy, Papik, Freudenberg, Bergevin, and Vaughn, JJ.

Funke, C.J.

INTRODUCTION

John Kuehn appeals the order of the district court for Lancaster County dismissing his complaint for declaratory and injunctive relief after determining that he lacked standing. Kuehn sought to challenge the constitutionality of medical cannabis laws that were enacted pursuant to initiative petitions that were approved by the voters in the November 2024

Nebraska Supreme Court Advance Sheets 322 Nebraska Reports

KUEHN v. PILLEN Cite as 322 Neb. 297

general election. The defendants moved to dismiss Kuehn’s complaint on the basis that he lacked standing. Kuehn conceded that he had not suffered an injury in fact, but he asserted he had standing based on exceptions, including taxpayer standing and standing for a matter of great public concern. The district court rejected Kuehn’s arguments, found that he lacked standing, and dismissed his complaint without prejudice. We affirm the district court’s order.

BACKGROUND

Prior to the November 2024 general election, Kuehn filed a preelection challenge to the legal sufficiency of two initiative petitions that were aimed at decriminalizing and regulating medical cannabis. The district court rejected Kuehn’s challenge in that case. We affirmed the district court’s order. 1 On December 10, 2024, Kuehn filed a complaint in the district court challenging the validity of the two initiative measures. The complaint named as defendants Governor Jim Pillen (the Governor) and Secretary of State Robert B. Evnen (the Secretary) in their official capacities. The complaint also named as defendants the three sponsors of the initiative petitions, Anna Wishart, Crista Eggers, and Adam Morfeld (collectively the Sponsors). With the complaint, Kuehn filed a motion for a temporary restraining order and temporary injunction to prevent the Governor from declaring the two initiative measures to be enacted into law. The district court denied the motion, and the Governor thereafter signed a proclamation certifying the enactment of the two initiative measures into law.

The two initiative measures were codified as the Nebraska Medical Cannabis Patient Protection Act, Neb. Rev. Stat. §§ 71-24,103 to 71-24,105 (Supp. 2025), which removes penalties for possession and use of medical cannabis, and the Nebraska Medical Cannabis Regulation Act, Neb. Rev. Stat. §§ 71-24,106 to 71-24,111 (Supp. 2025) (the Regulation Act), 1 Kuehn v. Evnen, ante p. 161, ___ N.W.3d ___ (2026).

Nebraska Supreme Court Advance Sheets 322 Nebraska Reports

KUEHN v. PILLEN Cite as 322 Neb. 297

which removes penalties for the manufacture and distribution of medical cannabis and creates a commission to regulate cannabis establishments (collectively the Acts).

Operative Complaint

Kuehn filed an amended complaint in January 2025, and he filed a second amended complaint on June 16. The second amended complaint is the operative complaint for purposes of this appeal. In his second amended complaint, Kuehn named as defendants in their official capacities the Governor, the Secretary, the chief executive officer of the Department of Health and Human Services (DHHS), the State Treasurer, and the Tax Commissioner (collectively the State Officials). Also named in their official capacities as members of the Nebraska Medical Cannabis Commission (NMCC) were Bruce D. Bailey, Monica Oldenburg, Lorelle Mueting, and Kim M. Lowe (collectively the NMCC Commissioners). Kuehn again named the Sponsors as defendants.

In the second amended complaint, Kuehn alleged that he was “an individual resident of Nebraska, a registered Nebraska voter, and property owner in Nebraska, who pays income, property, and sales taxes in the State of Nebraska.” He also described himself as a “citizen opponent” of the initiative measures and the petitions that sought to place the initiatives on the ballot.

Kuehn generally alleged that the Acts were unconstitutional under both Nebraska law and federal law. He alleged that federal law prohibited the use, production, and distribution of marijuana and that state measures legalizing and regulating medical marijuana are preempted by federal law and therefore in violation of the Supremacy Clause of the U.S. Constitution, U.S. Const. art. VI. Kuehn also cited Neb. Const. art. III, § 2, which provides, in part, that “[t]he constitutional limitations as to the scope and subject matter of statutes enacted by the Legislature shall apply to those enacted by initiative,” and he contended that the Acts were

Nebraska Supreme Court Advance Sheets 322 Nebraska Reports

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