The STATE v. SASS GROUP, LLC (Two Cases)

315 Ga. 893
Supreme Court of Georgia·Decided March 15, 2023·No. S22A1243, S22A1244·Published·Cited by 30 cases

Opinion

315 Ga. 893 FINAL COPY

S22A1243, S22A1244. THE STATE et al. v. SASS GROUP, LLC et al.

BETHEL, Justice.

The doctrine of sovereign immunity, as enshrined in our

Constitution, bars suits against the State and its employees in their

official capacities unless a statute or the Constitution itself

specifically waives that immunity. See Ga. Const. of 1983, Art. I,

Sec. II, Par. IX (e). The doctrine’s history in Georgia is long and

sometimes winding.1 Here, we are called upon to examine the newest

chapter in this history.

1 See, e.g., Gilbert v. Richardson, 264 Ga. 744, 745 (1) (452 SE2d 476)

(1994) (noting that Georgia adopted “[t]he common law doctrine of sovereign immunity” in 1784); Intl. Bus. Machines Corp. v. Evans, 265 Ga. 215, 216 (1) (453 SE2d 706) (1995) (holding that sovereign immunity does not bar suits seeking injunctive relief to curtail alleged illegal or ultra vires acts of government entities), overruled by Ga. Dept. of Nat. Res. v. Center for a Sustainable Coast, Inc., 294 Ga. 593, 596-603 (2) (755 SE2d 184) (2014) (holding that sovereign immunity barred injunctive relief against the State and overruling Evans); Olvera v. Univ. System of Ga.’s Bd. of Regents, 298 Ga. 425, 426-428 (782 SE2d 436) (2016) (declaratory judgment action against state agency barred by sovereign immunity); Lathrop v. Deal, 301 Ga. 408, 440 (III) (C) (801 SE2d 867) (2017) (extending sovereign immunity to suits against the State for declaratory and injunctive relief). In November 2020, the people of Georgia, through the results

of a ballot question posed in the general election, amended our

Constitution to allow for a specific waiver of sovereign immunity.

See Ga. L. 2020, p. 917, § 1. See also Ga. L. 2021, p. 362A (setting

forth referendum results). This new waiver allows citizens to sue the

State (and, in provisions unrelated to this appeal, to sue local

governments) for declaratory relief. See Ga. Const. of 1983, Art. I,

Sec. II, Par. V (b) (“Paragraph V”). To the extent that citizens obtain

a favorable ruling on their claim for declaratory relief, they may

then also seek injunctive relief to “enforce [the court’s] judgment.”

See id. at Par. V (b) (1). To take advantage of this new waiver of the

doctrine of sovereign immunity, however, the Constitution provides

that such actions must be brought “exclusively” against the State.

See id. at Par. V (b) (2) When a plaintiff’s suit violates this

exclusivity provision, the Constitution requires the suit to be

dismissed. See id.

For reasons set forth more fully below, we hold that this

exclusivity provision of Paragraph V means what it says: it requires

2 dismissal of a lawsuit brought under that paragraph against the

State if it names defendants other than the State or local

governments specifically authorized by that provision. When other

defendants are named in such a lawsuit, the Constitution requires

that the entire suit be dismissed. Here, the plaintiffs’ suit named a

defendant for whom a waiver is not provided by Paragraph V.

Accordingly, the Constitution requires the suit to be dismissed. We

therefore vacate the trial court’s grant of an interlocutory injunction,

reverse the denial of the State’s motion to dismiss, and remand this

case with direction that it be dismissed.

1. Background

The plaintiffs in the underlying suit are purveyors of, among

other things, hemp-derived products. As such, they operate in

treacherous waters created by the tension among existing federal

criminal law and its selective enforcement, existing state law and

related enforcement decisions, and the public policy battles still

swirling around the use of marijuana, hemp, tetrahydrocannabinol

(“THC”), cannabidiol (“CBD”), and related compounds. Plaintiffs’

3 litigation interest is based upon a desire to affirm their right to sell

certain products. More specifically, SASS Group, LLC, and Great

Vape, LLC (collectively, “Plaintiffs”), seek declaratory judgment

affirming the legality of their actions and injunctive relief to protect

their future commercial activities.

As background, in 2018, the United States Congress enacted

the Agriculture Improvement Act of 2018, which, among other

things, legalized the possession and distribution of hemp and hemp

extracts. See Pub. L. No. 115-334, 132 Stat. 4490, and 7 USC § 1639o

(1). That same year, the federal Controlled Substances Act was also

amended to exclude the THC found in hemp from the list of

controlled substances. See 21 USC §§ 802 (16) (B) (i), 812 (Schedule

I (c) (17)). Several states similarly enacted legislation distinguishing

hemp as a non-controlled substance, including Georgia. In 2019, the

Georgia General Assembly passed the Georgia Hemp Farming Act,

which adopted the federal definition of hemp and hemp products and

permitted their cultivation and sale under certain circumstances.

See OCGA §§ 2-23-3 – 2-23-12. The hemp industry, it appears, has

4 since taken root in Georgia. Plaintiffs are businesses in Gwinnett

County, which, until recently, sold Delta-8-tetrahydrocannabinol

(“Delta-8-THC”), Delta-10-tetrahydrocannabinol (“Delta-10-THC”),

and other hemp-derived products that they allege fall within

Georgia’s definition of legal “hemp products.”

On January 25, 2022, the Gwinnett County District Attorney

issued a press release announcing that her office would pursue the

prosecution of “individuals and businesses who engage in the

possession, sale or distribution of . . . [S]chedule 1 controlled

substances.” The press release further described Delta-8-THC and

Delta-10-THC as controlled substances. Plaintiffs allege that the

District Attorney subsequently directed raids and arrests related to

the possession of Delta-8-THC and Delta-10-THC, which included

the seizure of millions of dollars in currency, inventory, and other

property from businesses similar to Plaintiffs’ businesses.

Plaintiffs filed a verified complaint against the State of Georgia

and the District Attorney in her individual capacity in the Superior

Court of Fulton County. Plaintiffs sought a judgment against the

5 State declaring that commercial products containing cannabinoids

derived from hemp, including, but not limited to, products

containing Delta-8-THC, Delta-10-THC, CBD, cannabinol (“CBN”),

and cannabigerol (“CBG”) are “hemp products” as defined by OCGA

§ 2-23-3 and thus may be lawfully possessed and sold throughout

Georgia. Plaintiffs also filed a motion seeking a temporary

restraining order and an interlocutory injunction against the

District Attorney in her individual capacity. The trial court granted

Plaintiffs’ request for a temporary restraining order, and, after a

hearing, an interlocutory injunction against the District Attorney in

her individual capacity, finding that Plaintiffs would otherwise

continue to suffer economic harm as a result of the District

Attorney’s course of conduct described in the January 25 press

release.

The Defendants filed a motion to dismiss, arguing primarily

that Plaintiffs’ claims were barred by sovereign immunity.2 The

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