Trulieve Cannabis Corp., Trulieve Holdings, Inc., and Trulieve AL, Inc. v. Alabama Medical Cannabis Commission

Court of Civil Appeals of Alabama·Decided July 10, 2026·No. CL-2026-0201·Published

Opinion

Rel: July 10, 2026

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 SPECIAL TERM, 2026

CL-2026-0201

Trulieve Cannabis Corp., Trulieve Holdings, Inc., and Trulieve AL, Inc.

v.

Alabama Medical Cannabis Commission et al.

Appeal from Montgomery Circuit Court (CV-26-900441)

PER CURIAM.

This appeal arises from a judgment of the Montgomery Circuit Court ("the circuit court") that dismissed a complaint seeking judicial review of an administrative order. At issue in the complaint was whether a certain administrative order could lead to the exposure of trade secrets

and other proprietary information at a later administrative hearing. The circuit court determined that it lacked subject-matter jurisdiction to review the administrative order and dismissed the complaint. We disagree, reverse the judgment, and remand this case to the circuit court for further consideration.

This case is the latest in a series of lawsuits (and appellate proceedings) related to the Darren Wesley "Alto" Hall Compassion Act ("the Act"), Ala. Code 1975, § 20-2A-1 et seq., which legalized "medical" marijuana for personal use in the State of Alabama. The Act created the Alabama Medical Cannabis Commission ("the commission") to oversee the implementation of the Act and, specifically, as the Act relates to this case, to issue licenses related to the growing and distribution of medical cannabis. See §§ 20-2A-20 and 20-2A-22, Ala. Code, 1975. The licenses at issue in this case are "integrated facility medical cannabis licenses" ("integrated-facility licenses"). Integrated-facility licenses authorize a company to cultivate, process, and distribute medical cannabis. The Act authorizes the commission to issue five integrated-facility licenses. See § 20-2A-67, Ala. Code 1975. Trulieve Cannabis Corp., Trulieve Holdings,

Inc., and Trulieve AL, Inc. (collectively referred to as "Trulieve") have applied for one of those licenses.

To assist it in selecting recipients for integrated-facility licenses, the commission initiated a competitive, investigative-hearing process. The investigative-hearing process will allow the various applicants to participate in an adversarial hearing conducted by an administrative-law judge ("ALJ") under the procedures contained in the Alabama Administrative Procedure Act ("the AAPA"), § 41-22-1 et seq., Ala. Code 1975. The ALJ would then make a recommendation to the commission for a final decision on which applicants would receive an integrated- facility license.

To prepare for the impending presentation of likely complex evidence, the ALJ issued various scheduling orders and other prehearing directives to applicants for the integrated-facility licenses. The commission and its members describe the process as follows:

"During months of structured case management, the ALJ entered numerous orders, including a protective order dated November 20, 2025, drafted by Trulieve and negotiated among the parties. [The] ALJ also issued scheduling orders dated December 4, 2025, January 15, 2026, and January 29, 2026. These orders established deadlines and procedures for the production of documents, identification of confidentiality

claims, and preparation for anticipated contested case hearings that were to begin March 23, 2026.

"Specifically relevant to these proceedings, the November 20 Protective Order permitted the parties to designate portions of their documents and information as 'Confidential -- Subject to a Protective Order' ('Confidential')

or 'Confidential -- Attorney Eyes Only -- Subject to a Protective Order' ('AEO'). The protective order cautions that the AEO 'designation must be made in good faith and not for the purpose of gaining a tactical advantage…. [and] shall be made only where disclosure to a business representative would create a clearly defined and serious risk of competitive harm.' A party could challenge another party's confidentiality designation 'at any point in these proceedings … by filing a motion with the [ALJ].' The protective order also allocated the burden of proof as to the designation of documents and information: 'The Designating Entity bears the burden of establishing that the information is entitled to [Confidential]

or [AEO] treatment.' "

Brief of the commission and its members, p. 7 (citations omitted).

Pursuant to the November 20, 2025, order ("the protective order"), Trulieve, along with other applicants, submitted a version of its original application for an integrated-facility license with portions of the information redacted and designated as "Confidential -- Attorney Eyes Only" ("AEO"). The intended effect of those redactions would be to prevent another applicant's outside counsel from sharing the

designated/protected information with his or her client, i.e., an employee of another applicant.1 Trulieve describes its designations as follows:

"Trulieve … complied with this process, making just 17 AEO designations in its 1400-page-long application. Trulieve … reserved AEO designations for information considered to be trade secret information in the medical-cannabis industry.

Its AEO designations included, among other things, its business plan, standard operating procedures, policies and procedures manual, manufacturing processes, and engineering layouts. Trulieve … also served all counsel with a privilege log, explaining the basis and nature of all confidentiality designations."

Trulieve's brief, p. 12.

Other applicants submitted redacted versions of their applications as well, while some applicants submitted applications with very limited redactions. It is largely uncontested that Trulieve submitted the most extensive redactions using the AEO designation.

Paragraph 13 of the protective order provides guidance on how disagreements over an applicant's redactions were to be resolved:

"13. Challenge to Confidential Designation. In the event that any party who has appeared disagrees at any point in these proceedings with any designation made under this

1The protective order allows for a slightly less stringent designation

referred to in the order as "Confidential." This designation would generally prevent disclosure to third parties not connected to the investigative hearing and prohibits the use of the designated information outside the proceedings.

Protective Order, the parties who have appeared shall first try to resolve such dispute in good faith on an informal basis.

If the dispute cannot be resolved, the party objecting to the designation may seek appropriate relief by filing a motion with the Administrative Law Judge. The Designating Entity bears the burden of establishing that the information is entitled to Confidential or Confidential-Attorney-Eyes-Only treatment."

On February 18, 2026, one of the other applicants for an integrated-

facility license, Alabama Always, LLC ("Alabama Always"), filed a motion with the ALJ objecting to Trulieve's AEO designations. The motion included an affidavit from an expert in the medical-marijuana industry that stated that "several applicants labeled a significant amount of information in their applications [as AEO] … that does not constitute a trade secret or other confidential or proprietary business information in the cannabis industry." Insa Alabama, LLC ("Insa"), filed a similar motion detailing the AEO designations by Trulieve that it believed were not justified.2 Trulieve filed a lengthy response justifying the use of the AEO designations in its application. The response included an affidavit from the "Chief Legal Officer and Corporate Secretary for Trulieve Cannabis

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Trulieve Cannabis Corp., Trulieve Holdings, Inc., and Trulieve AL, Inc. v. Alabama Medical Cannabis Commission, (Ala. Ct. App. 2026).

Trulieve Cannabis Corp., Trulieve Holdings, Inc., and Trulieve AL, Inc. v. Alabama Medical Cannabis Commission (Trulieve Cannabis Corp., Trulieve Holdings, Inc., and Trulieve AL, Inc. v. Alabama Medical Cannabis Commission) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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