U4ik Gardens LLP, V State Liquor Control Board

Court of Appeals of Washington·Decided July 20, 2021·No. 54492-0·Unpublished

Opinion

Filed Washington State Court of Appeals Division Two

July 20, 2021 IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

DIVISION II U4IK GARDENS, LLP, a Washington limited No. 54492-0-II liability partnership,

Appellant,

v.

STATE OF WASHINGTON; WASHINGTON UNPUBLISHED OPINION STATE LIQUOR AND CANNABIS BOARD; KENDRA OGREN; and JOHN DOE NOS. 1- 6,

Respondents.

Glasgow, J.—The Washington Liquor and Cannabis Board seized and immediately

destroyed 411 marijuana plants cultivated by U4IK Gardens LLP because the plants were larger

than 8 inches in height or width but were not tagged with unique identification labels. U4IK argued

it is entitled to damages under the Washington Constitution’s due process clause, the trespass

statute, and common law conversion. The superior court granted summary judgment to the Board

and denied summary judgment to U4IK, dismissing all claims.

U4IK appeals, arguing that the Board was not authorized to immediately seize and destroy

its plants without some process or hearing and, as a result, the Board must pay damages. We affirm

the superior court’s grant of summary judgment dismissing U4IK’s claims because U4IK failed to

raise any viable cause of action in its complaint. No. 54492-0-II

FACTS

U4IK was a licensed marijuana producer growing marijuana for sale. Acting on a tip,

enforcement officers with the Board conducted an unannounced visit to U4IK’s grow facility. The

officers discovered 411 marijuana plants over 8 inches in height or width that lacked the unique

identification labels required under the Board’s traceability regulations. In an uncontested report,

an enforcement officer explained that some of the plants were as much as 4 to 5 feet tall, and some

were full grown plants with buds. The report also explained that marijuana plants can take 3

months or more to mature to the point where they grow buds. Thus, it is possible many of the

plants had been improperly lacking unique identification labels for some time.

The officers determined the lack of labeling posed a threat to health and safety, and they

seized and killed the 411 plants by cutting them at the base of each plant and removing them from

U4IK’s facility. The plants were eventually destroyed. The officers did not destroy plants that were

less than 8 inches in height or width or plants whose unique identification labels were improperly

attached to their containers rather than the plant itself.

U4IK filed a complaint against the Board and the officers involved seeking damages for

its destroyed plants under 42 U.S.C. § 1983, statutory trespass, conversion, and the takings clause

of the Washington Constitution. The only remedy that U4IK sought was monetary damages; it did

not seek injunctive or declaratory relief, nor did it ask the trial court to declare any statute or

regulation invalid. U4IK later amended its complaint, eliminating its § 1983 claim and replacing

that claim with an allegation that the Board violated U4IK’s state constitutional rights to equal

protection and procedural and substantive due process. The amended complaint retained the

remaining claims and still sought only damages, not injunctive or declaratory relief.

2 No. 54492-0-II

The parties filed cross motions for summary judgment. The superior court granted the

Board’s motion for summary judgment and dismissed all of U4IK’s claims. U4IK appeals.

ANALYSIS

We review the superior court’s order granting summary judgment de novo. Vargas v.

Inland Wash., LLC, 194 Wn.2d 720, 728, 452 P.3d 1205 (2019). Summary judgment is appropriate

when the pleadings, affidavits, depositions, and admissions on file demonstrate the absence of any

genuine issue of material fact and the moving party is entitled to judgment as a matter of law. CR

56(c). When determining whether a genuine issue of material fact exists, we consider all the

evidence and reasonable inferences in the light most favorable to the nonmoving party. Vargas,

194 Wn.2d at 728. Summary judgment is proper if, after reviewing all the evidence, a reasonable

person could reach only one conclusion. Id.

A. Board’s Authority to Seize and Destroy Plants

Several of U4IK’s claims depend on U4IK’s underlying argument that the enforcement

officers lacked authority to immediately seize and destroy the marijuana plants under chapter 69.50

RCW and chapter 314-55 WAC. Specifically, U4IK contends that the Board had to first conduct

a proceeding under WAC 314-55-220(3) before killing or destroying the plants. U4IK also argues

that the Board should have imposed an administrative hold, allowing the plants to survive and be

cultivated while the appropriate penalty was determined. Alternatively, U4IK argues that the

Board should have engaged in forfeiture proceedings before destroying the plants. Finally, U4IK

asserts that the appropriate remedy was a monetary fine, not destruction of the untagged plants.1

1 As the trial court astutely recognized below, U4IK did not argue that the statute or Board regulations are unconstitutional on their face or as applied. Nor does U4IK argue on appeal that any applicable statute or regulation is invalid.

3 No. 54492-0-II

The Board responds that its immediate seizure and destruction of the plants was authorized

by RCW 69.50.505 and WAC 314-55-210 because the untagged plants were cultivated in violation

of chapter 69.50 RCW. The Board also contends that U4IK did not have a valid property interest

in the plants under chapter 69.50 RCW and that the plants could be immediately destroyed, in part

because untagged plants present a risk to public health and safety.

We conclude that the Board had authority under RCW 69.50.505 and WAC 314-55-210 to

immediately seize and destroy U4IK’s untagged marijuana plants.

1. Relevant statutes and regulations

a. Marijuana plant tagging requirement

RCW 69.50.345 mandates that the Board promulgate regulations to oversee the production

of marijuana.

Producers of marijuana must comply with the statutory and regulatory provisions of

chapter 69.50 RCW and chapter 314-55 WAC. RCW 69.50.401 makes it illegal to possess

controlled substances with the intent to manufacture or deliver except as authorized by chapter

69.50 RCW. RCW 69.50.401(3) states that “[t]he production . . . of marijuana in compliance with

the terms set forth in RCW . . . 69.50.366 shall not constitute a violation of this section, this chapter,

or any other provision of Washington state law.”

RCW 69.50.366 clarifies that marijuana production by a licensed marijuana producer does

not constitute a criminal or civil offense if done in compliance with the rules adopted by the Board.

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