Cannabis Grower Sues New Mexico Over Crop Destruction in Compliance Dispute
A New Mexico cannabis grower, NNK Equity LLC, plans to file a lawsuit against state authorities after the destruction of tens of thousands of its marijuana plants amid a regulatory dispute. The company’s attorney, Jacob Candelaria, alleges that NNK Equity’s rights were infringed upon, arguing that the state’s actions disregarded due process and resulted in a significant financial loss.
This recent large-scale seizure marks the most extensive enforcement action since New Mexico legalized cannabis possession and cultivation in 2021, signaling a stricter regulatory approach. According to state officials, dozens of agents participated in the October operation, targeting NNK Equity’s facility and destroying its crops.
Background of Compliance Issues
The Cannabis Control Division had previously taken action against NNK Equity, filing noncompliance and default orders earlier this year. The Division cited several regulatory infractions, including the absence of visible licenses on-site, lack of valid water rights for cultivation, failure to install required security cameras, and non-compliance with sanitation standards.
New Mexico State Police Chief Troy Weisler emphasized the state’s position on the matter, stating, “The organization involved showed a blatant disregard for the laws of this state, and we will prove that once this investigation is over.” The state is resolute in maintaining compliance within the cannabis industry, which has seen significant growth and regulatory challenges since legalization.
Allegations of Due Process Violations
Attorney Candelaria, representing NNK Equity, disputes these compliance claims and contends that the state’s actions violated his client’s civil rights. He claims that the Cannabis Control Division did not provide adequate notice of its intent to revoke NNK Equity’s license and failed to offer the company an opportunity for a hearing. Furthermore, Candelaria noted that his clients, Irving Lin and Bao Xue, who primarily speak Mandarin Chinese, requested a translation that was allegedly never provided.
Regulators, however, assert that they met all necessary requirements for notice and hearings, maintaining that due process was followed throughout the enforcement process.
Legal Challenge to License Revocation
NNK Equity is seeking judicial intervention to overturn the license revocation and mandate a formal hearing. In addition to challenging the revocation, Candelaria announced plans to sue the state for the destruction of property that he estimates is worth hundreds of thousands of dollars. He argues that law enforcement acted improperly by destroying the plants without a proper hearing, which, he claims, violates constitutional due process rights.
“The idea that law enforcement officers can destroy public property based upon a temporary restraining order—which can be entered without notice to all parties and before a hearing on the evidence—should concern all of us who believe in the Constitution,” Candelaria stated, underscoring the potential impact on civil rights protections within cannabis enforcement.
License and Compliance Issues
NNK Equity, licensed in December 2023 to operate in Waterflow, a rural area near the Navajo Nation, has faced ongoing scrutiny since its establishment. In June, state regulators discovered that the company had exceeded its permitted plant count. Additionally, authorities later found a second, unlicensed location associated with the company.
Other compliance lapses have also been identified, including transportation and tracking violations, such as failing to assign unique identification numbers to each plant. These alleged infractions have contributed to the state’s intensified regulatory oversight in the region.
Increased Enforcement in New Mexico’s Cannabis Industry
The Waterflow area has seen heightened enforcement activities in recent months, with authorities targeting two additional cannabis operations. The Navajo Nation has also taken action, filing charges against two tribal members involved in cannabis-related activities. The conflict over NNK Equity’s destroyed crops is part of a broader trend of regulatory crackdowns and tension within New Mexico’s fast-growing cannabis industry.
As the state works to balance cannabis legalization with regulatory compliance, the outcome of NNK Equity’s legal challenge may have far-reaching implications for other industry players. The case could set precedents for how due process and enforcement are handled, potentially shaping the future regulatory landscape in New Mexico’s cannabis sector.