Supreme Court Split Over Trucker Fired For Unintentional CBD Use, Suing Under RICO Act

Benzinga · 10/15 21:53

The U.S. Supreme Court is grappling with a complex case involving a former truck driver, Douglas Horn, who claims he was wrongfully fired after a failed drug test, which he attributes to a “CBD-rich medicine.”

Horn is suing under the Racketeer Influenced and Corrupt Organizations (RICO) Act, a law designed to combat organized crime, seeking triple damages for what he describes as a business or property injury.

Divided Court: ‘Medical Marijuana Did Not Fire You’

The court was divided during Tuesday's arguments. Some of the conservative justices seemed wary of allowing Horn's case to move forward, noted CNN, fearing it could lead to a surge in RICO lawsuits over routine personal injuries.

Justice Brett Kavanaugh called Horn's legal theory a "radical shift" in how tort claims are handled in the U.S., Chief Justice John Roberts also raised concerns about the broader implications of the case and Justice Clarence Thomas said, "Medical Marijuana did not fire you."

Conversely, the Court's liberal justices, led by Justice Elena Kagan, argued Horn had indeed suffered a business injury. Kagan pointed out that losing one's job could be considered a harm to one's business under the RICO law. "If you've been injured in your business, which includes your employment, then you're entitled to threefold damages," Kagan stated, according to the New York Times.

Justice Ketanji Brown Jackson agreed. "He's not claiming that he got ill because of the product. He's not saying he was personally injured. He didn't even know that he had ingested THC until the testing and the firing."

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What's It All About?

Horn's legal journey began in 2012 after he tried a CBD product called "Dixie X," which he believed did not contain THC, the psychoactive component in cannabis. After failing a drug test, Horn was fired. He then sued the companies behind the CBD product, including Medical Marijuana Inc. (OTC:MJNA), Dixie Holdings and Red Dice Holdings, alleging that they had engaged in a pattern of racketeering carried on through an enterprise that included mail and wire fraud.

A federal district court initially ruled against Horn, but the 2nd U.S. Circuit Court of Appeals allowed his suit to proceed.

Medical Marijuana and the other companies argue Horn's injury is personal, not a business or property harm as required under RICO. They said a ruling in Horn's favor would dramatically expand the scope of civil RICO lawsuits, turning what they described as a “garden-variety products-liability” case into something much larger.

A decision is expected next year.

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Photo: Courtesy of SCOTUS Tours and Information