Summary of Facts:
Advanced Medical Alternatives LLC (AMA), a medical marijuana center or dispensary, reportedly entered into an agreement July 28, 20011, for the purchase and sale of assets in order to satisfy a multiple party transaction to resolve a lawsuit in Denver County District Court between itself and Cultivators R US. According to AMA, the agreement stated Preferred Organic Therapy & Wellness LLC (POTW) and Andy Klein were to sell AMA 30 pounds of medical marijuana, in four pound be month units and at $1,000 per pound, beginning in August 2011. POTW and Klien allegedly delivered three pounds of marijuana to AMA but, despite demands, refused to provide the remaining amount due.
AMA filed a lawsuit against POTW and Klein in Denver County District Court Aug. 29, 2012. In the plaintiff's verified complaint, it sought a declaratory judgment regarding the defendants' responsibility to provide the medical marijuana due under the agreement. Additionally, it claimed the defendants breached the contract and the implied covenant of good faith and fair dealing by failing to provide the harvested medical marijuana due.
The plaintiff sought to recover damages, prejudgment interest, postjudgment interest, costs and attorney fees.
The matter proceeded to a bench trial before Judge J. Eric Elliff. In his judgment signed and dated March 19, 2013, Judge Elliff entered judgment in favor of the plaintiff against defendant POTW and awarded the plaintiff $27,000 for damages. Further, Judge Elliff stated no judgment would be entered against Klein.
Court: District Court of Colorado, Second Judicial District, Denver County.