Legal Battle Unfolds: Cannabis Company Files $834K Lawsuit Over Border Seizure

Lawsuit Filed as Cannabis Shipment Worth $834,901 Seized at US Border

In a legal saga unfolding at the US border, a significant cannabis shipment worth $834,901 was seized, sparking a lawsuit against a transport firm. Despite clear instructions to avoid entering the United States, about 151,300 grams of cannabis products and paraphernalia were confiscated, leaving two companies grappling with substantial losses.

The Legal Battle Begins

We Grow BC Ltd. and Alberta-based Westleaf Labs have initiated legal action against Kelowna-based Seven Elk Shipping, alleging breach of contract and negligence. According to the claim filed in April in the B.C. Supreme Court, Seven Elk Shipping was explicitly instructed not to transport the cannabis products across the US border.

Contractual Obligations Ignored

The plaintiffs engaged Seven Elk Shipping in January 2023 to transport cannabis products within Canada, with clear shipping agreements prohibiting any attempt to transport cannabis through the United States. Despite these agreements, on May 17, 2023, Seven Elks took possession of the cannabis shipment in a five-ton truck, intending to transport it to its destination in Creston and Calgary.

A Costly Seizure

However, the situation took a dire turn when the truck attempted to cross the US border at the Peace Arch crossing. The US Customs and Border Protection Trade Enforcement Branch seized the entire shipment, consisting of cannabis products and paraphernalia valued at $823,317. Despite efforts by the complainants to recover or replace the seized products, they were met with refusal from US Customs.

Legal Allegations and Claims

The plaintiffs allege significant damages, including harm to their reputation and financial losses incurred due to the seized shipment. They accuse Seven Elks of breaching the contract, negligence, and vicarious liability for the driver’s actions. Seeking damages and reimbursement of shipping fees, We Grow and Westleaf are determined to pursue legal recourse to recover their losses.

Awaiting Resolution

As the legal battle unfolds, Seven Elks has yet to respond to the allegations. It’s essential to note that none of the allegations have been proven in court, and the case remains ongoing. However, the lawsuit underscores the complexities and risks associated with transporting cannabis products across borders, highlighting the importance of clear contractual agreements and adherence to legal regulations.

Conclusion

The seizure of the cannabis shipment at the US border serves as a stark reminder of the legal hurdles faced by companies operating in the cannabis industry. As We Grow and Westleaf navigate the legal process to seek compensation and justice, the outcome of this lawsuit will have significant implications for cannabis transporters and companies alike, emphasizing the need for diligence and compliance with regulatory frameworks.