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Is Ontario’s Legal Cannabis Monopoly Constitutional?

October 17, 2017
The Supreme Court of Canada is about to consider the impact of the country’s legalization plan on the country’s interprovincial trade. Canada’s top court has accepted an application from cannabis-related companies to intervene in an upcoming case that some are saying could have wide implications for interprovincial trade in the country.

In 2016, Gerard Comeau of Tacadie, New Brunswick was fined almost $300 for bringing more than 14 cases of beer into the province. (New Brunswick is home to laws that restrict the amount of alcohol that can be brought across its border.) The charge was later overturned at the New Brunswick Court of Appeal, and a subsequent appeal by the Crown means the country’s top court will wade into the boozy feud.

“It is Cannabis Culture’s position that the LCBO’s control over all recreational cannabis distribution and sale is overly restrictive and amounts…to a form of interprovincial trade barrier.”
lawyer Kirk Tousaw

Now, Cannabis Culture, the marijuana lifestyle brand that once franchised its name to dispensary locations across Canada, has hired prominent cannabis lawyer Kirk Tousaw to apply as an intervenor in the Comeau case. Their application is also being submitted on behalf of 28 other corporations and non-profits, which collectively operate 100 dispensaries across the country.

In their application, Tousaw says that Cannabis Culture believes the upcoming ruling is “of pressing and substantial importance” because provinces “could create barriers to the free trade of cannabis products from Province to Province … and could constitute an infringement of s. 121 of the Constitution Act of 1867.”


‘Reasonable Access’: This Court Case Could Decide the Future of Ontario Dispensaries

Tousaw is hoping to use the case to dismantle the Ontario government’s planned cannabis monopoly – or at least get the conversation going on it. “It is Cannabis Culture’s position that the [Liquor Control Board of Ontario]’s control over all recreational cannabis distribution and sale is overly restrictive and amounts … to a form of interprovincial trade barrier.” He submits that any province seeking to “exert exclusive control over the distribution and sale of cannabis and cannabis derivative products through a Provincial entity” is in effect creating such an unconstitutional trade barrier. The application asks the Supreme Court to confirm the decision of the New Brunswick Court of Appeal, which rejected the charge against Comeau.

(AP Photo/Jae C. Hong)

Tousaw is a bold cannabis litigator famous for defending the Smith case, which brought arguments over edibles and concentrates to the Supreme Court .

In that case, a man named Owen Smith was arrested for producing cookies and edibles for patients of a dispensary. In his defense, Tousaw strove for the moon, asking the Court to rule entire sections of the country’s drug rules be ruled unconstitutional and to find that cannabis should instead be regulated by the country’s Natural Health Products regime.


Alberta’s Cannabis Guidelines: 18 to Buy, Liquor Commission in Control

Ultimately, Tousaw didn’t get everything he wanted, but the Supreme Court did rule in his client’s favour, finding that some provisions of Canada’s drug laws were unconstitutional to the extent that they prohibit individuals from procuring and consuming concentrated forms of cannabis as they need it.

Tousaw’s bringing similar determination to the Comeau case. It’s unclear if the Supreme Court will accept Cannabis Culture’s intervenor application, and even if they do, the Court may not seriously consider their arguments. It’s unlikely that the Supreme Court will even mention the word cannabis in their ruling, similar to the lower court decisions in this case.


As Legalization Looms, Toronto Wrangles Where to Allow Smoking

There are many parallels between this case and Canada’s proposed legalization plan, and it is likely that claims regarding interprovincial trade of cannabis will continue to be heard by the country’s courts. The 30-gram public possession limit contained in the Cannabis Act could be a significant barrier to interprovincial trade, since you can only cross provincial borders, well, in public.

Tousaw and Cannabis Culture don’t mention the 30-gram limit in their application, but ostensibly if the court confirms the Court of Appeal’s dismissal of the case, a challenge to the public-possession limit could be forthcoming. Stay tuned.

Harrison Jordan's Bio Image

Harrison Jordan

Harrison Jordan is a graduate of Osgoode Hall Law School in Toronto and enjoys reading and writing about the regulatory affairs of cannabis in Canada and around the world.

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  • emernel

    What the Government of Ontario doesn’t understand is nobody pays 10 $ a gram for pot, they generally buy an ounce or part of an ounce for a lot less than 280 $, (the average is 160 $ an ounce, and you get to check out what you’re buying.

    The PCBO won’t give you a chance to check out or give discounts.

    I have visited a number of Dispensaries in Ottawa and have found that they have discounts and strain labels and some of them are becoming social gathering places. People there talk to each other and no one I met likes the government plan.

    They have consistently stated that they will go back to the black market if these dispensaries are closed.

    As for medical licenses good luck in finding a Doctor who will help a person who lives in almost constant pain. Most Family doctors take a complete moralistic view of Marijuana as a drug, out of ignorance.

    They don’t understand the historical perspective. Marijuana was classified as illegal years ago primarily because it was mainly Black people who used the product. Let’s face America is and always has been a racist society and these laws were created in order to incarcerate Black Americans.

    If you look at the situation economically the profit will only go to the ProvincialnGovernment. The Municipalities will not benefit at all. Dispensaries would be required to purchase a municipal vendors license, so income for the municipalities and sales taxes for the province.

    My point is Ontario’s plan will do nothing to stop the black market.

    I could say more about who is lobbying the government to ensure that organized crime doesn’t lose out. But I won’t.

    I hope our government wakes up because what have discovered in my dispensary visits is very nice people who understand the health benefits and know what strains help for different conditions. As well I met a bunch of nice people who were customers at these dispenceries.

    A regulated dispencery system should be required to have trained people who understand the health benefits of marijuana.

    Nelson Emery