The Ohio Court of Appeals recently ruled in favor of New Gen RE Ohio, LLC, a company seeking to open an adult-use cannabis dispensary in Pierce Township. The court's decision affirms a lower court's ruling that denied a motion for judgment on the pleadings filed by Pierce Township. This ruling is significant as it allows New Gen to continue its legal challenge against the Township's regulations governing cannabis dispensaries.
The case, New Gen RE Ohio, L.L.C. v. Pierce Twp. Bd. of Trustees, Ohio, was filed under docket number CA2025-12-099. It highlights the ongoing legal battles surrounding the cannabis industry in Ohio, particularly as municipalities establish their own regulations for dispensaries. The outcome of this case could have implications for other businesses looking to enter the cannabis market in similar jurisdictions.
Background
New Gen RE Ohio, LLC, is a limited liability company that aims to operate an adult-use cannabis dispensary in Pierce Township, located in Clermont County, Ohio. The Township is represented by its Board of Trustees, which includes administrators Eddie McCarthy and Mary Berta Coggeshall, who are named defendants in the case.
The dispute arose when New Gen filed an amended complaint against Pierce Township on June 11, 2025. The complaint included eight counts, but only five were relevant to the appeal: Counts 1, 2, 3, 6, and 7. In these counts, New Gen challenged the constitutionality of the Township's regulations and the permitting process for cannabis dispensaries. The company sought declaratory judgment, injunctive relief, and monetary damages.
Pierce Township responded by filing a motion for judgment on the pleadings on July 14, 2025, arguing that the individual defendants were entitled to qualified immunity and that the Township was protected by statutory immunity. The trial court held a hearing on the motion on August 7, 2025, but did not issue a ruling until November 10, 2025, when it denied the motion.
The Ruling
The Ohio Court of Appeals, led by Judge Robin N. Piper, upheld the trial court's decision, affirming that Pierce Township was not entitled to judgment on the pleadings for the five counts in question. The court noted, "Pierce Township is unable to determine the constitutionality of the resolution, and requiring the plaintiff to attempt to do so would be futile." This statement underscores the court's view that the issues raised by New Gen needed further examination beyond the pleadings.
The court also addressed the arguments regarding qualified immunity for McCarthy and Coggeshall, stating that the trial court was correct in determining that the matter was more suited for a motion for summary judgment rather than a judgment on the pleadings. The court emphasized that the facts surrounding the defendants' actions could not be fully assessed at this stage of the proceedings.
Impact
The ruling has significant implications for New Gen and other potential cannabis businesses in Ohio. By allowing the case to proceed, the court enables New Gen to challenge the Township's regulations in a more comprehensive manner. This could pave the way for other businesses facing similar obstacles in municipalities with restrictive cannabis laws.
Furthermore, the decision may influence how local governments approach the regulation of cannabis dispensaries. It highlights the need for municipalities to ensure that their regulations comply with constitutional standards, as failure to do so could lead to legal challenges.
What's Next
Following this ruling, Pierce Township may consider appealing the decision to a higher court, although details were not available in the court filing regarding any plans for an appeal. Meanwhile, the case will continue in the Clermont County Court of Common Pleas, where New Gen will have the opportunity to present its arguments against the Township's regulations.