Emerald City Collective v. Washington State Liquor and Cannabis Board, et al.

Summary

The United States District Court for the Western District of Washington grants Defendants’ motion to dismiss Emerald City Collective’s claims arising from the denial of its cannabis retail license application. The court holds that the federal civil-rights claims and state-law claims are barred by the applicable statutes of limitations and that the discovery rule does not apply because Plaintiff was not sufficiently diligent. The court dismisses the action with prejudice and denies leave to amend.

Holdings

1. ECC's claims under 42 U.S.C. §§ 1981 and 1983 were time-barred because the claims accrued when ECC knew or had reason to know of the injury underlying the action, no later than the denial of its license application, and ECC filed suit more than six years later.
2. ECC's negligence and tortious-interference claims were time-barred under Washington's three-year limitations period because the injury occurred no later than May 4, 2017, and the limitations period expired on July 3, 2020.
3. Leave to amend was properly denied because amendment would be futile where the claims were barred by the applicable statutes of limitations.

Questions Presented

1. Whether ECC's federal claims under 42 U.S.C. §§ 1981 and 1983 were barred by the applicable statutes of limitations.
2. Whether ECC's Washington negligence and tortious-interference claims were barred by Washington's statute of limitations.
3. Whether the discovery rule postponed accrual of ECC's federal and state claims despite ECC's failure to investigate the denial of its license application for several years.
4. Whether ECC should be granted leave to amend its complaint.

Disposition

dismissed