Advertisement

Lawyers for 11 disqualified Ontario pot shop applicants say process was unfair

FILE - This Nov. 27, 2015 file photo shows two marijuana buds displayed for a customer in Denver. (AP Photo/David Zalubowski, File).
FILE - This Nov. 27, 2015 file photo shows two marijuana buds displayed for a customer in Denver. (AP Photo/David Zalubowski, File). David Zalubowski / The Canadian Press

TORONTO – Lawyers for 11 people who applied to open a cannabis store in Ontario only to be disqualified shortly afterwards say their clients were denied a fair process.

At a hearing in Toronto today, lawyers for the group say the provincial agency tasked with administering the licensing process interpreted one of the rules in an “unfair and unreasonable manner.”

As a result, the lawyers argue, the Alcohol and Gaming Commission of Ontario was not entitled to disqualify the 11 applicants or to select a new slate of applicants to replace them.

The group is now requesting a judicial review of the rejection, as well as the procedures involved in the lottery that has been used to grant all of Ontario’s pot shop licences.

Story continues below advertisement

The commission said in August that the group had missed a deadline in the application process, but the 11 say that’s not the case.

The group’s lawyers argue an email alerting their clients that they had won the lottery did not go through, and the deadline is set based on when applicants are notified.

Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day.

Get daily National news

Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day.
By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy.

WATCH: Toronto’s newest pot shop opens in Yorkville (April 7, 2019)

Click to play video: 'Toronto’s newest pot shop opens in Yorkville'
Toronto’s newest pot shop opens in Yorkville

The commission “just determined that the attempt to notify was sufficient” to trigger the countdown, attorney Michael Lacy said.

Earlier this month, a Toronto judge paused the licensing process for the latest round of cannabis stores until the case is resolved.

Lawyers representing the commission contested the stay, saying it would interfere with the integrity of the lottery system.

Story continues below advertisement

There was also opposition from lawyers representing the applicants selected to replace those eliminated.

So far, there have been two rounds of the government lottery to determine who can apply to open cannabis stores. The first involved 25 spots and the second, 42.

Lottery winners have five business days to turn in their application, along with a $6,000 non-refundable fee and a $50,000 letter of credit.

The legal challenge may affect the government’s timeline to increase the number of legal pot shops in the province.

WATCH: 3 cannabis store licences awarded to Innisfil in government selection (Aug. 21, 2019)

Click to play video: '3 cannabis store licences awarded to Innisfil in government selection'
3 cannabis store licences awarded to Innisfil in government selection

Sponsored content

AdChoices