Cathedral City Denied Injunction Against Dispensary

KESQ
March 3, 2008

Cathedral City Denied Injunction Against Dispensary

A federal judge refused to issue a
preliminary injunction against a Cathedral City medical marijuana
dispensary, saying that while he understood the city's
"frustration," he did not have authority to order the business
to cease operations.

"This is complicated by a number of
factors," said Riverside-based U.S. District Judge Stephen G. Larson,
before issuing a decision regarding Cathedral City-based Essential Herbs
and Oils.

"It's complicated by the will of the people of
California and the will of the people of Cathedral City. The question is
whether the city has a right to bring this action to this court at this
time."

Larson said he could find no Congressional or U.S.
Supreme Court precedent to validate a "private right of action"
by Cathedral City, emphasizing that a federal preliminary injunction for
alleged violations of the 1970 Controlled Substances Act should have been
sought by the U.S. Justice Department.

"I understand the
city's frustration," the judge said. "But I cannot resolve
whether the court has the authority to do what you're asking it to
do."

Last week, Larson issued a temporary restraining
order against Essential Herbs and Oils and its owners, Virginia Hurn and
Teresa Sotelo, prohibiting them from possessing, selling or distributing
marijuana.

In his order, Larson wrote that "defendants
seek refuge in California law which legalizes the use of marijuana.
However, federal law prohibits distribution of all marijuana, and does not
provide an exception for marijuana used for medical purposes."

ACLU Foundation attorney Allen Hopper, representing Essential,
argued today that if Cathedral City wanted to shut down the business, it
should pass a moratorium on licensing medical marijuana dispensaries -- or
revoke Essential's business license.

Joan Stevens Smyth,
representing Cathedral City, said the revocation process was under way.
She told the judge that the city believed the application of federal law
would result in a speedier outcome, and the city was concerned about
passing a moratorium because "we figured we'd get sued and end up in
state court."

Larson dissolved the temporary restraining
order, giving Essential's owners the ability to stay open for business,
Smyth said.

"There's nothing stopping them right
now," she said.

According to the attorney, the matter will
go back to Cathedral City's council and mayor, who will ultimately decide
whether to try to appeal Larson's ruling to the U.S. 9th Circuit Court of
Appeals.

Smyth expected the city to solicit the help of the
U.S. Attorney's Office in any future actions against the dispensary.

Essential's Brea-based attorney, Anthony Curiale, said medical
marijuana is legal under California law and "not a criminal
act."

"This is an issue of state's rights, and the
city seems not to care that the people of California voted to allow
seriously ill individuals to obtain the medicine recommended to them by
their physicians," Curiale said last week.

Cathedral City
and Rancho Mirage are the only Coachella Valley cities without a
moratorium or ban against medical marijuana.

Cathedral City
Deputy City Attorney Steve Quintanilla, who is also the city attorney for
Rancho Mirage, has said a ban is unnecessary because even though
California voters approved Proposition 215, federal statutes take
precedence over any conflicting state or local laws.

Essential
Herbs and Oils opened about a month ago on East Palm Canyon Drive with a
business license to make and sell herbs, spices and extracts, according to
Quintanilla.