A Michigan marijuana grower won a $31.8 million jury verdict for breach of contract… then watched it disappear on appeal. On September 10, 2026, the U.S. Court of Appeals for the 6th Circuit held that federal courts cannot enforce a contract to buy and sell marijuana because performing the deal required the parties to commit federal crimes (Hello Farms Licensing MI, LLC v. GR Vending MI, LLC, No. 25-1759 (6th Cir. Sept. 10, 2026)). So, if you’re a party to one of the tens of thousands of contracts in state-legal marijuana regimes, what does this mean for the validity of your contracts?
Writing for the panel, Judge John Nalbandian applied a long-settled rule: Federal courts will not lend their aid to enforce an agreement that requires the commission of a federal crime. Because marijuana is a controlled substance, and performing this contract required growing, possessing, and distributing it — each a felony under the Controlled Substances Act (CSA) — Hello Farms could not recover on the bargain.
