Dist. Ct. did not err in denying plaintiffs' motion for issuance of preliminary injunction in plaintiffs' claim, alleging dormant Commerce Clause challenge to residency provisions of licensure of cannabis dispensaries under Illinois Cannabis Regulation and Tax Act, where plaintiffs-unsuccessful out-of-state applicants for said licenses alleged that rules for 2021 issuance of said licenses heavily favored applicants who were residents of Illinois. Denial of preliminary injunction, which sought stoppage of completion of licensing process for 2021 and 2022 licenses, was appropriate, even though plaintiffs had established likelihood of success on their dormant Commerce Clause claim, where, to extent some form of unwinding relief was possible: (1) plaintiffs waited too late to bring instant cause of action, i.e. from 2019 enactment of said rules to March 2022 when it brought instant lawsuit, where 2021 licenses had been awarded on conditional basis in September of 2021; and (2) plaintiffs’ challenge to issuance of 2022 licenses was unripe, since state agency had not issued final rules for issuance of said licenses. Ct. further noted that residency preferences for issuance of 2022 licenses had since been withdrawn. Also, portion of plaintiffs’ appeal was now moot, where denial of preliminary injunction cleared way for issuance of 2021 licenses.
Federal 7th Circuit Court
Civil Court
Injunction