A legal dispute between a Bend-based marijuana company and its former partner has been dismissed permanently by the Deschutes County Circuit Court.
Oregrown Industries Inc. and Justin Crawn, the former head grower, have agreed to dismiss the lawsuit, including all claims and counterclaims, without costs, disbursements or attorney fees, according to court records filed March 27.
Aviv Hadar, Oregrown CEO and co-founder, said the parties have reached mutually agreeable terms.
“Our board members, shareholders, founders, and employees all want to take this opportunity to thank (Crawn) for the work he has done to help us throughout the years,” Hadar said in an email. “As an organization, we wish nothing but the best for (Crawn) and personally, there is still a tremendous amount of love between the two of us.”
Requests for additional information were not returned by Crawn or Hadar or their lawyers.
In the initial lawsuit filed in August against Crawn, Oregrown sought $2.7 million in damages, as well as an order stating that Crawn is no longer a shareholder and an order for Crawn to return control of social media accounts to Oregrown. In November, Crawn filed counterclaims, sought $9 million in damages and claimed that Oregrown deprived him of $600,000 in proportional ownership interest.
Even though Crawn, who is identified in the initial lawsuit as a medical and black-market grower, did not contribute any cash to the company’s formation, he was made a shareholder in Oregrown and Downtown Bend Flagship Inc., the entity that holds the state license for recreational retail sales.
Hadar said in the email that the dispute arose toward the end of the business relationship and resulted in lawsuits and are the result of misunderstandings.
“I have found a way to positively move forward and drop all lawsuits,” Crawn said in the same email. “I truly wish nothing but the best for Oregrown. I am forever grateful of him for that and am excited to move on to the next chapter in my life.”
Crawn said in his counterclaim that Oregrown’s founders had offered him $600,000 for his 18% ownership interest if he resigned quickly and that they would allow him to take any strains of cannabis as long as he was discreet.
Oregrown claimed in its initial suit that under Crawn’s care, the company’s growing facility in Tumalo was a complete loss and didn’t produce any shelf-worthy flower. The company also says that upon his termination Crawn took 51 seed packets and at least one clone of all but one strain, which were reported to law enforcement and the Oregon Liquor Control Commission.
Oregrown blamed Crawn for crop failures. In his counterclaim, Crawn said the problem was the Tumalo facility’s cooling system and the financial issues facing the company.
Communication broke down after Crawn posted his departure from Oregrown Industries and Downtown Bend Flagship Inc. on an Instagram account and others responded, according to the counterclaim.
The Oregon Liquor Control Commission, which oversees the recreational cannabis industry, issued a notice last year of proposed license cancellation, fined the marijuana grower, processor and dispensary operator $4,950 and issued a 46-day suspension for using hemp oil and making false statements to inspectors, according to the commission’s press release.
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