The Cannabis Place 420 Corp. Files Federal Lawsuit Against New Jersey Cannabis Regulatory Commission and UFCW Local 360

Service Disabled Veteran owned dispensary files federal lawsuit against NJCRC and UFCW Local 360 alleging mandatory labor agreements conflict with federal law.

JERSEY CITY, NJ, UNITED STATES, October 7, 2026 /EINPresswire.com/ -- The Cannabis Place 420 Corp. (TCP) announced the filing of a civil lawsuit in the United States District Court for the District of New Jersey against the New Jersey Cannabis Regulatory Commission (NJCRC) and United Food and Commercial Workers (UFCW) Local 360. The litigation is filed under Civil Action No. 26-cv-12967.

According to the Verified Complaint, TCP—a certified minority-owned and service-disabled veteran-owned business—alleges that New Jersey's mandatory Labor Peace Agreement (LPA) requirements conflict with the National Labor Relations Act (NLRA) and the Commerce Clause of the U.S. Constitution. The court filings allege that these state-mandated requirements interfere with employers' federal rights and the National Labor Relations Board (NLRB) election process.

The lawsuit states that TCP previously maintained an LPA with UFCW Local 360 to comply with state licensing requirements. In the complaint, TCP alleges that it terminated this agreement in June 2026 following disputes in which TCP claims the union attempted to leverage interest arbitration early in the bargaining process and sought to utilize the state's regulatory authority to influence private labor negotiations. The complaint further alleges that when TCP subsequently sought a replacement LPA from other state-approved unions, it faced refusals that TCP claims were coordinated and driven by UFCW Local 360's market influence.

According to the filed documents, the NJCRC has indicated it will issue a Notice of Violation (NOV) alongside TCP's upcoming license renewal due to the lack of an active LPA. In its filings, TCP references the August 2026 federal court decision in Curaleaf Holdings, Inc. v. NJCRC, asserting that the state's LPA mandates were found likely preempted under the Garmon and Machinists doctrines. The Verified Complaint alleges that the issuance of a formal NOV could trigger collateral consequences for TCP, including the filing of a "Marijuana Priority" Suspicious Activity Report by its financial institution, default on its commercial lease, and the termination of wholesale supply contracts.

The lawsuit and a supporting declaration filed by TCP CEO Osbert Orduna also bring claims regarding New Jersey's Service Disabled Veteran Owned Business (DVOB) certification practices. Orduna's declaration states he is an honorably discharged U.S. Marine Corps combat veteran certified as a Service Connected Disabled Veteran. The filings allege that denying direct DVOB status to non-resident combat veterans, such as Orduna, constitutes economic protectionism under the Commerce Clause.

As outlined in the Verified Complaint, the lawsuit brings the following counts:
Declaratory Judgment (Count I): Seeking a legal declaration that the LPA provisions of the CREAMM Act are preempted by the NLRA.

Civil Rights Violations under 42 U.S.C. § 1983 (Count II): Alleging state officials are unlawfully depriving TCP of protected property interests in its commercial licenses.

Emergency Injunctive Relief (Count III): Seeking a Temporary Restraining Order (TRO) and Preliminary Injunction to halt the NJCRC from issuing NOVs or taking adverse licensing actions.

Tortious Interference & Civil Conspiracy (Counts IV & V): Alleging intentional tortious interference and civil conspiracy by UFCW Local 360 regarding TCP's efforts to secure a replacement labor agreement.

TCP is petitioning the federal court for a permanent declaration striking down the CREAMM Act's LPA mandates, alongside compensatory and punitive damages against UFCW Local 360.

About The Cannabis Place 420 Corp.
The Cannabis Place 420 Corp. is an adult-use recreational cannabis dispensary headquartered in Jersey City, New Jersey. Majority-owned and operated by a Service-Disabled U.S. Marine Corps combat veteran, TCP is certified by the State of New Jersey as a minority business enterprise and operates as an Impact Zone Business. TCP developed an 80-hour "budtender" pre-apprenticeship program that funds stipends and creates opportunities for residents in economic Impact Zones. The company operates a free same-day cannabis delivery network across Hudson, Essex, Passaic, Union, and Bergen counties and employs twenty workers, the majority of whom reside in historically underrepresented Impact Zones.

About Constangy, Brooks, Smith & Prophete, LLP
Constangy, Brooks, Smith & Prophete, LLP is a national labor and employment law firm representing employers nationwide in labor relations, regulatory compliance, and complex federal litigation. Attorneys from Constangy’s offices in Parsippany, New Jersey and St. Louis, Missouri are representing TCP in this matter. TCP is represented by Keya C. Denner, Esq. The firm's New Jersey office is located at 6 Campus Drive, Suite 305, Parsippany, New Jersey 07054.
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Legal Citation:
The Cannabis Place 420 Corp. v. New Jersey Cannabis Regulatory Commission et al., Civil Action No. 26-cv-12967 (D.N.J. Oct. 2026)

Osbert Orduna
The Cannabis Place
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