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Cannabis Dispensary Owners Allege Fraudulent Conspiracy Against Landlord

SOUTHERN CALIFORNIA RECORD

Friday, April 18, 2025

Cannabis Dispensary Owners Allege Fraudulent Conspiracy Against Landlord

State Court
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In a contentious legal battle involving cannabis dispensaries, a California appellate court has affirmed the dismissal of a lawsuit accusing several parties of conspiracy and fraud. The complaint was filed by Jason A. Detamore and Lisa M. Detamore in the Superior Court of Los Angeles County on July 3, 2024, against Suresh C. Jain and associated entities.

The dispute traces back to prior litigation involving multiple parties operating cannabis dispensaries, culminating in a settlement agreement where most agreed to operate separate dispensaries. Jason and Lisa Detamore, owners of Advanced Pain Solutions, Inc., believed they would continue operating their dispensary at 12320 W. Pico Boulevard in Los Angeles after their partner Devon Wheeler ceded his interest in the business to them as part of the settlement. However, complications arose when Suresh C. Jain evicted Wheeler—whose name was still on the lease—effectively ousting the Detamores from the premises. Jain then re-leased the property to Wheeler, who opened a competing dispensary.

The Detamores sued Jain for conspiracy to fraudulently induce the settlement agreement, alleging that Jain and Wheeler colluded to remove them from 12320 Pico. They argued that this constituted a strategic lawsuit against public participation (SLAPP). However, Jain moved to strike this cause of action under anti-SLAPP statutes, asserting that their defenses made it unlikely for the Detamores to prevail.

The court sided with Jain, noting that nothing in the settlement agreement conveyed any leasehold rights to the Detamores since Jain was not a party to it. The court concluded that without evidence suggesting collusion between Jain and other settling parties to induce the Detamores into signing the agreement, there was no reasonable likelihood for them to succeed on their claims.

The plaintiffs sought relief including damages for interference with prospective economic relations and conspiracy to commit fraud related to inducing them into signing the 2016 settlement agreement. Despite extensive legal maneuvers including motions for reconsideration and new trials based on alleged new evidence and improper notice claims, all were denied by Judge Mark A. Young.

Representing themselves alongside attorneys David R. Fisher and Tom N. Yacko from Fisher, Klein & Wolfe, Jason A. Detamore and Lisa M. Detamore faced off against Peter R. Afrasiabi from One LLP and Kathryn M. Davis from her law office representing Suresh C. Jain et al.

The case was presided over by Judges Chaney, Rothschild, and Weingart under Case ID B319504.

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