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Judge Denies Bankruptcy Protection to Denver Marijuana Business

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Bankruptcy Judge Howard Tallmanhas dismissed the case of a Denver marijuana business owner, saying that although his activities are legal under Colorado law, he is violating the federal Controlled Substances Act, the Denver Post reported yesterday. The case is at least the second such one involving a marijuana business tossed out of bankruptcy court in Colorado. At least two others have been dismissed in California. Judge Tallman made a similar decision in a 2012 case involving Rent-Rite Super Kegs West Ltd, a company that operated a warehouse partially rented to a tenant cultivating marijuana. "Violations of federal law create significant impediments to the debtors' ability to seek relief from their debts under federal bankruptcy laws in a federal bankruptcy court," Tallman wrote in his decision.