U.S. Supreme Court to Hear Case Involving Trucker Fired Over CBD-Related THC Test

LOS ANGELES-The U.S. Supreme Court is set to hear arguments in a case involving Douglas Horn, a trucker who claims he was wrongfully fired after testing positive for THC, which he attributes to using a hemp-derived CBD product marketed as containing no THC. Horn filed a lawsuit against Medical Marijuana, Inc. in 2015, arguing that the company falsely advertised the product, leading him to use it for pain management after a serious accident.

The case, which hinges on the application of the Racketeer Influenced and Corrupt Organizations (RICO) Act, has significant implications for both cannabis and hemp industries. Horn claims the termination caused him economic harm, including the loss of wages and benefits tied to his employment. This, he argues, constitutes an injury to his business or property under the RICO statute, typically used to prosecute criminal organizations but applicable in certain civil cases.

The U.S. Court of Appeals for the Second Circuit sided with Horn, allowing the RICO case to move forward. However, Medical Marijuana, Inc. has challenged the ruling, contending that RICO should not apply to cases involving personal injuries. The company maintains that Horn’s claims of economic harm are merely a byproduct of his personal injury, which RICO does not cover.

This case has drawn attention from various industries and legal entities. The U.S. Chamber of Commerce and the U.S. Hemp Roundtable have expressed concerns that a broad interpretation of RICO could expose businesses to increased liability. On the other hand, groups like the American Association for Justice argue that limiting RICO’s reach could deny individuals compensation for economic losses stemming from corporate misconduct​