Cannabis Law Panel Discusses Budding New Industry

Four lawyers play twenty questions

ERNEST TAM (1L)*

PHOTO CAPTION: LEFT TO RIGHT: RUSSEL HALL, SAM CARSLEY, JONATHAN SHERMAN, MARK CAVDAR, BEN BARRETT (1L), ERNEST TAM (1L). PHOTO CREDIT: ILYA MOTAMEDI.

On March 7, the newly-minted Cannabis Law Club hosted its inaugural event with four panelists—two in-house lawyers and two from full-service firms—who provided a diverse range of opinions on the current state of cannabis law in Canada. The panelists gave some insight on what it is to “practice cannabis law”, the direction of the cannabis industry, and some current and future legal issues in the field. The event was well-attended and the audience was well-fed with sweet-and-sour chicken and chow mein.

When asked to comment on the heavy restrictions placed on the industry, the panel generally agreed that the current regime is prudent. Russell Hall, an Associate at Davies Ward Phillips & Vineberg LLP, also commented that although “restrictions are very tight, the Cannabis Act is subject to review after three years. Maybe at that time, it will be more liberalized.”

However, Mark Cavdar, Director of Legal

Affairs at Aphria Inc., thinks that adopting the tobacco sales and marketing regime for cannabis was the path of least resistance but is ultimately misaligned with the aims of legalization. “Cannabis is still sold like a bag of poison”, Cavdar commented in reference to the lack of branding on retail cannabis products, each affixed with a red stop sign with a cannabis plant inside. “We have to combat this stigma and current restrictions are not aligned with the goals of the system.”

Jonathan Sherman, Partner and Co- Chair of Cannabis Group at Cassels Brock & Blackwell LLP, remained optimistic in the de-stigmatization of cannabis. “No one knows about cannabis and companies can’t advertise it nor inform consumers… we have a few months of recreation, but not really. We don’t have any stores in Ontario. Once we see what it is like to have stores, things will change from there and [the public perception of cannabis] will

probably shift away from something like tobacco to something more like alcohol.”

The panel had mixed feelings on the “grey market” and illegal marijuana dispensaries currently in operation. Cavdar acknowledged the presence of the grey market, but stated that joints and marijuana buds will be quickly outdated: “There will always be a dealer, and some people will use them. But innovation in the industry will cut the market. People won’t touch flower in 10 years.”

Hall highlighted the importance of accessibility and education, which was heavily lacking pre and post-legalization: “So many people went back to dealers. Many people think the grey market areas are legal but they are fully illegal. There needs to be better education on legitimate sources.”

For law students that want to get involved in the cannabis-space, Hall suggested looking up the actual legislation scheme to understand the regulations surrounding

the industry, as well as subscribe to press releases from all the major cannabis companies to stay updated.

Sherman adds that “cannabis law” is similar to “sports law” in that is related to many other areas of law, whether it be real estate, M&A, securities, or intellectual property. In this regard, lawyers from nearly every field of law have opportunities to work with cannabis, albeit to varying degrees.

“Any highly regulated industry lets you move into cannabis”, Cavdar added, as he credited his previous in-house position at an international tobacco company in helping him get to his current role at Aphria.

The views and opinions expressed in this article are those of the panelists and do not necessarily reflect the official position of Aphria Inc., Canopy Growth Corporation, Cassels Brock & Blackwell LLP, Davies Ward Phillips & Vineberg LLP, or the Cannabis Law Club.

*Ernest Tam (1L) is an executive member of the Cannabis Law Club.