The UK Government is being sued by a CBD business for £3.4m, in the latest major challenge to its mishandling of legal hemp.
Ocean Development (Dorset) Ltd. and connected retail business CBD Flower Shop Ltd. are seeking damages from the Home Office amid allegations of ‘unlawful conduct’ after a shipment of hemp was detained by the UK Border Force.
In less than one year, Jersey Hemp has won another landmark case, which forced the UK government to acknowledge that its seizure and sale of hemp products was illegal, without setting a precedent to avoid future cases.
This case may help clarify regulations, but it also comes at a time when reports indicate that a large number of hemp and CBD products are being temporarily impounded by the authorities only to have them released after lapsed months.
What is happening?
Shirley Anne Elizabeth Wood’s two companies, along with her son Joshua Wood Wood, filed a suit against the UK Government, alleging Border Force illegally confiscated 10 shipments legal imported hemp from August 2023 to May 2024.
Border Force classified these shipments incorrectly as controlled drugs, even though hemp was legal in the UK.
In a lawsuit filed at the High Court of Justice of England and Wales, under the case number of KB-2024-012634 the Home Office is accused of causing substantial financial harm and breaching the human rights laws.
The claimants argue that the seizures violated their right to peaceful enjoyment of possessions and label Border Force’s classification of hemp as a controlled drug ‘baseless’.
They also argue that the system intended to combat illegal cannabis imports has a disproportionate impact on legal hemp and CBD companies.
The system whereby true hemp can only be identified as a legal product after a long process of confiscation and condemnation during which time the claimant has been deprived [of] The claim states that “its possession can never be considered proportionate.”
As a result, the companies are seeking nearly £3.4 million in damages, including over £3.1 million for reputational harm to CBD Flower Shop and additional losses for the seized hemp and goodwill of Ocean Development.
The issue is ongoing
Josh Normanton, of Trinity Chambers, and Robert Jappie from Fieldfisher LLP are representing the claimants. They recently represented Jersey Hemp when it fought to clear its reputation.
In April last year, Jersey Hemp secured a ‘very significant victory’ against the UK Home Office after the government admitted to unlawfully banning the company from importing CBD products into the UK.
The High Court ruling overturned a decision by the Drugs & Firearms Licensing Unit (DFLU) that had threatened the legality of Jersey Hemp’s operations and posed a broader risk to the UK’s CBD industry.
Even though the ruling was in favor of the exemption criteria, there is still ambiguity regarding the legal implications of this. Experts in the field, such as Mr Normanton noted that Home Office’s concession did not set a precedent and left the door wide open for similar cases to happen.
Jersey Hemp focuses its case on the “Exempt Product Criteria”, under the Misuse of Drugs Regulations of 2000, that allows products with trace amounts of THC be sold and imported legally as long as certain conditions are met. Jersey Hemp claimed that the Home Office incorrectly classified its CBD products as being designed to administer controlled substances, despite them adhering to this regulation.
The Home Office admitted its mistake, admitting that their interpretation of the Regulations was illegal and too restrictive.
The Home Office admitted to acting unlawfully on Jersey Hemp after months of litigation in UK courts.”https://t.co/B7VQC7XteD
— End Cannabis Prohibition Jersey (@ecpj_campaign) March 13, 2024
Jersey Hemp is too late, even though the CBD ruling was a significant milestone. After its license was cancelled, the company lost 95 percent of its revenues. It had to lay off staff and sold equipment to creditors at a loss.
Assaults on the Rise
One source has reported that there is an increasing number of seizures. MEDCAN24 The UK Border Force is holding an increasing amount of hemp and CBD-related shipments.
It is believed that at least three different companies have had their imports held up for six months over minor labelling infractions. By the time they are released, however, it’s too late. They have already expired.
In the last week alone, UK Border Force announced its largest-ever drug seizure, seizing over 119 tonnes in illegal substances during the period ending March 2024. That’s a 52% rise from the prior year.
In England and Wales combined with police efforts a total 217,644 drugs seizures were made, which represents a 13 percent increase compared to the year 2023. The estimated street value of these confiscations is around £3 billion, marking a record-breaking year for law enforcement.
‘Herbal cannabis’ represented a significant chunk of this, seeing 74 tonnes siezed over the period, marking a near 60% rise year-on-year and representing the largest quantity recorded since 1973.