The Blunt Realities of State Legalization and the Bankruptcy Privilege: In re Arenas, 535 B.R. 845 (10th Cir. BAP (Colo.) 2015)

By Ansley Owens, Contributing Writer and Intern for the NACTT Academy (Nashville, TN)

The United States Bankruptcy Appellate Panel of the Tenth Circuit recently affirmed a decision that denied relief to a Colorado couple who ran a marijuana growing and dispensing business.

Frank and Sarah Arenas (the “Debtors”) jointly owned a two-unit commercial building and a wholesale marijuana operation. The debtors leased one unit to Denver Patient Group, LLC, a marijuana dispensary.

The Debtors brought an eviction action against their lessee that resulted in $40,000 attorney’s fee award against them. Due to their inability to . . .

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