Another Outdoor-Cannabis Lawsuit Hits Illinois

OG Article By Cole Preston Watch Today's LIVE Episode on YouTube, X, and Rumble

July 28, 2025

I’ve followed this issue closely because many craft cultivators in Illinois, as has been reported for years and most recently by Crain’s Chicago Business, have struggled to open their doors and get product to market.

Many see outdoor cultivation as a way for the state to offer flexibility, not only for licensed operators but also for those legally allowed to cultivate at home, such as medical cannabis patients.

Illinois is an agricultural state where cannabis has grown naturally for years*, and the state has some of the most stringent testing requirements in the country, so it remains unclear to me what the concern is with allowing this activity to take place.

*Click to see cannabis growing naturally in Illinois during the 1980s.

Now, a recent report from Law360 confirms some of the details I shared early on and brings to light new information regarding the ongoing legal disputes over outdoor cultivation in Illinois. According to reporter Jonathan Capriel, Compass Ventures Inc., a subsidiary of Curaleaf, has filed a lawsuit against the Illinois Department of Agriculture (IDOA) over the agency’s refusal to approve a proposed 42,000-square-foot hoop house at its Montgomery County cultivation site.

According to the Law360 report, Compass alleges that its structure, which includes 24-hour surveillance, fencing, and other security measures, meets all legal requirements. The lawsuit claims that the IDOA rejected the permit on the grounds that the hoop house does not qualify as an “enclosed, locked facility,” citing a requirement for “solid walls and a solid ceiling.” Compass disputes this interpretation and, according to the complaint, argues that the agency has approved similar structures, referred to as “screenhouses,” for at least two other cultivators in the past.

The Law360 report notes that the complaint cites two prior circuit court rulings, one in Rock Island County and another in Fulton County, that reportedly struck down this exact interpretation. According to the article, both courts found the Department’s position invalid under the Illinois Administrative Procedure Act because it had not gone through the proper notice, comment, or publication process.

This follows my coverage of Green Thumb Industries (GTI) and Nature’s Grace and Wellness (NGW), who had received variances allowing outdoor cultivation under a prior administration. In 2024, I obtained and published the rescission letters issued to both companies, confirming that the Department had attempted to revoke those permissions. I was not able to get confirmation from any state official at the time, and I was not aware of anybody else sharing details related to any of this.

I tried to obtain information from the Department through multiple avenues, including a formal FOIA request and direct questions to public officials. All of my requests for comment or clarification were denied. I was told by high-ranking officials within the Illinois Department of Agriculture that the Department’s reluctance to speak publicly stemmed from the fact that outdoor cultivation was no longer permitted. I was told the Department was already facing legal action as a result of this attempted rescission, which is why they were not commenting on the issue.

According to the Law360 report, Compass is asking the Montgomery County Circuit Court to impose an injunction that would require the Department to process its permit request. The case, Compass Ventures Inc. v. Illinois Department of Agriculture, Case No. 2025MR28, could become a legal flashpoint in the broader conversation about the stringent requirements of cannabis cultivation in Illinois.

I have reached out to the attorney representing Compass for comment and plan to share any updates as more information becomes available.

You can read my previous coverage right here at thecolememo.com, including FOIA correspondence, the rescission letters, and more.

Credit to Jonathan Capriel at Law360 for advancing this story with new legal filings and context. Read his full report at Law360.com.

Edit #1:

The following statement was provided to The Cole Memo by a representative from Mattio Communications who communicated on behalf of Curaleaf Chairman & CEO Boris Jordan.

Read the whole story! at thecolememo.com