Hemp seed legal battle: Colorado firm sues for $1.4M

Hemp Seeds

The dispute: A failed hemp seed transaction

In a legal confrontation that spotlights the burgeoning complexities within the hemp industry, MH Consulting LLC, operating as Trilogene Seeds from Boulder, Colorado, has initiated legal action to recover $1.4 million from an Oregon-based farming operation, Four Seasons LLC. This lawsuit emerges from a deal involving 19 million industrial hemp seeds, designed for CBD and other cannabinoid production, which has ostensibly soured.

The deal's breakdown

Under the terms of the agreement, Four Seasons LLC committed to purchasing hemp seeds valued at $1.68 million. However, to date, only a fraction of this amount, precisely $276,460, has been remitted through Salt Capital LLC, a financial advisory entity based in California that was intricately involved in the transaction. Salt Capital, alongside its founder Donald Doungpanya, who is also implicated individually in the lawsuit, purportedly facilitated the seed purchase and engaged in the pricing negotiations.

Salt capital's stance

Donald Doungpanya, representing Salt Capital, delineated his firm's role as merely a "financial handler" in this transaction, tasked with the disbursement of payments from the proceeds accrued by Four Seasons. He attributed the non-payment to the failure of the farming company, resulting in the absence of distributable funds.

Legal implications and demands

The lawsuit posits that the defendants, including Four Seasons and Salt Capital, were cognizant that the hemp seed deliveries were not gratuitous but were transactions expecting full financial compensation. MH Consulting alleges that its multiple requests for payment, dispatched to both Four Seasons and Salt Capital, were disregarded.

The quest for justice

MH Consulting is now seeking recompense for the outstanding payment, in addition to a weekly interest rate of 2.5% for each week the payment remains overdue. This legal move underscores the firm's determination to uphold the terms of the agreement and secure the funds rightfully owed.

This legal battle between MH Consulting LLC and the Oregon and California-based companies serves as a cautionary tale within the hemp industry, highlighting the importance of fulfilling contractual obligations and the potential ramifications of failing to do so. As the industry continues to evolve, such disputes underscore the need for clear agreements, transparent operations, and reliable financial handling to prevent similar occurrences in the future.

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Robin Roy Krigslund-Hansen

Robin Roy Krigslund-Hansen

About the author:

Robin Roy Krigslund-Hansen is known for his extensive knowledge and expertise in the fields of CBD and hemp production. With a career spanning over a decade in the cannabis industry, he has dedicated his life to understanding the intricacies of these plants and their potential benefits to human health and the environment. Over the years, Robin has worked tirelessly to promote the full legalization of hemp in Europe. His fascination with the plant's versatility and potential for sustainable production led him to pursue a career in the field.

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