Cal. Finest 420 v. Cookies SF CA6

I. FACTUAL AND PROCEDURAL BACKGROUND1

California Finest and Cookies are entities involved in the cannabis and marijuana industry. Milam is a brand ambassador and influencer in that industry and the officer and manager of Cookies. Scott McPhail is the president and manager of California Finest. In 2015, the parties entered into a contract whereby defendants granted California Finest a license to use their images and trademarks for promotional purposes, and Milam agreed to perform certain activities to promote California Finest, in exchange for defendants receiving 150 shares of California Finest stock. In 2017, defendants sold those 150 shares back to McPhail and then provided notice that the agreement had been terminated by virtue of that sale. California Finest disagreed and commenced this lawsuit. A. Complaint According to the complaint, California Finest and defendants entered into a written agreement on September 23, 2015, to be performed in San Benito County. Although the complaint did not attach the complete agreement, it alleged that it included provisions whereby defendants granted California Finest “an exclusive, worldwide, perpetual, non-transferable, and irrevocable…