City of Monterey v. Carrnshimba CA6

In December 2009, Jhonrico Carrnshimba, operating a nonprofit corporation, MyCaregiver Cooperative, Inc. (collectively, appellants), opened a collective to dispense medical marijuana (Dispensary; Dispensaries) in the City of Monterey (City or Monterey). Shortly before incorporation of MyCaregiver, Carrnshimba applied for a business license with the City. He failed to disclose that he intended to operate a Dispensary in either the application or in subsequent communications in which the City sought clarification of the nature of his intended business. Shortly afterward, City personnel learned that appellants were dispensing medical marijuana. The City’s assistant city manager advised Carrnshimba that he had failed to disclose his intention to operate a Dispensary in the City; the operation of a Dispensary was not a permitted use under the City Code; the use was therefore prohibited; his business license application was denied; and he was to immediately cease and desist operating the Dispensary business. Eight days later (Jan. 19, 2010), the City passed an ordinance declaring a moratorium temporarily prohibiting the operation of any Dispensaries.

On February 8, 2010, the…