Michigan Cannabis Retailer Case Ruling Codifies Receiver Power

Receivers and courts overseeing Michigan businesses have wide-ranging authority to cancel leases and modify contracts, the state appeals court ruled in a case over a distressed high-profile marijuana company.

The three-court panel on Tuesday largely upheld rulings from a Lansing-based trial judge who oversees the receivership involving the Michigan-based Skymint, which defaulted on more than $100 million worth of loans from a lender affiliated with Canadian liquor and cannabis seller SNDL Inc. However, it sent part of the case back for further litigation.

The ruling, though, made clear the power wielded by courts and judge-appointed receivers that ...