TRUETT V. FREEDOM LEAF, 2021 OK CIV APP 26

Opinion:Truett v. Freedom Leaf, 2021 OK CIV APP 26
Subject matter:Appointment of Receiver for medical marijuana dispensary 
Date Decided:April 19, 2021; Mandate Issued June 30, 2021
Trial Court:District Court of Stephens County; Judge Graham
Route to this Court:Appeal from Order Denying Motion to Vacate Order Appointing Receiver; Assigned to COCA, Division I
Facts:Plaintiff filed suit against co-owner of dispensary, seeking an accounting of dispensary finances and alleging breach of fiduciary duty for mismanagement of company assets. Plaintiff also sought emergency relief and immediate appointment of a receiver to manage affairs of dispensary. Trial court granted the request (before process had been served of pending suit) and receiver and his employees showed up to dispensary with the order to take over the operations. Defendant filed a Motion to Vacate the Order Appointing Receiver, which the trial court denied. Defendant appealed. 
Standard of Review:Abuse of Discretion
Analysis:Trial court abused its discretion when it refused to vacate the Order Appointing Receiver because it was issued over and against the clear weight of the evidence, and the inquiry made into the fitness of the receiver was insufficient under the circumstances. The appeal bond was also set in error. 
Outcome:Reversed
Vote:Prince, J. (author); Goree, P.J., Mitchell, J. concur.
Other: This case is the first published decision from an appellate court of the state involving appointment of  a receiver to take control of a medical marijuana dispensary.