Judge rejects Dayspring’s pot shop suit against SLO
February 8, 2023
By KAREN VELIE
A judge last week rejected Natural Healing Center’s lawsuit alleging San Luis Obispo improperly terminated the retail pot shop’s permit based on Helios Dayspring’s criminal history and dishonesty.
Dayspring, a local marijuana mogul, transferred ownership of his retail cannabis shops to his girlfriend Valnette Garcia in 2020, before he pled guilty to tax fraud and bribery charges. In Oct. 2021, city staff canceled approval for the Natural Healing Center cannabis shop because Dayspring had not disclosed the bribery or the fraud during the application process.
That was not legal, Natural Healing Center attorneys argued in a meeting with SLO City officials. “Dayspring has no connection” with the retail store they said.
After city officials rejected that argument, Natural Healing Center filed a lawsuit against SLO in Dec. 2021 alleging improper termination of its retail pot shop permit in which a new argument arose: selective enforcement of the rules.
Dayspring argued that city officials had treated him unfairly because the people from Megan’s Organic and SLOCal Roots also lied on their applications.
The owners of the other two pot shops falsify claimed they funded their shops independently and on their own. That was a lie, Dayspring said and he should know because he loaned them hundreds of thousands of dollars to get started.
The loans were supposed to turn into an ownership stake in each shop, maintaining Dayspring’s control of marijuana in SLO.
Attorneys for the city argued that Natural Healing Center did not provide evidence that the owners of the other two pot shops were required to disclose financial backers.
“Moreover, even if the city ‘selectively enforced’ its Municipal Code, selective enforcement is not a doctrine supporting a claim for affirmative relief against the city, inasmuch as Natural Healing Center does not allege it is part of a protective class.”
SLO County Superior Court Judge Rita Federman then sided with the city and dismissed Natural Healing Center’s lawsuit.
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