Case Must Be Dismissed Where Debtor Intended to Lease Real Property to a Marijuana Dispensary

In In Re Basrah Custom Design Inc., the debtor, a custom cabinetmaker, filed for bankruptcy days after a state court ordered it to sell certain real property in accordance with a contract it had with a state-licensed marijuana dispensary. The U.S. Trustee and the dispensary sought dismissal of the case. The court dismissed the bankruptcy case, determining that cause existed for dismissal because of the debtor’s desire to lease or sell the property to a party who would operate it as a marijuana dispensary business, which is illegal under the Controlled Substances Act.

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