Medical marijuana legal battle brewing in New Brunswick

Marijuana for Trauma Inc.,has filed a lawsuit against licensedmedical marijuana producer OrganiGram Holdings Inc., over the development of Trauma Healing Centers across the countryfor veterans and others dealing with post-traumatic stress disorder.

Fabian Henry, founder and president of the Oromocto-basedcompanyMarijuanafor Trauma, alleges Moncton-based OrganiGram unlawfully terminated a partnership and inappropriately used proprietary information indocuments filed with the Court of Queen's Bench in Fredericton on July 6.

But OrganiGram denies there was ever an agreement and intends to file a counter claim, spokesman Brett Allan said in a statement.

"We believe this lawsuit to be an attempt to embarrass the principals and the company as well as to deflect from the failure of MFT to fulfill an employment contract they signed with [Trauma Health Centers]in 2014."

None of the allegations have been proven in court.

Marijuana for Trauma's lawsuit allegesbreach of confidence, conversion, breach of contract, conspiracy and breach of trust, breach of fiduciary duty and negligent misrepresentation.

"We had an agreement with OrganiGram and [CEO]Denis Arsenault to expand our services assisting veterans suffering from PTSD," Henry said in a statement.

"The agreement was supposed to create a seamless experience for approved clients in need of a referral to a licensed medical marijuana producer. The termination of our business arrangement and subsequent use of our business and expansion plans is unlawful and will affect our ability to help hundreds of veterans," he alleged.

OganiGram, however, alleges that Marijuana for Trauma has been signing "exclusive" deals with a number of licensed medical marijuana producers across the country and not fulfilling its contractual obligations.