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March 25, 2024

Clinton cannabis company settles $460K lawsuit over unpaid HVAC installation

A large industrial building Image | Courtesy of Google Maps Milkmen Cannabis, a cannabis cultivation and production facility that has proposed a location at 75 Green St. in Clinton (pictured above), has settled a $460,040 lawsuit over unpaid invoices.

An October lawsuit filed by a Woburn-based HVAC equipment sales and installation company against a Clinton-based cannabis cultivation company has resulted in a settlement. 

The lawsuit, filed on Oct. 26 by Chiller Technology in Middlesex County Superior Court, sought $460,040 in damages over alleged unpaid invoices from Milkmen Cannabis, a proposed 10,000-square-foot cultivation and production facility in Clinton. The lawsuit alleged Milkmen had failed to pay for work relating to the installation of HVAC equipment at the facility. 

Milkmen did not file a responsive pleading to the lawsuit or otherwise defend the case, leading to a default ruling against the company in November. A damage assessment hearing was scheduled for March 13, but that hearing was canceled after Chiller’s legal team informed the court a settlement had been reached. 

John Perten, an attorney from Boston-based law firm Sheehan Phinney Bass & Green, which represented Chiller in the case, declined to disclose details of the settlement to WBJ. 

It’s unclear whether Milkmen is still moving forward with its intent to open the Clinton facility. The company has received a final license from the state’s Cannabis Control Commission and a provisional license for its product manufacturing license, but the company has not received permission from regulators to commence operations with either license. Application information submitted to regulators showed the company planned to begin cultivation operations in early 2022. 

The company’s website is inactive and a call to a phone number listed on Milkmen’s application was not immediately returned. 

A number of lawsuits have been filed involving Central Massachusetts cannabis companies since 2022, as the industry deals with oversaturation, declining prices, and other growing pains.

Greatest Hits, a Dudley-based operator of dispensaries, has been sued for alleged unpaid invoices relating to products it purchased on the wholesale market from a Chelsea-based cultivator. Discern'd Cannabis Purveyors in Grafton is facing a lawsuit over alleged unpaid debt, and Cresco Labs, a Chicago-based cannabis company with a location in Leicester, is suing a cannabis company with locations in Wellfleet and Attleboro for an alleged lack of payment.

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