A four-year legal dispute between Humboldt County and local property owners has concluded with a federal settlement that drops more than $1 million in disputed penalties against a California couple. Corrine and Doug Thomas purchased a home and land in 2021, only to find themselves facing massive civil penalties alongside an estimated $200,000 demolition order for a barn on the grounds. The enforcement actions were linked entirely to alleged cannabis cultivation carried out by the previous owner before the couple acquired the property.
Daily Penalties and the Federal Challenge
Under Humboldt County’s cannabis code enforcement system, penalties attached directly to land parcels and accrued daily, reaching rates between $10,000 and $12,000 per day. As property owners awaited hearings to contest the claims, financial liabilities mounted rapidly. The Thomases joined four other landowners in 2022 to file a federal lawsuit challenging the practice. Among the plaintiffs was Rhonda Olson, who faced millions in proposed penalties on parcels purchased after cultivation had ceased, and Blu Graham, who waited years for a hearing to prove a greenhouse on his land was being used to grow vegetables rather than cannabis. The landowners argued the regime violated constitutional protections, citing due process guarantees and the Eighth Amendment prohibition against excessive fines.
Appellate Ruling and Settlement Terms
The litigation moved through the federal courts, where the U.S. Supreme Court declined to review a petition on jury trial entitlements before the Ninth Circuit allowed the excessive fines claims to move forward. The appellate court determined that the property owners had plausibly alleged constitutional violations regarding the county’s enforcement mechanisms. The resulting settlement resolves the dispute without an admission of wrongdoing by Humboldt County. Under the agreement, the county must dismiss all contested violation notices, fines, and fees against the five plaintiffs, removing the multimillion-dollar exposure confronting the Thomases and paying $350,000 toward their collective legal expenses and fees.
Reforms to County Enforcement Rules
The settlement introduces structural changes to how Humboldt County conducts future cannabis enforcement actions. Moving forward, the county must provide property owners with a formal warning and 30 days to respond before any penalties can be imposed. Property owners are also entitled to a hearing within 60 days, during which time daily fines are prohibited from accumulating. The federal court will maintain jurisdiction over the settlement for three years to monitor compliance with the procedural safeguards, establishing clear boundaries on retroactive liability while ensuring property buyers are protected from unverified code enforcement claims.
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