Puffy’s Dispensary has filed a 23-page lawsuit against Rapid City in Seventh Judicial Circuit Court, alleging the city failed to follow its own medical cannabis ordinances and misled the company about the status of several dispensary locations.
Manager Kittrick Jeffries said the lawsuit aims to ensure fairness and consistent rule enforcement, not conflict. The suit also claims the city improperly shared sensitive business information with a competitor and denied a 2023 building permit for 910 Main St. without proper justification or due process.
According to the filing, a city attorney cited ongoing litigation between Puffy’s and the South Dakota Department of Health as the reason for the permit denial. Puffy’s argues this rationale was improper and retaliatory, referencing a 2021 text from a city employee expressing interest in joining the business—an offer Puffy’s declined due to conflict-of-interest concerns.
Puffy’s was awarded seven of the city’s 15 medical cannabis licenses in 2021 and built two locations. The remaining five licenses are tied up in a legal battle with the state. A hearing on Puffy’s motion for summary judgment is scheduled for Dec. 2. The city has acknowledged receipt of the lawsuit but declined to comment on its merits.
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