Local medical marijuana cultivator sued for breach of payment
FRX is a defendant in a $2.3 million-plus lawsuit for breach of payment for construction work at a marijuana cultivation/processing plant on Harvey Avenue in East Liverpool. (Photo by Kristi R. Garabrandt)
EAST LIVERPOOL — A Pennsylvania-based cannibas company has been named a defendant, along with seven subcontractors, in a $2.3 million-plus lawsuit for breach of payment for construction work on the FRX marijuana cultivation/processing plant in East Liverpool.
FARMACEUTICALRX,(FRX) (Farm RX) in a 2021 press release billed themselves as the “leading natural and organic vertically integrated medical marijuana multi-state operator in the United States.
Palmer Construction Co. Inc. of McConnellsburg, Pa., filed the lawsuit in Columbiana County Common Pleas Court to collect on two mechanics’ liens in the amounts of $1,485,552 for the cultivation project and $901,061 for the processing project for the facility located at 2000 Harvey Avenue, East Liverpool.
Besides FRX Real Estate Holding Company of Ohio, LLC of Columbus, doing business as FARMACEUTICALRX, the defendants include Protech Electrical Contracting LLC of East Liverpool, Wreck It Rich LLC of Louisville, Climatech Inc., of Bridgeville Pa., Tolson Comfort Systems of Salem, North Coast Fire Protection Inc. of Warren, Sanford Plumbing of East Liverpool, and Westhead Associates Inc., of Sewell, N.J.
According to court documents, the seven subcontractors are named defendants or necessary parties in the lawsuit because they each have filed for mechanics’ liens against the Harvey Avenue property.
The liens are recorded with the Recorder’s Office of Columbiana County.
The lawsuit alleges FRX failed to pay Palmer for work performed under a general construction contract on two projects that comprise part of the cultivation/processing facility.
Court filings state that on June 3, 2021, FRX entered into a written agreement with Palmer, where in exchange for payment, Palmer would perform cultivation work including endcap renovations to the Harvey Avenue property.
Palmer’s work with FRX began March 14, 2021 and ended July 1, 2022.
FRX in March and April of 2022 entered into additional contracts through letters of intent for additional improvements for the processing portion of the Harvey Avenue property in which work began on May 16, 2022 and ended on June 6, 2022.
Court filings said Palmer performed its agreed upon work as outlined in the contract with FRX including providing all the necessary labor, materials and equipment, but to date, Palmer has not been paid for the full amount due.
Court records also said that although Palmer has ceased working at the facility, the property has been in use and operational based on the work performed by Palmer and its subcontractors.
FRX set a payment schedule in July 2022 to pay Palmer, but payments have yet to be made.
Due to the failure to pay, Palmer requested the court recognize that Palmer does hold valid mechanic’s liens against the property and to foreclose on and order the sale of the property with the profits to be paid to Palmer, for the amount of the liens, along with interest, counsel fees and court costs.
Palmer is being represented by Cohen Seglias Pallas Greenhill & Furman PC of Pittsburgh, Pa., with Lori Wisniewski serving as the main attorney.
There is no attorney of record listed yet for FRX, which also owns a medical marijuana dispensary on Dresden Avenue in East Liverpool.
The case is set for review March 20 by Judge Scott Washam.
Multiple calls made to FRX owner Rebecca Myers, and corporate offices, have not been returned and emails have not been answered.
The East Liverpool Safety Service Department and Mayor’s Office personnel were unable to provide any information on the lawsuit when contacted.
Kgarabrandt@mojonews.com


