Cookies Ordered to Pay $8.4 Million After Breaching Haight Street Cannabis Deal with Cole Ashbury
In a high-profile clash at the crossroads of cannabis commerce and contract law, the Superior Court of San Francisco has confirmed a decisive arbitration award in favor of Cole Ashbury Group, LLC, against Berner’s Cookies—a prominent brand in the cannabis industry. The ruling enforces an $8.4 million arbitration award after Cookies Creative Consulting & Promotions, Inc. was found to have breached its agreement to purchase Cole Ashbury’s equity stake in a landmark Haight Street dispensary.
The heart of the dispute lies in a failed acquisition of “Berner’s on Haight,” the first licensed cannabis retail store in San Francisco’s iconic Haight-Ashbury neighborhood. The store was operated by Cole Ashbury under a licensing agreement with Cookies, the brand co-founded by rapper Gilbert Milam Jr., known professionally as “Berner.” Cookies had the right—but not the obligation—to purchase Cole Ashbury’s interest. More critically, the agreement gave Cole Ashbury a “Put Option,” which obligated Cookies to buy the business for $10 million if exercised.
Cole Ashbury did just that in May 2023, triggering the Put Option in accordance with the contract. Cookies, however, failed to pay or perform, and instead unilaterally terminated the agreement months after the deadline passed. Cole Ashbury, having invested years of equity, licenses, and social capital into the project—through San Francisco’s Social Equity Program—took the matter to arbitration. The arbitration was conducted under JAMS rules before Hon. David A. Garcia (Ret.), culminating in a three-day evidentiary hearing in October 2024. Following briefing and arguments, the Arbitrator issued a Final Award on April 9, 2025.
The numbers were unambiguous: $7.3 million in damages, plus over $1.1 million in attorneys’ fees and costs, for a total judgment of $8,433,955.08, with 10% post-judgment interest. Notably, Cookies’ counterclaims were dismissed outright—the Arbitrator found the company was entitled to nothing.
According to court filings, Cookies attempted a last-minute maneuver to salvage the relationship, offering to walk back its termination if Cole Ashbury dropped arbitration and forfeited its contractual rights. Cole Ashbury declined, and the court has now endorsed that decision by confirming the award under California’s Arbitration Act.This case underscores a vital truth in cannabis industry partnerships: branding power and celebrity cachet don’t excuse breach of contract. It also demonstrates how the courts are increasingly prepared to enforce hard-fought agreements—especially those tied to social equity efforts. Cole Ashbury, led by equity licensee Shawn Richard, now stands vindicated, with a path cleared to collect what’s owed.
For Cookies, the reputational cost may extend beyond the courtroom. A judgment of this magnitude could have ripple effects in investor circles, licensing negotiations, and the broader cannabis community. As the legal cannabis market matures, so too does the legal scrutiny of how deals are structured—and broken. This ruling doesn’t just confirm an award. It sends a clear signal: even the biggest names in cannabis must honor their word.
