Represented a client in litigation in Michigan relating to a cannabis ballot initiative in the City of Detroit.

Charles E. Murphy
Charles Murphy Clark HillBirmingham
Charles E. Murphy
Of Counsel
Charles E. Murphy is Of Counsel in the Litigation Practice Group of Clark Hill PLC and has substantial business, regulatory, and litigation experience in the cannabis industry. He has significant litigation and arbitration experience in securities, construction, business, health care, commercial and contract disputes, minority shareholder oppression, corporate control, fraud, misrepresentation, interference with contracts and business relationships and other business torts, complex litigation, breach of warranty, distributor/supplier relationships, manufacturer's representative and franchise terminations, commission disputes, creditor-debtor actions, trade secrets, restrictive covenants, and unfair competition.
Charles has a sizable medical and adult-use marihuana practice advocating for industry participants on legal and regulatory policy and licensing at the state and local government level, including for a marihuana industry group; administrative licensing applications for growers, processors, provisioning centers, safety compliance, and secure transporters, at the state and local level; real estate leasing and acquisition, permitting, and zoning; zoning litigation with numerous municipalities; application selection and scoring litigation with numerous municipalities; counsel and drafting of state statute and local ordinance proposals (state recreational referendum initiative and 2017 City of Detroit opt-in initiative ballot proposals under the Medical Marihuana Facilities Licensing Act); election law disputes, including obtaining a September 2017 writ of mandamus compelling the City of Detroit to place an opt-in initiative petition on the ballot and defending the two City of Detroit voter-approved initiative ordinances ; campaign finance law compliance for ballot measure committees; business entity structuring; investment and mergers and acquisitions for owners, investors, and lenders; capital raises and lending transactions; and litigating industry-related business disputes.
Charles has significant experience in securities law and regulation representing broker-dealers, principals, and registered representatives in sales practice cases involving financial services and insurance products and representing shareholders, officers and directors in securities related disputes. He has conducted customer and industry arbitrations, securities compliance, regulatory and disciplinary proceedings and has navigated departures and hires of registered representatives. For most of his career, Charles has represented individual physicians, physician groups and hospitals, including cases involving staff privileges, interference with hospital contracts, physician shareholder disputes, state certification requirements, and licensing board investigations and hearings. He has been selected to serve as an arbitrator in physician staff privilege hearings at hospitals. He has special expertise in trust and estate litigation involving breach of fiduciary duty, will and trust contests and accounting and legal malpractice. Charles has handled employment termination, discrimination and sexual harassment cases and has extensive experience negotiating and drafting contracts and licensing agreements.
He has tried jury and bench trials in federal and state court, FINRA and AAA arbitrations , and administrative agency hearings.
Presentations & Publications:
- Author, "Business of Marihuana in Michigan," the Institute of Continuing Legal Education, September 2018
- Presenter, "Business of Marihuana in Michigan," Business Law Section of the State Bar of Michigan, October 2018
- Author, "Michigan’s adult-use initiative: What you need to know," Marijuana Venture Magazine, October 2018
- Presenter, "Negotiating and Drafting Contracts in the Cannabis Industry," Marijuana Law Conference, Grand Rapids, Michigan, October 2019
- Author, "Negotiating and Drafting Contracts for Cannabis Industry Transactions," the Institute for Continuing Legal Education, 2019
Recent Matters:
- Defending Detroit voter approved medical marihuana opt-in initiative ordinances in 2018 and obtaining writ of mandamus compelling City of Detroit to place two initiative ordinances on the November 2017 ballot, including the opt-in licensing ordinance for medical marihuana
- Filing numerous litigation matters from 2017 to present with municipalities over zoning approval of marihuana facilities, medical marihuana regulatory ordinances, and applications for licenses and scoring.
- Representing more than 100 applicants and supplemental applicants for State of Michigan medical marihuana licensing, including one entity awarded more licenses than any other applicant to date. Represented a comparable number of applicants for municipal licensing.
- Defending former CFO of U.S. Manufacturing against claims arising out of the 2014 acquisition of U.S. Manufacturing by Wynnchurch Capital in the United States District Court for the Eastern District of Michigan.
- Representing the SEC Receiver for Legisi Marketing, Inc. vs. Sierra Equity, et al., in a FINRA arbitration. Receiver was appointed in an SEC Enforcement Proceeding that shut down the $72 Million Legisi internet Ponzi scheme. The FINRA arbitration involved securities fraud claims against the broker-dealer and representatives who sold restricted stock in former shell companies to Legisi Marketing. Arbitrators awarded $2,750,000 to Receiver after 4 weeks of hearings. See Wall Street Journal 10-9-15.
- Representing SEC Receiver in separate securities related cases against Royal Palm Real Estate Investment Fund LLP et. al. and against Elite Consulting Group, LLC and Edgetech, in the United States District Court for the Eastern District of Michigan.
- Represented the shareholders and former officers of Car.com in AAA securities arbitration in Phoenix, Arizona and a federal securities action in the Central District of California arising out of the acquisition of Car.com by Autobytel related to a financial restatement by Autobytel.
- Defended Delphi’s Director of Capital Planning in the SEC enforcement action against Delphi and its former officers and related securities matters, in the Eastern District of Michigan. Settled after 5 weeks of jury trial.
- Obtained favorable settlement of breach of fiduciary duty claims in Oakland County Probate Court and Circuit Court actions against former trustees of a trust and manager of a real estate LLC on behalf of beneficiaries of trust and members of LLC. Orchestrated seizure of control of the trust and LLC.
- Successfully defended Merrill Lynch Trust Company in a breach of fiduciary investment duty claim brought in Ann Arbor, Michigan.
- Represented Hunt Construction, the general contractor for the Northwest Airlines Mid-Field Terminal Project at Detroit Metropolitan Wayne County Airport in numerous construction cases in federal and state court arising out of delays, scheduling, acceleration, and termination of sub-contractors with over 100 million dollars at issue.
- Successfully obtained dismissals of four cases at trial and appellate level brought by the Fort Street Presbyterian Church against the Presbytery of Detroit in the Wayne County Probate Court alleging mismanagement of two endowment funds and breaches of fiduciary investment duties.
- Represented two registered representatives of UBS in a FINRA Review of closed-end fund trading practices at the UBS Scottsdale, Arizona office. FINRA Review discontinued following depositions.
- Represented broker-dealer, investment advisor and two principals in FINRA arbitration involving claims of securities fraud and suitability.
- Represented a regional bank in a FINRA arbitration against a broker-dealer and insurance company arising out of the inappropriate sale of bank-owned life insurance (BOLI) to officers of the bank.
- Achieving a $7,000,000 settlement buy out during arbitration hearing on behalf of a minority shareholder of a precast construction company.
- Successfully shepherding and negotiating departures of registered representatives from numerous broker-dealers and negotiating employment agreements with broker-dealers.
- Represented several high level Collins & Aikman executives against Collins & Aikman Corporation, et al., in an adversary proceeding in United States Bankruptcy Court, Eastern District of Michigan, Southern Division. Case involved issue of whether the Collins & Aikman “Top Hat Plan” for executives complied with the Plan and ERISA so as to be excluded from the debtor’s estate.
- Obtained a favorable settlement on behalf of two beneficiaries of a substantial family trust against a bank and one of the largest Michigan law firms in a case involving breach of the prudent investor rule and breach of fiduciary duties in the management of a hedge fund which stuffed its gain to the trust.
- Served as an internal arbitrator at Henry Ford Health Systems in a physician staff privilege hearing.
- Represented the Russian Federation and its Federal Atomic Energy Agency (FAAE) in a federal action in the Eastern District of Michigan to recover $300 million of smuggled isotopes from a Russian company and its majority shareholder who had fled to St. Kitts.
- Defending and achieving a favorable resolution and dismissal of a Florida construction company in an action brought by its former president in Fort Myers, Florida.
- Serving as a facilitator in an automobile supplier contract dispute involving Johnson Controls, ThyssenKrupp Steel Services and other entities.
- Obtaining a no-cause following trial for Bondpage.com (Cambridge Group Investments), an internet bond broker-dealer, in a FINRA securities arbitration brought by a customer in Los Angeles, California.
- Representing the YMCA of Metropolitan Detroit and the American Red Cross in separate will and trust contests in Oakland County Probate Court.
- Defending a registered representative in a FINRA arbitration brought by several customers over a failed investment sold to the customers by an unrelated promoter.
Bob Gordon and Charles Murphy were mentioned in an October 9, 2015 Wall Street Journal article, “Ponzi Schemer’s Bad Investments Lead To Arbitration Award”, regarding a securities fraud case before FINRA arbitrators in which they obtained a $2.75 million consent award, following four weeks of hearings conducted by Charles Murphy and Eric Shih.
Successfully defending a trustee in an undue influence and breach of fiduciary duty case in the Wayne County Probate Court.
Representing a Michigan flooring contractor in several construction litigation disputes
Defending a registered representative in a FINRA arbitration brought by several customers over a failed investment sold to the customers by an unrelated promoter.
Representing the YMCA of Metropolitan Detroit and the American Red Cross in separate will and trust contests in Oakland County Probate Court
Defending Chase Manhattan Mortgage Company in several real estate cases in Wayne County Circuit Court.
Serving as an internal arbitrator at Henry Ford Health Systems in a physician staff privilege hearing
Obtaining a no-cause for Bondpage.com (Cambridge Group Investments), an internet bond broker-dealer, in a FINRA securities arbitration brought by a customer in Los Angeles, California
Obtaining summary dismissal of a business claim brought by a broker-dealer against a departing representative
Successfully obtaining judgment and collection in Oakland County Circuit Court against a series of real estate LLC entities, including reverse piercing
Successfully representing Comerica Bank in a complex will and trust contest in the Wayne County Probate Court
Representing elderly investors in two FINRA arbitrations involving the inappropriate sale of variable life and annuity products
Obtaining a favorable settlement on behalf of two beneficiaries of a substantial family trust against Standard Federal Bank and one of the largest Michigan law firms in a case involving breach of the prudent investor rule and breach of fiduciary duties in the management of a hedge fund which stuffed its gain to the trust
Serving as a facilitator in an automobile supplier contract dispute involving Johnson Controls, ThyssenKrupp Steel Services and other entities
Represented the Russian Federation and its Federal Atomic Energy Agency (FAAE) in a federal action in the Eastern District of Michigan to recover $300 million of smuggled isotopes from a Russian company and its major shareholder who had fled to St. Kitts
Defending and achieving a favorable resolution and dismissal for Norstar, a Florida construction company, in an action brought by its former president in Fort Myers, Florida
Representing broker-dealer, investment advisor and two principals in FINRA Case No. 08-04137. Nature of Case: Securities fraud and suitability
Defending Delphi’s Director of Capital Planning in the SEC enforcement action against Delphi and its former officers and related securities matters, in the Eastern District of Michigan
Successfully obtaining dismissals of four cases brought by the Fort Street Presbyterian Church against the Presbytery of Detroit in the Wayne County Probate Court alleging mismanagement of two endowment funds and breaches of fiduciary investment duties
Representing two registered representatives of UBS in a FINRA Review in fall 2008 of closed-end fund trading practices at the UBS Scottsdale, Arizona office. FINRA Review discontinued following depositions
Representing a regional bank in a FINRA arbitration against a broker-dealer and insurance company arising out of the inappropriate sale of bank-owned life insurance (BOLI) to officers of the bank
Representing the shareholders and former officers of Car.com in AAA securities arbitration in Phoenix, Arizona and a federal securities action in the Central District of California arising out of the acquisition of Car.com by Autobytel with stock subject to a later financial restatement by Autobytel
Representing Hunt Construction, the general contractor for the Northwest Airlines Mid-Field Terminal Project at Detroit Metropolitan Wayne County Airport in numerous construction cases in federal and state court arising out of delays, scheduling, acceleration, and termination of sub-contractors with over 100 million dollars at issue
Achieving a very substantial settlement buy out during arbitration on behalf of a founding oppressed minority shareholder of National Precast, Inc., a precast construction company
Successfully shepherding and negotiating departures of registered representatives from numerous broke-dealers and negotiating employment agreements with broker-dealers
Represented several high level Collins & Aikman executives, vs. Collins & Aikman Corporation, et al., in United States Bankruptcy Court, Eastern District of Michigan, Southern Division, Adversary Proceeding No. 08- 04709-swr. Case involved issue of whether the Collins & Aikman “Top Hat Plan” for high level executives complied with the Plan and ERISA so as to be excluded from the debtor’s estate
Representing the Receiver for Legisi Marketing, Inc. and Gregory McKnight, vs. Alan Goddard McGowan Pak & Partners, et al., FINRA 09-01690. Receiver was appointed in an SEC Enforcement Proceeding brought against Gregory McKnight and Legisi Marketing, Inc. for operating an internet Ponzi scheme. The FINRA arbitration involves suitability, churning, and other claims against the broker-dealer and representatives who sold restricted stock in former shell companies to Legisi. Also pursuing separate securities claims against Elite Consulting Group, LLC and Edgetech, Case No. 2:09-cv-10772, and against Royal Palm Real Estate Investment Fund LLP et. al. Case No 2:09-cv-1170, in the United States District Court for the Eastern District of Michigan
Successfully defending Merrill Lynch Trust Company in a breach of fiduciary investment duty claim brought in Ann Arbor, Michigan