MANHATTAN (LN) — U.S. Magistrate Judge Gary Stein denied the Elfands' letter motion for leave to conduct limited early discovery May 29 in The City of New York v. Yazam, Inc. d/b/a Empower et al, finding the plaintiffs failed to show good cause for expedited discovery under Rule 26(d).
The Elfands, who own the Elfand Organization LLC doing business as Empire Cannabis Clubs, sued the city and state in August 2025 alleging warrantless inspections and seizures under laws they contend are facially unconstitutional. Their complaint also asserts claims for false arrest and unlawful deprivation of property under the Takings Clause, which were not addressed in Judge Cronan's preliminary injunction ruling and remain pending. U.S. District Judge John P. Cronan denied their emergency motions for a temporary restraining order and preliminary injunction in November 2025, ruling the Elfands lack standing to assert Fourth and Fourteenth Amendment rights belonging to their business entity.
The Elfands sought two categories of discovery. First, they requested identification of "individual officials responsible for executing, supervising, and approving the challenged enforcement conduct," including law enforcement officers, supervisors, government officials, and attorneys who participated in enforcement activity. Their complaint names up to 110 "John and Jane Doe" defendants. Second, they sought information about government employees who raised concerns about the legality of the enforcement practices, specifically naming Furney Canteen and Derrik Shuzenski.
Stein found the standing question weighs against early discovery. The order states that plaintiffs' ability to make out a prima facie case that can survive past the pleadings stage is in question. The city and state have indicated they will move to dismiss the complaint in its entirety, and Stein said allowing discovery now would waste the parties' resources and would constitute an undue burden on defendants.
The magistrate also found the requests go well beyond merely identifying individuals. The Elfands sought inspection logs, field notes, evidentiary records, and command records relating to three specific operations, as well as joint operational protocols and standard operating procedures regarding the broader enforcement scheme. Stein said this would require a comprehensive search for memoranda, emails, and other documents spanning multiple years.
Stein rejected the Elfands' claim that early discovery was necessary to support their claims. A ruling in Wellington v. City of New York, 2025 WL 2720818 (S.D.N.Y. Sept. 24, 2025), held that a plaintiff is not entitled to discovery to argue that she has sufficiently pleaded her claims.
The Elfands have appealed Cronan's standing rulings to the U.S. Court of Appeals (Elfand v. City of New York, No. 26-214 (2d Cir.)) and must amend their complaint by May 22, 2026. Empire Cannabis Clubs is subject to ongoing bankruptcy proceedings, which affects whether Empire can be added as a plaintiff.