If upheld, this decision could lead to numerous lawsuits from businesses claiming loss of revenue and reputation due to wrongful shutdowns.

Attorney Lance Lazzaro, representing Cloud Corner, expressed optimism that a higher court will uphold the ruling, arguing that due process is compromised under the current law.

The city, led by Mayor Eric Adams, plans to appeal the ruling, which threatens a crackdown that has already closed over 1,200 illegal shops since the state legalized recreational marijuana.

This ruling could significantly impact the city's approach to regulating the cannabis market, which has been contentious since legalization in 2021.

A Queens judge recently ruled that a New York City law allowing the sheriff to shut down suspected illegal cannabis shops is unconstitutional, citing violations of due process rights for store owners.

The ruling stems from a case involving Cloud Corner, which was padlocked after a sheriff's inspection found suspected illegal cannabis sales, despite the owner's claim that the store was closed during the inspection.

Judge Kevin Kerrigan criticized the sheriff's authority to keep stores closed after raids, labeling the order as 'arbitrary and capricious' and highlighting a lack of meaningful opportunity for store owners to contest closures.

The ruling may halt the city's enforcement initiative, known as Operation Padlock to Protect, which has been praised by Mayor Adams as a success.

The operation was authorized by new powers granted in the state budget, allowing local authorities to inspect and close suspected illegal shops while hearings were pending.

Cloud Corner's defense was based on the argument that the sheriff's raid occurred outside business hours, thus invalidating claims of illegal sales.

Legal experts caution that it is too early to deem Operation Padlock a failure, as the ruling may not apply to all cases of illegal pot shops shut down.

Lazzaro has filed a separate class-action lawsuit challenging the legality of the city's enforcement actions on behalf of 27 businesses shut down through Operation Padlock.