Medford, Ore. -- A lawsuit against the city of Medford is in the works after a medical marijuana club lost it's appeal for a business license.
The Lounge, a medical marijuana club, on East Main Street in Medford, is still open despite the ruling.
Phil Studenberg is the lawyer representing the Lounge and says the club has done nothing wrong.
The city of Medford says the club charged a $10 cover fee to medical marijuana card holders, who were also given a gram of pot.
But Studenberg says while they did charge a $10 cover, that did not include a marijuana purchase.
Currently, medical marijuana is legal in Oregon but not legal federally.
That's one thing Medford City Councilor Daniel Bunn referenced last month, when talking about the council's decision with MaryJane's Attic.
"The city council has had a history of interpreting our business license policy to not allow activity that is unlawful," Bunn said.
Medford Police say MaryJane's Attic was operating illegally by dispensing medical marijuana, the council then revoked their business license.
But a circuit court judge ruled the store could re-open, at least for now, while the case is reviewed.
And that's what Studenberg is hoping will happen to the Lounge.