COLUMBUS, Ohio -- Unsuccessful medical marijuana cultivator applicants challenging the state's process for awarding the lucrative grow licenses hit a major setback in court on Thursday.

Franklin County Common Pleas Judge Kim Brown denied five companies' request for a preliminary injunction to scrap the medical marijuana grow license scores and start over from the beginning.

Brown concluded the lawsuit filed by CannAscend Ohio LLC, Appalachian Pharm Products LLC, CannaMed Therapeutics LLC, Palliatech Ohio LLC, and Schottenstein Aphria LLC was premature because the companies haven't aired their appeals in administrative hearings. Furthermore, Brown wrote in her order, the court does not have the authority to revoke winners' licenses as the rejected applicants sought.

"Plaintiffs' claims do not challenge the constitutionality of the medical marijuana control program statutes or regulations themselves, but instead challenge the constitutionality and validity of the way the Ohio Department of Commerce interpreted and applied the statutes in administering and implementing the licensing application process," Brown wrote.

The decision is a win for the department, the companies already granted grow licenses and for patients worried the lawsuit would further delay the program. But another lawsuit could still slow down the program.

Court sides with department

The Department of Commerce awarded 24 provisional cultivator licenses in November -- 12 for up to 25,000 square feet of grow space and 12 for up to 3,000 square feet. Losing applicants could appeal their scores to a hearing officer appointed by the department, and the agency's director would have the final say on the outcome of the hearing.

But the department delayed hearings and later put them on hold while a third-party accounting firm could validate all scores.

Attorneys for the state argued lawsuits were premature until after applicants exhausted all other remedies, namely the administrative appeals. Brown sided with the state.

Decision is inconsistent, marijuana companies say

But a different Franklin County judge came to the opposite conclusion earlier this month. Judge Richard Frye rejected the Department of Commerce's motion to dismiss a lawsuit brought by Ohio Releaf LLC.

Frye wrote that the department has failed to implement the appeals process and provide timely hearings. During hearings in the Ohio Releaf case, commerce officials said it would take a year to get through the 67 appeals filed by unsuccessful companies.

CannAscend's attorney Larry James said Thursday evening he was shocked by Brown's ruling, especially in light of Frye's recent opinion.

"Obviously, this is a major surprise and clearly from any reading of any of the testimony of that hearing and our presentation, [an administrative hearing] is not a viable option," James said.

Brown did not dismiss complaints that the department violated Ohio public records law.

What's next?

Frye is expected to make a decision in the other case within the next week. Ohio Releaf sought to pause awarding final operating licenses to the 12 larger growers until after the administrative hearings could be held. The Department of Commerce and patients intervening in the case argued that any delay will jeopardize the program being operational by Sept. 8.

The unsuccessful marijuana cultivator applicants also have argued that the department's own rules prevented it from issuing additional licenses before Sept. 9.

Brown wrote that the department has the power to award or revoke licenses if appropriate to remedy an appeal. The department did just that earlier this week, when it awarded a 25th grow license to a company edged out of top applicants because of a department employee's error.