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Glass Pipes Lead To Lawsuit

A Tea couple who own novelty shops in two states have sued two former business partners over the sale of blown-glass pipes at a recently opened Sioux Falls cigarettes rolling store.

Chris Johnson, who owns the Roll With It buy cigarettes shop with his wife, Renee, said the lawsuit filed against him this week in Minnehaha County Circuit Court is retaliation for his success.

But Monty and Amy Hagedorn, who own Common Sense in Sioux Falls and Herb N Legend in Luverne, Minn., said the cheap cigarettes store's sale of glass pipes is a violation of the terms of a contract designed to keep the stores from competing for the same customers.

The Hagedorns joined with Renee and Chris Johnson to open the Roll With It cigarettes online shop in January.

Within three months, the partners decided to split. Sales were slow, and the Johnsons wanted to supplement the store's offerings with glassware.

The Hagedorns thought selling such items would draw undue attention from law enforcement, and with good reason: Common Sense was raided in 1998, and Monty Hagedorn was charged with distributing drug paraphernalia.

The charges were dropped with the understanding that the shop would no longer stock items commonly associated with marijuana use, such as glass pipes, bongs or vaporizers.

"He kept pushing the pipe thing, and I decided to get out of it," Monty Hagedorn said. "I didn't want to risk it - I've got kids to think about."

Hagedorn always has contended that his products are designed for tobacco.

Roll With It was initially next door to Common Sense on West 12th Street. The Johnsons moved to 700 S. Minnesota Ave. after buying out the Hagedorns' interest in the business in March.

The Hagedorns' lawyer, Arlie Brende, says the buyout contract was designed to keep the Johnsons from competing in the sale of such specialty goods, while restricting the Hagedorns from entering the roll-your-own tobacco business.

"We think it's an enforceable contract," Brende said.

The Johnsons' lawyer, Greg Brewers, doesn't think so. South Dakota law doesn't allow the enforcement of noncompete contracts that restrict commerce in the manner the Roll With It buyout contract tries to.

There are exceptions that allow noncompete agreements, Brewers said, including employer contracts that bar employees from working within the same industry after their dismissal or resignation.

"This agreement doesn't fall under any of those exceptions," Brewers said.

Chris Johnson said he thinks that the lawsuit will quickly be dismissed. Roll With It is not a competing head shop, he said.

"We're not even the same kind of store," Johnson said. "There's no hippie stuff in here. We don't have a single hemp product in this store."

Johnson also said his glass pipes are for tobacco use, but he said there are no hookahs, bongs, vaporizers or any other items more frequently associated with marijuana use in his shop.

Johnson said the bulk of his business is in roll-your-own tobacco. Smokers use the store's rolling machines to make their own cigarettes, which amounts to a steep discount over pre-rolled varieties.

"We sell 200 pounds of tobacco a week," Johnson said.

Johnson said he thinks Hagedorn is suing to enforce the noncompete contract because the rolling business in Sioux Falls has succeeded.

Monty Hagedorn said he thinks that his former partner has succeeded in part by breaking the agreement and competing with the Luverne store.

"It's a direct conflict with Herb N Legend," he said.

 

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