It's a huge blow to medical marijuana supporters. The Michigan appeals court says medical marijuana can not be sold through dispensaries.

In 2008, Michigan voters approved the use of medical marijuana.

Since then, some providers have set up organizations so that patients can find providers easier and buy from them, but a panel of three judges says that's illegal.

Robb Lapeen, founding member of the Cannabis Research Institute of America in Vienna Township says, "They've pretty much demonized the dispensaries and the cannabis dealers out there."

Lapeen says he set up an organization to allow marijuana caregivers and patients to meet at an office and allow them to buy and sell.

A Michigan court says that's illegal based on a Mount Pleasant dispensary, Compassionate Apothecary, that allowed members to buy and sell among each other.

The court says there's nothing in the law that allows this activity.

However, providers say there's nothing in the law that does not allow it.

"The biggest problem we have right now is that patients needs aren't being recognized," says Lapeen.

He says there's a waiting list of people wanting medical marijuana, but that there are few caregivers to help them. He says banning dispensaries will create another problem.

"They're going to perpetuate the black market. All the legal growers overages will go onto the black market if they are not allowed to go into the hands of certified patients."

Lapeen says he had more than 400 members in his group.

He's not sure how this will affect his business.

To be clear, medical marijuana is still legal in Michigan.

The judges are saying the activity of people with medical marijuana cards buying and selling from each other is illegal.

The court says it will listen to appeals on this case.