SAN FRANCISCO (KCBS) — The City Of Oakland continues to do battle with the Federal government in court attempting to keep the doors of its largest medical marijuana dispensary open. The arguments were heard Tuesday by three-judge panel from the U.S. 9th Circuit Court of Appeals in San Francisco.

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Through forfeiture laws, the U.S. Justice Department is seeking to seize Oakland’s Harborside Health Center which is the largest medical marijuana dispensary in the country. Oakland City Attorney Cedric Chao argued the city should have standing in the case despite now owning the building.

“When you have an injury but you don’t have any other way into court. There’s no stature that gives you that right but you can agree by government action, then you can bring an APA (Administrative Procedure Act) action,” he said.

Chao also claimed the city would be injured if the business closed by losing tax revenue and he also argued the city has the right to ensure the health and well being of its citizens.

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Members of the three-judge panel asked many questions about the city’s interest and then also asked the attorney for the U.S. Justice Department why they picked this fight since Congress defunded the federal war on medical marijuana in December.

Oakand City Attorney Barbara Parker said she believes the U.S. attorney should drop the case.

“We are taking one step at a time. We’re still hopeful but regardless of this outcome, we will be moving forward with other measures.”

She says those other measures could include seeking state legislation and reaching our to federal representatives in congress.

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It is unclear when the panel will make a ruling in the case.