The Nova Scotia Supreme Court ordered the province in February to reimburse Sally Armstrong $28,376 after she provided invoices for marijuana she bought from the Cannabis Buyers's Club of Canada.
The appeal court has set aside that decision, ruling that the receipts Armstrong provided do not constitute proper documentation for medical marijuana because the Cannabis Buyers' Club does not meet the criteria to legally supply the drug.
In their ruling, the three appeal court justices said the money that the province has paid should be returned without delay.
Armstrong, who is on social assistance, has a prescription for medical marijuana.
The appeal court says a previous ruling that requires Nova Scotia to pay for Armstrong's medical marijuana remains in effect with the condition that the receipts provided are from Health Canada or a legitimate supplier.