Adult Store Wins in Federal Court, City Mulls Appeal

GROVER BEACH, Calif. — A federal appeals court has decided that Grover Beach adult retailer Diamond Video World was grandfathered in before a local ordinance banning adult stores in the downtown area took effect.

The 9th U.S. District Court of Appeals, 2-1, found owner Steve Diamond's business to be a legal, nonconforming use that existed lawfully before the zoning restriction became effective.

City Attorney Martin Koczanowicz plans to meet with city officials to decide whether to appeal the case to a larger panel of appeals court judges or the U.S. Supreme Court.

“We believe that he did not legally establish himself and that the trial court decision was correct,” Koczanowicz said, referring to a June 2005 decision by the U.S. District Court in Orange County that ruled that a Grover Beach zoning ordinance barring adult businesses downtown did not violate Diamond’s constitutional rights.

Diamond Adult World opened in Grover Beach in December 2003, and the City Council approved a zoning ordinance that allows adult businesses only in a coastal industrial zone in February 2004.

The appeals court decision ruled that the city zoning ordinance took effect when it was approved by the Coastal Commission on April 15, 2004, a month after a local moratorium on adult stores expired, said Diamond’s lawyer, Roger Jon Diamond. He is not related to Steve Diamond.

The amount of adult-oriented merchandise at the store was reduced to 25 percent and the store renamed Diamond Video World after the 9th Circuit Court of Appeals ruled in September 2005 that the store could not operate as an adult business during Diamond's appeal of the District Court decision. The store will return to 100 percent adult material immediately, according to Diamond's attorney.

Steve Diamond said Tuesday he was happy with the ruling, but if the city appeals it, he will continue fighting the case.

“It’s a situation where the city was proven wrong and we’re able to operate,” Steve Diamond said. “I was very happy about it. I always believed in it. I think right prevails.”

Steve Diamond said his business has not caused any problems in the community since it opened.

“It has nothing to do with children; it has nothing to do with prostitution,” he said. “It’s all politics and perception. If they had problems with us … we’d be closed by now.”

Related:  

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Dr. Carol Queen to Keynote 2026 XBIZ Expo Pleasure Products Trade Show

XBIZ is pleased to announce that Dr. Carol Queen, Good Vibrations staff sexologist, pleasure community historian, and curator of the Antique Vibrator Museum, will deliver the keynote address at the 2026 XBIZ Expo.

Orion Debuts 'Cuties' Vibrating Anal Plug Collection

Orion Wholesale has introduced its new Cuties Mini Butt Plug collection.

Ofcom Fines AVS Group $1.3 Million for AV Noncompliance

U.K. media regulator Ofcom on Wednesday imposed a penalty of one million pounds, or approximately $1.3 million, on AVS Group Ltd. after an investigation concluded that the company had failed to implement robust age checks on 18 adult websites.

Updated: Aylo to Help Test EU Age Verification App

Pornhub parent company Aylo plans to participate in the European Commission’s pilot program for its “white label” age verification app, a spokesperson for the company has confirmed.

Lovehoney Group, Xgen Sign Licensing Agreement for 'Pleasure Air' Tech

Lovehoney Group has signed a licensing agreement with Xgen for the latter to use the former's patented Pleasure Air technology in its pleasure products.

Missouri Lawmaker Attempts to Revive 'Health Warnings' for Adult Sites

A Missouri state representative has introduced a bill that would require adult sites to post notices warning users of alleged physical, mental, and social harms associated with pornography, despite a previous federal court ruling against such requirements.

Sportsheets Releases New Training Video for 'Indica' Collection

Sportsheets has released its latest training video, titled "The Indica Collection by Sex & Mischief," hosted by Brand Ambassador Rin Musick.

Orion Debuts 3 New Styles From Cottelli Lingerie

Orion Wholesale has introduced three new styles from its Cottelli Lingerie line.

Casey Murphy Launches 'Pleasure Brand Lab' Digital Marketing Tools

Sexual wellness marketing strategist Casey Murphy has launched Pleasure Brand Lab, digital marketing support for small and indie brands.

CAM4, Lovense Introduce New 'Interactive Control' Features

CAM4 has debuted a new suite of interactive Lovense control features for models.

Show More