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 © 2026 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

Eye of Love Debuts 'Pheromone Perfume Oils' From 'Matchmaker' Line

Eye of Love has introduced Pheromone Perfume Oils from its Matchmaker collection.

Full Circle to Debut 50 Pleasure Products at Altitude Intimates

Full Circle will introduce 50 new pleasure products at the Altitude Intimates Show in Las Vegas later this month.

Orion Debuts 'Triple Teaser RC' Vibrator From 'You2Toys' Line

Orion Wholesale has introduced the new Triple Teaser RC vibrator from its You2Toys line.

Women's Health Reviews Le Wand 'Dive'

Women’s Health recently published a review of the Le Wand Dive waterproof wand vibrator.

Honey Play Box to Introduce 'Vibrosa Mini' Egg Vibe at Altitude Intimates

Honey Play Box will unveil its new Vibrosa Mini discreet, triple-stimulation egg vibrator at the Altitude Intimates Show in Las Vegas later this month.

FTC Invites Public Comment on 'Click to Cancel' Rulemaking

The Federal Trade Commission (FTC) announced this week that it is seeking public comment on whether it should amend its Negative Option Rule to better address deceptive or unfair practices.

Icon Debuts New 'Ultra' Panty Vibe

Icon Brands has introduced its new Ultra panty vibrator.

CalExotics Debuts 'Endless Summer' Vibe Collection

CalExotics has introduced its new Endless Summer collection of three vibrators.

Orion Expands 'Beau Coeur' Collection

Orion Wholesale has introduced four new pleasure products from its Beau Coeur collection.

Show More