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

Pornhub Unblocks UK Users on iOS Devices, Citing Apple AV Effectiveness

Pornhub parent company Aylo on Tuesday announced that users in the United Kingdom will once again be able to access the popular site if they are using Apple devices and have confirmed their age through Apple’s U.K. age-verification process.

North Carolina Weighing Tax on Brick-and-Mortar Sales of Adult Material

The North Carolina state legislature is considering a bill that would impose a new 10% tax on adult material sold by physical retailers in the state.

Lick Goods Expands Massage Oils Collection

Sexual wellness brand Lick Goods has introduced two new flavored massage oils.

Orion Expands 'Bad Kitty' Line

Orion Wholesale has added six new restraint sets to its Bad Kitty collection of fetish accessories.

BeYourLover Debuts 'Guitar' 2-in-1 Vibe

Pleasure brand BeYourLover has introduced its Guitar two-in-one vibrator and suction device.

Utah VPN Rule for Adult Sites Takes Effect This Week

A new law in Utah comes into force Wednesday, making adult websites liable if minors in the state circumvent geolocation efforts to bypass age verification.

Le Wand 'Dive' Featured in InStyle's List of Recommended Sex Toys

Le Wand’s Dive submersible wand vibrator is featured in “The 7 Best Sex Toys Sexperts Want You to Stash In Your Nightstand” roundup from InStyle.

Kiiroo Debuts 'PowerShot Case' Stroker Add-On

Kiiroo has introduced the PowerShot Case add-on for its Keon, PowerBlow, and PowerShot Strokers.

UPDATED: Court Approves Class Action in Labor Claims Against VMG

A U.S. district court has granted class certification in a civil lawsuit filed against Vixen Media Group (VMG) by retired performer Kenzie Anne, making it possible for additional performers to join in a class action against the company.

LELO Debuts 'Boomerang' Double-Sided Vibrator

LELO has introduced its new Boomerang, the pleasure brand's first double-sided vibrator.

Show More