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

Hankey's Toys Introduces 'Big Pop Mushroom,' 'Xtra-Small Series IV' Dildos

Hankey's Toys has debuted its Big Pop Mushroom dildo and the new Xtra-Small Series IV line of dildos.

Brent Aldon, Erik Vasquez to Co-Host Retail Edition of 2026 XBIZ Honors at Avalon Hollywood

Aneros Director of Sales and Marketing Brent Aldon and Sliquid VP of Marketing Erik Vasquez will co-host the 2026 XBIZ Honors, set for Jan. 11 at Avalon Hollywood in Los Angeles.

Kiiroo Introduces New Argenta Stroker

Kiiroo has debuted the new Feel Argenta stroker sleeve from its FeelStar line.

Howl Launches New 'Ambassador' Referral Program

Wellness brand Howl has launched its Ambassador referral sales program.

Womanizer Unveils 'Next Duo' Vibrating Air Pulse Massager

Womanizer has introduced its Next Duo vibrating air pulse massager.

FSC: California's Device-Based AV Law Does Not Apply to Adult

The Free Speech Coalition (FSC) put out an advisory today explaining that California's new device-based age verification law does not apply to adult websites.

Orion Debuts 'Double Vibrator' From Couples Choice Line

Orion Wholesale has introduced the Double Vibrator from its Couples Choice line.

Orion Debuts 1st Christmas Collection From Cottelli Lingerie Line

Orion Wholesale has introduced the first Christmas Collection from its Cottelli Lingerie line.

Honey Play Box Introduces 'Vibrosa' Egg Vibe

Honey Play Box is debuting its new Vibrosa app-controlled egg vibrator.

ProDx Health Joins The Play as New Testing Partner, Launches 'Play Safe' Kit

ProDx Health has joined lifestyle organization Play LA as its new testing partner and marked the partnership with the launch of its Play Safe kit.

Show More