- Associated Press - Thursday, October 9, 2014

CHATTANOOGA, Tenn. (AP) - The Tennessee Court of Appeals has ruled a Chattanooga ordinance that caused a restaurant to lose its beer permit is constitutionally invalid.

According to the court, the City Cafe Diner served food 24 hours a day and sold beer during the hours in which those sales were allowed.

In July 2006, the Chattanooga Beer Board updated its rules to require businesses with beer permits to close during the hours in which they were not allowed to sell beer. The restaurant continued to operate 24 hours a day, and in 2011, the beer board received a complaint.

The restaurant surrendered its beer license in July 2011 and filed a lawsuit challenging the rule the next month.

Hamilton County Chancery Court ruled for the city in October 2013. On Wednesday, the appeals court overturned that decision.

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