Appeals court upholds Fla. city zoning challenge

In two cases before the 11th U.S. Circuit Court of Appeals, a three-judge panel ruled Monday against the Florida Keys town's "formula restaurant" prohibition and restrictions on size of "formula retail" establishments.

The court said the zoning code's effort to safeguard small, locally owned businesses failed to provide a "legitimate local purpose" that justifies favoring in-state interests over out-of-state interests.

The two cases involved lawsuits by separate Islamorada business owners who wanted to sell their stores, one to make way for a Walgreen's and the other for a Starbuck's.