A controversial adult retail shop owner in Johns Creek lost a round in federal court Monday.

Federal Judge Thomas Thrash Jr. ruled that after Fulton County denied a business license to the Love Shack in 2006, Love Shack owner John Cornetta should have appealed the denial with Fulton County administrators before heading to federal court. Because he didn't, the federal courts didn't have any reason to consider Cornetta's appeal, Thrash said.

Bob Andres/AJC (ENLARGE)

John Cornetta, owner of the Love Shack.

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Cornetta had hoped that a favorable ruling would require Fulton County to give him a business license retroactively. That would mean the Love Shack was lawfully in business before Johns Creek became a city Dec. 1, 2006. As a pre-existing business, the store could legally stay at its current location as an adult business.

Cornetta suffered an earlier setback Feb. 28 when Fulton County Superior Court Judge Ural Glanville ruled that the Love Shack was an adult business operating in a non-adult zoned area. He later found Cornetta in contempt for continuing to operate the Love Shack despite his court order. Glanville threatened Cornetta with jail time, a fine, and possibly closing the business if Cornetta continued.

Cornetta has since reduced his stock of adult material and has applied for a regular business license.