Residents trying to stop a Birmingham pub staying open until midnight have lost their battle in a test case challenge of the new licensing laws.
Locals living near the Covered Wagon in Moseley claimed they have suffered from noise and light pollution since the site was granted a late licence.
They mounted a legal challenge against Birmingham-based pub giant Mitchell & Butlers claiming the original licence failed to consider controls to protect residents.
Yesterday, however, they lost their fight in the High Court when Deputy High Court Judge Kenneth Parker sided with the operator. Mr Parker ruled planning conditions could not be a consideration in the process of license variation.
But campaigners claimed the interests of big business had been put ahead of residents who would suffer a reduction in quality of life.
Mark Jackson, who lives opposite the pub on Yardley Wood Road, said: "It is a decision that very much advances M&B's interests at the expense of local people.
"The Licensing Act is supposed to establish a process where it allows residents' views to be expressed.
"Forty people objected to the extension. We feel the judge took the word of M&B and didn't listen to the complaints of the 40."
A spokeswoman for the pub chain said: "Mitchells & Butlers are pleased with the outcome of the judicial review at the High Court concerning the Covered Wagon, Birmingham."
The Covered Wagon was granted licence by Birmingham magistrates last September to open until midnight every day and until 1.30am on public holidays.
Householder Elsie Blackwood challenged the decision due to potential disturbance caused to neighbours.
In February the High Court granted her permission to appeal on grounds that magistrates may not have considered planning issues relating to floodlights.