Sam Katz (kaytz) came under fire for hosting a $3,000 Christmas party in December 2010 for city councillors and staff at an Asian restaurant he owned.
The owner of another restaurant, Joe Chan, asked the court to declare that Katz had broken the law and used his influence to have public money spent at his establishment.
The Manitoba Court of Appeal has upheld a lower court ruling that said Katz did not book the event at his establishment, and there is no evidence he pressured city staff to do so.
The three-judge appeal panel added, however, that their ruling is not a comment on the ethics of the case — only on the law.
The court also upheld the lower court's decision that requires Chan to pay Katz $10,000 in legal costs.