Yellowknife (Feb 13/04) - A Yellowknife bar owner may sue the city for lost revenue now that a bylaw charge has been dropped against him for smoking inside the premises.

"The city screwed up from day one," said Bob Ross, owner of Jose Locos. "It has opened up a whole new kettle of fish as far as I'm concerned."

Jose Locos was given a $1,000 ticket on Nov. 27, after bylaw officers found staff smoking inside the bar.

Ross argued the bar was closed and had no choice but to leave the doors open because of the fire code.

Tickets were withdrawn against two drinking establishments Wednesday, including Jose Locos and the Royal Canadian Legion, after City Hall decided the wording of the smoking bylaw -- as it stood before this week -- placed too high a burden on bar owners to stop patrons from smoking.

The city is considering dropping a third ticket against 40 Below Golf, which was charged Jan. 8.

City council passed five amendments to the bylaw on Monday.

The wording of the amendment that sprung the two drinking establishments used to read businesses, "shall ensure that people desist from smoking in the premises."

The wording was changed to, "shall not permit smoking in the premises."

Flush with victory, Ross feels like fighting back.

He said he may take the city to court for the declining sales his bar has endured since the smoking bylaw came into effect Oct. 1. He claims his losses are in excess of $100,000.

Lloyd Lush, president of the Royal Canadian Legion, said the bylaw was never well-thought out to begin with.

"They never had a case," said Lush. "Our lawyer said they couldn't make it stick."

After learning Jose Locos may sue the city, he said the Legion, "is still seeking legal advice."

Mayor Gord Van Tighem, who earlier this week told Yellowknifer that the bylaw amendments wouldn't hurt the cases against the bars, insisted they still could have won but decided to drop the charges after it appeared there might be a lengthy court battle involved.

"When you sit down and start talking about it, it starts to roll, and you say, 'okay, we could bring these things forward,' but why carry it forward and create problems for both sides, get lawyers, spend money and open an old wound," he said. "There was the potential that we could lose, so what does that do?"