The Home Office has won its appeal against the closure of the Bell Hotel for asylum seekers.
Last week, the High Court injunction ordered asylum seekers to be cleared from the hotel in Epping in Essex.
However, the Court of Appeal has now ruled that asylum seekers can stay there past September 12.
The injunction from last week has been set aside, avoiding a precedent for other councils to appeal against asylum hotels in their areas.
Government lawyers argued that the European Convention on Human Rights superseded Epping residents’ wishes.
Lord Justice Bean said that Mr Justice Eyre’s initial injunction had errors, saying: “The judge’s approach ignores the obvious consequence that the closure of one site means capacity needs to be identified elsewhere in the system.”
Justice Bean said that the injunction could “incentivise” other councils to try and close hotels housing asylum seekers.
“The potential cumulative impact of such ad-hoc applications was a material consideration… that was not considered by the judge.”
“If an outbreak of protests enhances the case for a planning injunction this risks an impetus for further protests some of which may be disorderly surrounding asylum accommodation,” he added.
“At its worst, if even unlawful protests are to be treated, there is a risk of further lawlessness.”