PEABOD Y – Denial of a special permit by the Peabody City Council to extend the hours of operation of a Lynnfield Street donut shop and allow a fast food facility on the premises has sparked court litigation.Attorney John R. Keilty of Peabody, who is challenging the Peabody City Council’s decision on behalf of Lynnfield Street Donuts, Inc. and Linear Retail Peabody #1, LLC, brought the court action last Friday into Superior Court asking a judge to overturn the denial for a special permit, citing their decision was “unsupported by the evidence, is legally untenable, whimsical, arbitrary and capricious.”According to the court documents, Lynnfield Street Donuts, located at 79 Lynnfield St., Peabody, filed an application to allow retail sales of bakery goods, coffee and other non-alcoholic beverages within the premises formerly occupied by a video store and to amend the original opening hours of 8 a.m. to 5 a.m. and closing from 10 p.m. to 12 a.m.They also sought a special permit for a fast food facility within the application.In a failed 6-5 vote on July 14 the City Council denied the application and ordered that the hours of operation shall be 7:30 a.m. to 10 p.m.