INDIANAPOLIS -- A woman who runs a bondage and discipline business in her home filed a legal response Friday to a city lawsuit against the enterprise, arguing the city has no right to close it.

The city in November filed a lawsuit against Melyssa Donaghy, asking a court to close her home business in the 4100 block of Central Avenue, saying it violates zoning regulations.

The city argued that the business deals with "sexual torture" and masochistic activities. The lawsuit alleges that Donaghy, also known as "Miss Ann," operates a dungeon in the home's basement and charges men hundreds of dollars to dress like women and be subjected to bondage and acts of degradation.

Donaghy on Friday went to court to respond to the lawsuit. She said that her business is non-sexual and that she isn't violating zoning laws.

"People in my neighborhood know what I do. They obviously have no problem with it," Donaghy told reporters. "I continue to work. Many of the people in the neighborhood are my friends and regularly attend parties in my home. Until the mayor needed a photo op, there was really no issue."

In December, Mayor Bart Peterson held a news conference in which he outlined the city's attempts to close Donaghy's business and other establishments. Donaghy attended that event and tried to ask questions along with reporters, but Peterson refused to answer her, except to say that the press conference was for the news media.

Donaghy said last year that her business is educational and promotes "a non-promiscuous lifestyle and respect for women."

The city said its lawsuit was filed after an undercover Indianapolis police officer went to the home in September. He reported being forced to get down on his hands and knees and kiss Donaghy's boots and feet.

The officer also said he witnessed the use of spurs, whips, chains and clamping devices, and that he was subjected to degrading conversation.