Charges against David Chen were dismissed on Friday, more than a year after the Toronto shopkeeper was charged with assaulting and forcibly confining a man who had shoplifted from his store.

A trial judge ruled on Friday that Chen's actions fell within the legal framework of a citizen's arrest despite coming about an hour after known shoplifter Anthony Bennett stole $60 worth of flowers from Chen's shop.

"We are very grateful this is finally over for Mr. Chen," lawyer Peter Lindsay told reporters. "At this point I am relieved it is over and I am relieved for the right result."

Chen became a local hero among shopkeepers in Toronto's Chinatown, who have complained about being the target of frequent thefts and feeling helpless to stop them.

Scores of those supporters gathered outside the courthouse on Friday morning, waving banners and proclaiming Chen's innocence.

After the verdict, Chen flashed a bashful smile as he exited Toronto's Old City Hall courthouse to a crush of supporters and media.

"I feel very, very happy," Chen said in halting English, before turning to MP Olivia Chow, acting as an interpreter, to express his gratitude for the support he received during his trial.

Chen has been in and out of court since May 2009, when he and two employees chased down and detained a shoplifter.

Anthony Bennett stole $60 worth of flowers from Chen's Dundas Street West store, then returned an hour later.

He pleaded guilty to the theft and, while testifying against Chen, said he was returning to the store to steal again.

The court heard Chen, 37, and two other men chased Bennett down, captured him, tied him up and held him in the back of a van until police arrived.

CTV News' John Vennavally-Rao was in the courtroom for the verdict on Friday. He said the judge decided he couldn't determine what exactly happened during the incident, leaving the door open for reasonable doubt.

The Crown had contended that Chen had used excessive force in catching the thief, and maintained that Bennett was not in the process of committing a crime when he was captured and thrown in the back of the van.

Crown attorney Eugene McDermott said citizen's arrests are done routinely in Toronto without the use of excessive force.

"I think when you have a set of circumstances as you do in this case it will draw attention," McDermott said.

According to the letter of the law, a citizen's arrest must be carried out at the time of the offence.

In his decision, the judge said Chen's citizen's arrest was reasonable.

The trial has stirred debate around Canada's citizen's arrest laws and what is considered legal detention. Two private members bills have been introduced in the House of Commons calling for the laws to be expanded.

Lindsay had said he would challenge the current law, but Friday's decision means it will not be necessary.

"In this particular case it was the same transaction, so the constitutional challenge is not necessary in this case," Lindsay said. ‘The change in the law is still justified and I am grateful that members of Parliament have taken that up."

On Thursday, Chen was forced to call police again, after a catching another shoplifter stealing from his shop.

"This is a serious problem for shopkeepers across Toronto, and across Canada," Lindsay said.

With reports from CTV News' John Vennavally-Rao and CTV Toronto's Michelle Dube