California Supreme Court Clarifies Constitutionality of Zoning Impacts on Economic Competition

In Hernandez v. City of Hanford, the California Supreme Court reversed the appellate court’s decision, and held that the City of Hanford’s zoning ordinance prohibiting furniture sales in the City’s Planned Commercial (PC) district, with a limited exception for large department stores, did not violate the State or Federal Equal Protection Clause. The Court clarified language in a line of cases beginning with Van Sicklen v. Browne (1971) 15 Cal.App.3d 122, which addressed the impacts of local zoning regulation on economic competition. The Court agreed with the appellate court that a general prohibition on furniture sales within a particular zoning district was not unconstitutional. The Court reversed the appellate decision, however, with respect to the ordinance's limited exception, allowing for furniture sales by large department stores. The Court concluded that the exception was rationally related to a legitimate public purpose that had been overlooked by the appellate court: the objective of attracting and retaining large department stores in the City's PC district. Therefore, the City's disparate treatment of department stores and other retail establishments within the PC district was not unconstitutional.