Pierce Oil Corp. v. City of Hope

Background

A business that sells oil, petroleum, and gasoline had storage tanks on railroad right-of-way inside the city after moving them at the city’s request. The city passed an ordinance forbidding petroleum and gasoline storage within 300 feet of any dwelling except for small quantities. The company sued, saying its tanks are safe, no alternative site exists, the ordinance is unnecessary and unreasonable, and enforcing it would take its property without fair process under the Constitution. The state supreme court sustained a demurrer to the complaint.

Reasoning

The Court addressed whether the ordinance could stand and whether the complaint’s general claims were enough to stop enforcement. The opinion says a State may prohibit dangerous oils and declare places where they are kept a criminal nuisance for public safety. The Court explained that businesses lawful now can become public hazards later, so broad local safety rules are permissible. The Court also found the complaint’s general assertions of safety and unreasonableness insufficient on demurrer, and it noted courts may take judicial notice of past disastrous explosions. The fact that the tanks were moved at the city’s request did not prevent the city from later passing safety laws.

Real world impact

This decision lets cities enforce strict rules on storing gasoline and oil near homes and limits challenges based on general assertions of safety. Oil sellers with tanks near residences may have to relocate, alter operations, or face criminal enforcement, and prior permission from a city does not guarantee immunity from later safety regulations.