Judge Restrains Trade In Legal Action Against Wal-Mart

The Modesto Bee reports:

A state appellate court ruled today that an ordinance designed to keep discount "big box" businesses from operating grocery stores in Turlock is legal.

The Turlock City Council passed the ordinance with a 5-0 vote in 2004, arguing a "supercenter" the Wal-Mart corporation wanted to build in the city would cause substantial traffic congestion, and as a result, be detrimental to the environment. The proposed 225,000-square-foot supercenter on Countryside Drive east of Highway 99 would have included a large grocery section.

Wal-Mart sued in Stanislaus County Superior Court, saying it was being singled out as a retailer and that the ordinance violated state law by using zoning powers to regulate business competition.

Judge Roger Beauchesne disagreed, saying officials had "a legitimate concern for blight, traffic congestion and its resulting air pollution."

Wal-Mart appealed, and today's appellate court opinion affirmed Beauchesne's ruling.

In the opinion, justices said "a city may exercise its police power to control and organize development within its boundaries as a means of serving the general welfare," and that the "city made a legitimate policy choice."

According to that logic there's no limit on what the local government can do within its territorial boundaries in the name of "general welfare".No word yet on whether the Turlock City Council took campaign contributions from Target and K-Mart in the name of "general welfare".