GR 43634; (August, 1937) (CRITIQUE)
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THE AI-ASSISTED CRITIQUE
The court correctly upheld the validity of Ordinance No. 1985 under the city’s delegated police power, finding it a reasonable regulation rather than an outright prohibition. The ordinance’s 500-meter distance requirement for gasoline stations is a permissible exercise of municipal authority to regulate public safety and urban planning, as explicitly authorized by the Revised Administrative Code. The court’s reasoning that the ordinance merely prescribes rules for installation, rather than banning the sale of gasoline, aligns with established principles that such spatial regulations are within a city’s discretion to mitigate fire hazards and traffic congestion, provided they are not arbitrary or discriminatory.

The appellants’ contention that the ordinance constitutes an unreasonable restraint of trade fails because the regulation is grounded in public welfare objectives, not economic protectionism. The court properly distinguished between a total ban and a conditional permit, noting that the ordinance allows multiple stations as long as they maintain the prescribed distance. This analysis avoids the pitfalls of Dartmouth College v. Woodward-style contract impairment arguments, as the permit was explicitly revocable and non-transferable, underscoring the city’s retained authority to enforce conditions tied to public safety, much like zoning laws upheld in Euclid v. Ambler Realty Co..

However, the court’s dismissal of the appellants’ due process claims may be overly simplistic. While the ordinance’s goals are legitimate, its application here—cancelling a permit for selling gasoline to the public when the original license was for private use—raises questions about procedural fairness. The mayor’s revocation after a show-cause hearing likely satisfies minimal due process, but the court’s failure to scrutinize whether the 500-meter rule was arbitrarily applied to the appellants’ specific location leaves unresolved whether the ordinance operates as a de facto monopoly grant for existing stations, potentially conflicting with broader legislative policies favoring competition under Act No. 3247 .