The City's Motor Vehicle Dealers Ordinance set boundaries about how close used-car dealerships can be to residential areas in order to curb any detrimental effects on the surrounding residential communities, including nighttime glare and light pollution. The plaintiffs, owners of a used-car dealership, sued the City for denying their dealership's license, alleging an equal protection claim against the City for treating their dealership differently than others. The Court found there was not sufficient evidence for an equal protection claim and dismissed the case.
The City amended its Motor Vehicle Dealers Ordinance, which required used-car dealers to obtain a license for each location at which they sell cars and set boundaries about how close used-car dealerships can be to residential areas. The Ordinance stated in its preamble that its purpose was to curb any detrimental effects on the surrounding residential communities, including nighttime glare and light pollution. The City denied the plaintiffs a license under the amended Ordinance, the plaintiffs appealed, and the City denied that appeal. The plaintiffs sued the City, alleging that the denial of their license-application appeal violated the Due Process and Equal Protection Clauses of the United States and Texas Constitutions.