Find Court Cases > Pennell v. San Jose

Pennell v. San Jose

Case Date: 11/10/1987
Docket No: none

Facts of the Case 

The City of San Jose enacted a rent-control ordinance in 1979 in an attempt to alleviate the problem of skyrocketing rent prices due to the growing shortage of and the increasing demand for housing. Part of the ordinance allowed a Mediating Hearing Officer to consider as one factor "hardship to a tenant" when evaluating rent increases imposed by landlords.

Question 

Did the ordinance violate the Fourteenth Amendment's Due Process Clause?

Argument Pennell v. San Jose - Oral ArgumentFull Transcript Text  Download MP3Pennell v. San Jose - Opinion AnnouncementFull Transcript Text  Download MP3 Conclusion  Decision: 6 votes for San Jose, 2 vote(s) against Legal provision: Article 3, Section 2, Paragraph 1: Case or Controversy Requirement

No. The Court held that the ordinance was rationally crafted to protect the financial investments of landlords while simultaneously preventing tenants from becoming victims of burdensome rent increases. The City argued the ordinance satisfied a need. This view was uncontested and, according to Justice Rehnquist, represented a "legitimate and rational" means to protect "consumer welfare."