811 Phil. 728; 114 OG No. 6, 903 (February 5, 2018)
PERALTA,** J.:
1. Inspection and determination of road worthiness of the authorized PUB unit of respondents-operators bringing the said buses to the Motor Vehicle Inspection Service (MVIS) of the Land Transportation Office, together with the authorized representatives of the Board;Furthermore, respondent and Cue were ordered to show cause why their respective CPCs should not be suspended, canceled or revoked due to the said accident.
2. Undergo Road Safety Seminar of respondents-operators' drivers and conductors to be conducted or scheduled by the Board and/or its authorized seminar provider;
3. Compulsory Drug Testing of the respondents-operators' drivers and conductors to be conducted by authorized/accredited agency of the Department of Health and the Land Transportation Office;
4. Submit the Certificates of Registration and latest LTO Official Receipts of the units, including the names of the respective drivers and conductors; and
5. Submit the video clippings of roadworthiness inspection, Road Safety Seminar and Drug Testing.[3]
WHEREFORE, premises considered and by virtue of Commonwealth Act 146 (otherwise known as "The Public Service Law"), as amended, and Executive Order No. 202, the Board hereby ORDERS that:Respondent then filed with the CA a petition for certiorari under Rule 65 of the Rules of Court, with prayer for the issuance of a preliminary mandatory injunction, assailing petitioner's above Decision.a. The Certificate of Public Convenience of respondent-operator NORBERTO M. CUE, SR. under Case No. 2007-0407, now under the beneficial ownership of respondent-operator G.V. FLORIDA TRANSPORT, INC., be CANCELLED and REVERTED to the State. Therefore, upon receipt of this Decision, respondent-operator G.V. FLORIDA TRANSPORT, INC. is hereby directed to CEASE and DESIST from operating the Certificate of Public Convenience under Case No. 2007-0407 involving ten (10) authorized units, to wit:The Information Systems Management Division (ISMD) is also directed to make proper recording of this Decision for future reference against subject vehicles and respondents-operators. During the period of suspension of its CPCs, respondent-operator G.V. FLORIDA TRANSPORT, INC. is allowed to confirm its authorized units subject to submission of all requirements for confirmation.
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b. Upon finality of this Decision, the above-mentioned for hire plates of respondent-operator NORBERTO M. CUE, SR. are hereby ordered DESTRUCTED (sic) and DESTROYED prior to their turn over to the Land Transportation Office (LTO).
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c. All existing Certificates of Public Convenience of respondent-operator G.V. FLORIDA TRANSPORT, INC. under case numbers listed under case numbers listed below are hereby SUSPENDED for a period of SIX (6) MONTHS commencing from March 11, 2014, which is the lapse of the 30-day preventive suspension order issued by this Board, to wit:
x x x x
[d.] During the period of suspension of its CPCs and as a condition for the lifting thereof, respondent-operator G.V. FLORIDA TRANSPORT, INC. must comply with the following:1. All its authorized drivers must secure the National Competency III issued by the Technical Education and Skills Development Authority (TESDA)[e.] The Show Cause Order issued against respondent-operator DAGUPAN BUS CO., INC. is hereby SET ASIDE.
2. All its conductors must secure Conductor's License from the Land Transportation Office (LTO);
3. Submit all its authorized units that have not undergone inspection and determination of roadworthiness to the Motor Vehicle Inspection Service of the LTO, together with the authorized representatives of the Board; and
4. Compulsory Drug Testing of all its authorized drivers and conductors to be conducted by the authorized accredited agency of the Department of Health and the Land Transportation Office at least thirty (30) days before the expiration of its suspension.
The Law Enforcement Unit of this Board, the Land Transportation Office (LTO), the Metro Manila Development Authority (MMDA), the Philippine National Police-Highway Patrol Group (PNP-HPG), and other authorized traffic enforcement agencies are hereby ordered to APPREHEND and IMPOUND the said vehicles, if found operating.
SO ORDERED.[6]
WHEREFORE, the instant petition is PARTIALLY GRANTED. The Decision dated March 14, 2014 of the Land Transportation Franchising and Regulatory Board is MODIFIED as follows:Hence, the present petition grounded on a lone issue, to wit:1. The Order canceling and reverting to the State of the Certificate of Public Convenience of operator Cue under Case No. 2007-0407, under the beneficial ownership of petitioner G.V. Florida Transport, Inc. is AFFIRMED;Accordingly, petitioner G.V. Florida Transport, Inc. prayer for mandatory injunctive relief is hereby GRANTED. The Land Transportation and Franchising Regulatory Board is hereby ordered to immediately LIFT the order of suspension and RETURN or CAUSE the RETURN of the confiscated license plates of petitioner G.V. Florida Transport, Inc.'s 186 authorized bus units under its 28 Certificates of Public Convenience without need of further order from this Court. Said Office is further DIRECTED to submit its Compliance within five (5) days from receipt thereof.
2. The penalty of suspension for a period of six (6) months against all existing 28 Certificates of Public Convenience of petitioner G.V. Florida, Transport, Inc., is REVERSED and SET ASIDE;
3. The condition set forth in the Decision for the lifting of the penalty of suspension is DELETED; and
4. The order to apprehend and impound petitioner G.V. Florida Transport, Inc.'s 186 authorized bus units under the 28 CPCs if found operating is RECALLED
SO ORDERED.[7]
DOES THE LTFRB HAVE THE POWER TO SUSPEND THE FLEET OF A PUBLIC UTILITY THAT VIOLATES THE LAW, TO THE DAMAGE OF THE PUBLIC?[8]The main issue brought before this Court is whether or not petitioner is justified in suspending respondent's 28 CPCs for a period of six (6) months. In other words, is the suspension within the powers of the LTFRB to impose and is it reasonable?
Section 16. Proceedings of the Commission, upon notice and hearing. - The Commission shall have power, upon proper notice and hearing in accordance with the rules and provisions of this Act, subject to the limitations and exceptions mentioned and saving provisions to the contrary:Also, Section 5(b) of E.O. 202 states:x x x x
(n) To suspend or revoke any certificate issued under the provisions of this Act whenever the holder thereof has violated or willfully and contumaciously refused to comply with any order rule or regulation of the Commission or any provision of this Act: Provided, That the Commission, for good cause, may prior to the hearing suspend for a period not to exceed thirty days any certificate or the exercise of any right or authority issued or granted under this Act by order of the Commission, whenever such step shall in the judgment of the Commission be necessary to avoid serious and irreparable damage or inconvenience to the public or to private interests.
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Sec. 5. Powers and Functions of the Land Transportation Franchising and Regulatory Board. The Board shall have the following powers and functions:In the present case, respondent is guilty of several violations of the law, to wit: lack of petitioner's approval of the sale and transfer of the CPC which respondent bought from Cue; operating the ill-fated bus under its name when the same is registered under the name of Dagupan Bus Co., Inc.; attaching a vehicle license plate to the ill-fated bus when such plate belongs to a different bus owned by Cue; and operating the subject bus under the authority of a different CPC. What makes matters worse is that respondent knowingly and blatantly committed these violations. How then can respondent claim good faith under these circumstances?x x x x
b. To issue, amend, revise, suspend or cancel Certificates of Public Convenience or permits authorizing the operation of public land transportation services provided by motorized vehicles, and to prescribe the appropriate terms and conditions therefor;
x x x x
x x x xRespondent likewise contends that, in suspending its 28 CPCs, the LTFRB acted in reckless disregard of the property rights of respondent as a franchise holder, considering that it has put in substantial investments amounting to hundreds of millions in running its operations. In this regard, the Court's ruling in the case of Luque v. Villegas[15] is apropos:
It should be observed that Section 16(n) of Commonwealth Act No. 146, as amended, confers upon the Commission ample power and discretion to order the cancellation and revocation of any certificate of public convenience issued to an operator who has violated, or has willfully and contumaciously refused to comply with, any order, rule or regulation of the Commission or any provision of law. What matters is that there is evidence to support the action of the Commission. In the instant case, as shown by the evidence, the contumacious refusal of the petitioner since 1954 to comply with the directives, rules and regulations of the Commission, its violation of the conditions of its certificate and its incapability to comply with its commitment as shown by its inadequate service, were the circumstances that warranted the action of the Commission in not merely imposing a fine but in revoking altogether petitioner's certificate. To allow petitioner to continue its operation would be to sacrifice public interest and convenience in favor of private interest.A grant of a certificate of public convenience confers no property rights but is a mere license or privilege, and such privilege is forfeited when the grantee fails to comply with his commitments behind which lies the paramount interest of the public, for public necessity cannot be made to wait, nor sacrificed for private convenience. (Collector of Internal Revenue v. Estate of F. P. Buan, et al., L-11438 and Santiago Sambrano, et al. v. PSC, et al., L-11439 & L-11542-46, July 31, 1958)
(T)he Public Service Commission, ... has the power to specify and define the terms and conditions upon which the public utility shall be operated, and to make reasonable rules and regulations for its operation and the compensation which the utility shall receive for its services to the public, and for any failure to comply with such rules and regulations or the violation of any of the terms and conditions for which the license was granted, the Commission has ample power to enforce the provisions of the license or even to revoke it, for any failure or neglect to comply with any of its terms and provisions. x x x
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x x x xNeither is the Court convinced by respondent's contention that the authority given to petitioner, under the abovequoted Section 16(n) of the Public Service Act does not mean that petitioner is given the power to suspend the entire operations of a transport company. Respondent must be reminded that, as quoted above, the law clearly states that petitioner has the power "[t]o suspend or revoke any certificate issued under the provisions of [the Public Service Act] whenever the holder thereof has violated or willfully and contumaciously refused to comply with any order rule or regulation of the Commission or any provision of this Act x x x" This Court has held that when the context so indicates, the word "any" may be construed to mean, and indeed it has been frequently used in its enlarged and plural sense, as meaning "all," "all or every," "each," "each one of all," "every" without limitation; indefinite number or quantity, an indeterminate unit or number of units out of many or all, one or more as the case may be, several, some.[17] Thus, in the same vein, the Merriam-Webster Dictionary defines the word "any" as "one, some, or all indiscriminately of whatever quantity"; "used to indicate a maximum or whole"; "unmeasured or unlimited in amount, number, or extent."[18] Hence, under the above definitions, petitioner undoubtedly wields authority, under the law, to suspend not only one but all of respondent's CPCs if warranted, which is proven to be the case here.
Contending that they possess valid and subsisting certificates of public convenience, the petitioning public services aver that they acquired a vested right to operate their public utility vehicles to and from Manila as appearing in their said respective certificates of public convenience.
Petitioner's argument pales on the face of the fact that the very nature of a certificate of public convenience is at cross purposes with the concept of vested rights. To this day, the accepted view, at least insofar as the State is concerned, is that "a certificate of public convenience constitutes neither a franchise nor a contract, confers no property right, and is a mere license or privilege." The holder of such certificate does not acquire a property right in the route covered thereby. Nor does it confer upon the holder any proprietary right or interest of franchise in the public highways. Revocation of this certificate deprives him of no vested right. Little reflection is necessary to show that the certificate of public convenience is granted with so many strings attached. New and additional burdens, alteration of the certificate, and even revocation or annulment thereof is reserved to the State.
We need but add that the Public Service Commission, a government agency vested by law with "jurisdiction, supervision, and control over all public services and their franchises, equipment, and other properties" is empowered, upon proper notice and hearing, amongst others: (1) "[t]o amend, modify or revoke at any time a certificate issued under the provisions of this Act [Commonwealth Act 146, as amended], whenever the facts and circumstances on the strength of which said certificate was issued have been misrepresented or materially changed"; and (2) "[t]o suspend or revoke any certificate issued under the provisions of this Act whenever the holder thereof has violated or wilfully and contumaciously refused to comply with any order, rule or regulation of the Commission or any provision of this Act: Provided, That the Commission, for good cause, may prior to the hearing suspend for a period not to exceed thirty days any certificate or the exercise of any right or authority issued or granted under this Act by order of the Commission, whenever such step shall in the judgment of the Commission be necessary to avoid serious and irreparable damage or inconvenience to the public or to private interests."
Jurisprudence echoes the rule that the Commission is authorized to make reasonable rules and regulations for the operation of public services and to enforce them. In reality, all certificates of public convenience issued are subject to the condition that all public services "shall observe and comply [with] ... all the rules and regulations of the Commission relative to" the service. To further emphasize the control imposed on public services, before any public service can "adopt, maintain, or apply practices or measures, rules, or regulations to which the public shall be subject in its relation with the public service," the Commission's approval must first be had.
And more. Public services must also reckon with provincial resolutions and municipal ordinances relating to the operation of public utilities within the province or municipality concerned. The Commission can require compliance with these provincial resolutions or municipal ordinances.
Illustrative of the lack of "absolute, complete, and unconditional" right on the part of public services to operate because of the delimitations and restrictions which circumscribe the privilege afforded a certificate of public convenience is the following from the early (March 31, 1915) decision of this Court in Fisher vs. Yangco Steamship Company, 31 Phil. 1, 18-19:Common carriers exercise a sort of public office, and have duties to perform in which the public is interested. Their business is, therefore, affected with a public interest, and is subject of public regulation. (New Jersey Steam Nav. Co. vs. Merchants Banks, 6 How. 344, 382; Munn vs. Illinois, 94 U.S. 113, 130.) Indeed, this right of regulation is so far beyond question that it is well settled that the power of the state to exercise legislative control over railroad companies and other carriers 'in all respects necessary to protect the public against danger, injustice and oppression' may be exercised through boards of commissioners. (New York, etc. R. Co. vs. Bristol, 151 U.S. 556, 571; Connecticut, etc. R. Co. vs. Woodruff, 153 U.S. 689.).The foregoing, without more, rejects the vested rights theory espoused by petitioning bus operators.
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.... The right to enter the public employment as a common carrier and to offer one's services to the public for hire does not carry with it the right to conduct that business as one pleases, without regard to the interests of the public and free from such reasonable and just regulations as may be prescribed for the protection of the public from the reckless or careless indifference of the carrier as to the public welfare and for the prevention of unjust and unreasonable discrimination of any kind whatsoever in the performance of the carrier's duties as a servant of the public.
Business of certain kinds, including the business of a common carrier, holds such a peculiar relation to the public interest that there is superinduced upon it the right of public regulation. (Budd vs. New York, 143 U.S. 517, 533.) When private property is "affected with a public interest it ceases to be juris privati only." Property becomes clothed with a public interest when used in a manner to make it of public consequence and affect the community at large. "When, therefore, one devotes his property to a use in which the public has an interest, he, in effect, grants to the public an interest in that use, and must submit to be controlled by the public for the common good, to the extent of the interest he has thus created. He may withdraw his grant by discontinuing the use, but so long as he maintains the use he must submit to control." (Munn vs. Illinois, 94 U.S. 113; Georgia R. & Bkg. Co. vs. Smith, 128 U.S. 174; Budd vs. New York, 143 U.S. 517; Louisville, etc. Ry. Co. vs. Kentucky, 161 U.S. 677, 695.).
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