Pasay Transportation Co. v. Public Service Commission

G.R. No. 40659 · 1933-12-22 · J. HULL, J.: · Primary: Commercial; Secondary: Remedial
REITERATION

Facts

The Antecedents: Petitioner, Pasay Transportation Co., Inc., operates an autobus line within Manila. Respondent Rafael Perez Samanillo, a real estate developer, complained to the Governor-General that the petitioner's bus operations were negatively impacting the rental value of his properties due to dust, noise, and street congestion. The Governor-General referred this complaint to the Public Service Commission. Procedural History: The Public Service Commission, after receiving Samanillo's complaint and conducting a hearing and ocular inspection, modified the petitioner's bus route to accommodate Samanillo's concerns. This action followed a previous instance where the petitioner's route was altered, and the Commission had stated it would not be changed again without the petitioner's consent. The Petition: Petitioner seeks a writ of certiorari, arguing that the Public Service Commission exceeded its jurisdiction and illegally infringed upon its rights by altering the bus route based on a complaint from a property owner, not a direct user of the utility. Petitioner contends that the Commission is bound by its prior statement not to change the route without consent and that the complaint was outside the Commission's purview, citing a previous case. The petitioner also argues that the Commission cannot arbitrarily change its own prior orders.

Issue(s)

Whether the Public Service Commission acted beyond its jurisdiction in modifying the route of the petitioner's autobus line upon a complaint from a property owner. Whether a previous statement by the Public Service Commission, indicating that a route would not be changed without the operator's consent, is binding on the Commission.

Ruling

The petition for certiorari is denied. The Public Service Commission acted within its jurisdiction and did not arbitrarily infringe upon the rights of the petitioner.

Ratio Decidendi

On Issue 1: The Court held that the Public Service Commission did not act beyond its jurisdiction. While the City of Manila has control over its streets, the petitioner's rights to use those streets stem from the franchise granted by the PSC. The PSC, under its creating Act, has the authority to modify any order it makes. Furthermore, the PSC is not limited to considering only the public utility and its patrons; it must also consider the rights and interests of the general public, including inhabitants affected by the operation of public utilities. The PSC's consideration of reasons that might appeal to a municipality, such as noise and congestion in a residential district, falls within its mandate to act for the public good in general, representing the State. On Issue 2: The Court ruled that a previous statement by the Public Service Commission that it would not change a route without the operator's consent is not binding on the Commission in the future. The Court emphasized that no entity has the right to prevent the exercise of the legal powers of the Commission by its successors. The law expressly grants the Public Service Commission the right to modify its orders, and this power cannot be circumvented by prior pronouncements. The Commission's authority to modify its orders is a continuing one, essential for adapting to public needs and ensuring the public good.

Main Doctrine

The Public Service Commission, under the Act creating it, possesses the inherent power to rehear, extend, revoke, or modify any order made by it. This power is not limited by previous statements or orders, as the law expressly grants the Commission the right to modify its decisions to serve the public good and adapt to changing circumstances.

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