TRANSPORTATION

under Atty. Ivy Fajardo

COURSE OUTLINE

PART ONE: PUBLIC UTILITIES

I. General Discussion

A. What is a public utility?

Munn v. Illinois, 94 U.S. 113 (1876)

Luzon Stevedoring Co., Inc. v. PSC, G.R. No. L-5458, 16 September 1953

ANTRAJENDA, John
BORLAGDAN, Venice

What is a public service?

Commonwealth Act No. 146 or the Public Service Act, as amended, Sec. 13(b)

Differentiate public utility from public service.

B. Legal Basis and Rationale for Regulation

Republic of the Philippines v. Meralco, 391 SCRA 700

CAADAN, Julie

C. Where does the Power to Regulate Public Utilities Reside?

Albano v. Reyes, 175 SCRA 264

KMU Labor Center v. Garcia, 239 SCRA 386

Batangas CATV v. Court of Appeals, G.R. No. 138819, 29 September 2004

Relate to Public Service Act 13 (a)

CARREON, Phoebe
CINCO, Lailani
COROS, Mara

What happened to the Public Service Commission?

See footnote #2 in KMU Labor Center v. Garcia, supra.

D. Not a Public Utility

Nebbia v. New York, 291 U.S. 502 (1934)

Tatad v. Garcia, 243 SCRA 436

The Iloilo Ice and Cold Storage Company v. Public Utility Board, G.R. No. L-1987, 2
March 1923 ESCUETA, Marivic

Teresa Electric & Power Co. v. PSC, 21 SCRA 198

JG Summit Holding, Inc. v. Court of Appeals, G.R. No. P124293, 24 September 2003

DIZON, Areanne

DUEAS, Jose

FLORANO, Rey

GABITO, Sherman

See Public Service Act, Sec. 14 for list of enterprises not covered by definition of public service

Nature of Concession Agreement

Freedom from Debt Coalition v. MWSS, G.R. No. 173044, 10 December 2007
GASPI, Joyce

II. Constitutional Provisions

See Article XII, Secs. 6, 11,17, 18,19 of the 1987 Constitution

a. Ownership

Gamboa v. Teves, G.R. No. 176579, June 28, 2011

In the Matter of the Corporate Rehabilitation of Bayan Telecommunication, Inc., G.R. Nos.
175418-20
MENDOZA, Roberique

Relate to Public Service Act, Sec. 16 (a) and Sec. 20 (i)

LOZANO, Hans

b. Exclusivity
NALA, Hazel

Metro Cebu Water v. Adala, G.R. No. 168914, July 4, 2007

Tawang Multi-Purpose Cooperative v. La Trinidad Water District, G.R. No. 166471, March 22,
2011
PASION, Alana

c. Subject to Amendment

RCPI v. NTC, 150 SCRA 450

TUPAZ, Edeza

d. Fixed-term

Francisco v. Toll Regulatory Board, G.R. No. 166910, October 19, 2010

UY, Sherwin

e. Take-over Power

f.

David v. Macapagal-Arroyo, G.R. No. 171396, May 3, 2006

Agan v. Piatco, G.R. No. 155001, January 21, 2004

VALONES, Ariel

ZAFE, Jenifer

Privatization of State-Operated Public Utilities

Kuwait Airways v. Philippine Airlines, G.R. No. 156087, May 8, 2009

SALVADOR, Vanessa

III. Regulation of Public Utilities

1. Authority to Operate

Albano v. Reyes, supra

PLDT vs. NTC, G.R. No. 88404, October 18, 1990

Francisco v. Toll Regulatory Board, supra

Napocor v. Court of Appeals, 279 SCRA 408

Oroport Cargo Handling v. Phividec Industrial Authority, G.R. No. 166785, July 28, 2008

Relate to Public Service Act, Section 16 (a), Sec. 18

GROSPE, Jason

REBATIS, Lovely

ANTRAJENDA, John

i. General Qualifications

Vda. De Lat v. PSC, G.R. No. L-34978, Feb. 26, 1988

KMU Labor Center v. Garcia, supra

BORLAGDAN, Venice

ii. Revocation or Cancellation

CAADAN, Julie

Divinagracia v. Consolidated Broadcasting System, Inc., G.R. No. 162272, April 7, 2009

Relate to Public Service Act, Section 16(m)

iii. CPC v. CPCN

See Public Service Act, Section 15

PAL v. CAB, 270 SCRA 528

CARREON, Phoebe

(see also R.A.s No. 9183 and 9517 in relation to case)

2. Rate Fixing
See Public Service Act, Sections 16(c) and 20(a)

Padua v. Ranada, G.R. No. 141949, October 14, 2002

Republic of the Philippines v. Meralco, supra

KMU Labor Center v. Garcia, supra

Francisco v. Toll Regulatory Board, supra

BF Homes v. Meralco, G.R. No. 171624, December 6, 2010

RAMIRO, CJ

RECIMO, Alexandra

3. Area of Operation

Napocor v. Court of Appeals, supra

4. Approval of Sale and Mortgages of Public Utility Assets or Equity

Public Service Act, Section 20(g), (h) and (i)
OLYMPIA, Kristoffer

Montoya v. Ignacio, G.R. No. L-5868, December 29, 1953

Perez v. Guiterrez, 53 SCRA 149

Zamboanga Transportation Co. v. Public Utility Commission, 50 Phil 237

CINCO, Lailani
COROS, Mara

Y Transit Co., Inc. v. NLRC, 229 SCRA 508

Francisco v. Toll Regulatory Board, supra

PLDT v. NTC, supra

MANTIZA, Vienna

DUEAS, Jose

5. Power to Set Fees and Other Charges

Republic v. International Communications Corporation, G.R. No. 141667, July 17, 2006

6. Other means of Regulation

See Public Service Act, Sections 16 and 20

PLDT v. NTC, supra

Henares v. LTFRB, G.R. No. 153290, October 23, 2006

ESCUETA, Marivic

Meralco v. Wilcon, G.R. No. 171534, June 30, 2008

FLORANO, Rey

BF Holmes v. Meralco, supra

Taxicab Operators of Metro Manila v. Board of Transportation, G.R. No. L-59235, September
30, 1932
GABITO, Sherman

7. Due Process Requirements

Patranco v. PSC, 70 Phil 221

KMU Labor Center v. Garcia, supra

GASPI, Mary Joyce

PART TWO: TRANSPORTATION LAW

I. GENERAL DISCUSSION
1. Definition
2. Relationship to a Public Utility
3. Nature of a Franchise

Raymundo v. Luneta Motor, 58 Phil. 889

Cogeo-Cubao Operator & Driver Association v. CA, G.R. No. 100727, 18 March 1992

GUIMAR, Ian

LOZANO, Hans

4. Scope of a Franchise

MENDOZA, Roberique

San Pablo v. Pantranco, 153 SCRA 199

5. Prior-operator Rule

NALA, Hazel

Batangas Transportation v. Orlanes, 52 Phil 455

6. Kabit System
PASION, Alana

Teja v. LAC, 143 SCRA 347

Santos v. Sibug, 104 SCRA 520

Lita Enterprises, Inc. v. Second Civil Cases Division, 129 SCRA 79

Lim v. CA, G.R. No. 125817, 16 January 2002

Baliwag Transit, Inc. v. Court of Appeals, G.R. No. L-57493, 7 January 1987

TUPAZ, Edeza
UY, Sherwin

VALONES, Ariel

ZAFE, Jenifer

7. Private nature; rights and obligations of parties inter se arising from transactions relating to
transportation
a. Absent a transportation contract
Lara v. Valencia, 104 Phil 65

SALVADOR, Vanessa

b. Liability of registered owner

PCI Leasing v. UCPB Insurance, 557 SCRA 141

GROSPE, Jason

09.09.16

II. Regulation of the Transportation Industry

1. The Department of Transportation and Communication, EO 125, Sec. 4 and 5 (as amended by
EO 125-A); See also EO 292, Book IV, Title XV
Mirasol v. DPWH, G.R. No. 158793, 8 June 2006

REBATIS, Lovely

a. Air
(i)

Civil Aviation Authority of the Philippines, Republic Act No. 9497 (2008), Sec. 4,
21, 24, 35

(ii)

Civil Aeronautics Board, RA 776, as amended, Secs. 5, 10 (A), (C); Secs 11, 12
PAL v. CAB, 23 SCRA 992

ANTRAJENDA, John

PAL v. CAB, supra

BORLAGDAN, Venice

Kuwait Airways v. PAL, supra

CAADAN, Julie

b. Land
(i)

Land Transportation Office, EO 125-A, Secs. 9, 11, 13(a); Administrative Code

1987, Title XV, Sec. 9 (1)

(ii)

Land Transportation Franchising and Regulatory Board, EO 202, Secs. 1, 2, 4, 5, 6,

7; Administrative Code of 1987, Title XV, Secs. 15-22
KMU Labor Center v. Garcia, supra

CARREON, Phoebe

c. Water
(i)

Maritime Industry Authority, EO 125, Sec. 14, as amended by EO-125-A, Sec.4

See also Republic Act No. 9295, Sections 10 and 11, in relation to Section 8

III. Common Carriers

(Unless otherwise indicated, reference is to the Civil Code)
a. In General
1. Definitions, essential elements; Art. 1732
U.S. v. Tan Piaco, 40 Phil 853

RAMIRO, CJ

Home Insurance Co. v. American Stearship, 23 SCRA 24

De Guzman v. CA, 168 SCRA 612

OLYMPIA, Kristoffer

RECIMO, Alexandra

Bascos v. CA, 221 SCRA 318

CINCO, Lailani

Planters Products Inc. v. Court of Appeals, 226 SCRA 476

Fabre v. Court of Appeals, 259 SCRA 426

COROS, Mara

MANTIZA, Vienna

First Philippine Industrial Corporation v. Court of Appeals, 300 SCRA 66

Loadstar Shipping Co., Inc. v. Court of Appeals, 315 SCRA 339

ESCUETA, Marivic

Asia Lighterage and Shipping v. Court of Appeals, 409 SCRA 340

Crisostomo v. Court of Appeals, 409 SCRA 528
Cruz v. Holdings, 622 SCRA 389

DUEAS, Jose

FLORANO, Rey

GABITO, Sherman

GASPI, Mary Joyce

2. Nature and Basis of Liability

Art. 1733
Cangco v. MRR, 38 Phil 767

GUIMAR, Ian

Isaac v. A.L. Ammen, 101 Phil 1046

Fores v. Miranda, 105 Phil 266
Phil. Rabbit v. IAC, 189 SCRA 159
LRTA v. Navidad, 397 SCRA 75

LOZANO, Hans
MENDOZA, Roberique
NALA, Hazel
PASION, Alana

3. Classes of Common Carriers

Arts. 1732, 1733, 1755

4. Law Applicable
Arts. 1766, 1753
National Development Co. v. Court of Appeals, 164 SCRA 593

TUPAZ, Edeza