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7/21/2019 Raymundo vs Luneta Motor 58 Phil 889
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Raymundo vs Luneta Motor 58 Phil 889
F: Nicanor de Guzman signing as Guzco Transit urchased truc!s "rom
Luneta Motor and e#ecuted PNs guaranteed $y a chattel mortgage on
several truc!s% Failing to ay the PNs& a suit "or collection 'as (led% ) 'rit
o" attachment 'as issued and garnishment 'as served on the P*+
attaching the right& title& and articiation o" Guzco Transit in the +P+
covering the $us transortation lines $et'een Manila and Rizal% The +F,
ordered the selling o" these certi(cates in a u$lic $idding in 'hich LunetaMotor 'as the highest $idder% Nine days a"ter the certi(cates 'ere
attached& these 'ere sold to Raymundo -including certi(cate No% .595/
'hich 'as not included in the sale to Luneta Motor +o%0% The aroval o"
the sale 'as sought "rom the P*+% The P*+ aroved the sale in the u$lic
$idding and disaroved the sale to Raymundo e#cet 'ith resect to
+erti(cate No% .595/ 'hich Raymundo could aly "or its aroval%
,ssue : 1hich o" the t'o sales should revail2 u$lic auction $y virtue o" an
attachment vs voluntary sale 3eld : *ale to Luneta Motor +o% in a u$lic
auction The Pu$lic *ervice La' authorizes certi(cates o" u$lic
convenience to $e secured $y u$lic service oerators "rom the P*+% )
+P+ grants a right in the nature o" a limited "ranchise% The +ode o" +ivilProcedure does not e#clude "ranchises or certi(cates "rom the 'ord
4roerty%4 The test $y 'hich to determine 1N a roerty can $e
attached and sold uon e#ecution is 'hether the 6udgment de$tor has
such a $ene(cial interest therein that he can sell or other'ise disose o" it
"or value% The Pu$lic *ervice La' ermits the P*+ to arove the sale&
alienation& mortgaging& encum$ering or leasing o" roerty& "ranchises&
rivileges& or rights or any art thereo"% ," the holder o" a certi(cate can
voluntary sell it& there is no reason 'hy the same cannot $e sold
involuntarily ursuant to court rocess% +P+s have considera$le material
value% They are valua$le assets% They are su$6ect to $eing sold "or
consideration as much as any other roerty% They are even more valua$le
than ordinary roerties& ta!ing into consideration that they are not
granted to every one 'ho alies "or them $ut only to those 'ho
underta!e to "urnish satis"actory and convenient service to the u$lic%
Though intangi$le& they are o" value and are considered roerties 'hich
can $e seized through legal rocess%%
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7atangas Transortation +o% vs rlanes 5. Phil 55
F: rlanes sought to have a +P+ to oerate a line o" auto truc!s 'ith (#ed
times o" dearture $et'een Taal and 7antilan& 'ith the right to receive
assengers and "reight "rom intermediate oints% The evidence is
conclusive that at the time o" his alication& rlanes 'as an irregular
oerator $et'een 7antilan and Taal& and that 7T+ 'as a regular oerator
$et'een 7atangas and Rosario% rlanes sought to have his irregular
oeration changed into a regular oeration& and to set aside and nulli"y the
rohi$ition against him in his +P+ that he shall not have or receive any
assengers or "reight at any o" the oints served $y the 7T+ 'hich holds a
rior license "rom the P*+% 3is etition is $ased on the "act that to comly
'ith the gro'ing demands o" the u$lic& the 7T+ alied "or a ermit to
increase the no% o" tri hours at and $et'een the same laces and "or an
order that all irregular oerators $e rohi$ited "rom oerating unless they
should o$serve an interval o" . hours $e"ore or one hour a"ter the regular
hours o" the 7T+% The P*+ granted the etition o" rlanes%
,ssue : 1N a +P+ should $e issued to a second oerator in a (eld 'here&and in cometition 'ith& a (rst oerator 'ho is already oerating a
sucient& adeuate and satis"actory service%
3eld : N% ;ecision o" P*+ is revo!ed% )n auto$us line is a u$lic utility&
and as such& is a common carrier and an imt% "actor in the $usiness a<airs
o" the community% The P*+ has the o'er to seci"y and de(ne the terms
and conditions uon 'hich any u$lic utility shall oerate and to ma!e
reasona$le rules and regulations "or its oeration& and to (# the
comensation that it shall receive "or its service to the u$lic& and "or good
cause may susend or even revo!e a license granted% ,t is not the olicy o"
the la' "or the P*+ to issue a +P+ to a second oerator to cover the same
(eld and in cometition 'ith a (rst oerator 'ho is rendering sucient&adeuate and satis"actory service& and 'ho in all things and resects is
comlying 'ith the rules and regulations o" the P*+% The o'er o" the P*+
to issue a +P+ is "ounded on the condition recedent that a"ter a "ull
hearing and investigation& it shall (nd as a "act that the roosed oeration
is "or the convenience o" the u$lic% *o long as the (rst oerator !ees and
er"orms his terms and conditions o" its license and comlies 'ith the
reasona$le demands o" the u$lic& it has more or less o" a vested and
re"erential right over another 'ho see!s to acuire a later license to
oerate over the same route% To carry out the urose and intent "or 'hich
the P*+ 'as created& the la' contemlates that the (rst license 'ill $e
rotected in his investment and 'ill not $e su$6ected to ruinous
cometition% The rimary urose o" the P*+ is to secure adeuate&
sustained service "or the u$lic at the least ossi$le cost and to rotect
and conserve investments 'hich have already $een made "or that
urose% ) +P+N "or the oeration o" an auto truc! line in occuied
territory should not $e granted 'here there is no comlaint as to e#isting
rates and the co% in the (eld is rendering adeuate service% ,t is the duty
o" the P*+ to rotect rather than to destroy the investment o" a u$lic
utility% The olicy o" regulation uon 'hich the resent u$lic utility
commission lan is $ased and 'hich tends to do a'ay 'ith cometition
among u$lic utilities as they are natural monoolies& is at once the reasonthat the regulation o" an e#isting system o" transortation& 'hich is
roerly serving a given (eld& or may $e reuired to do so& is to $e
re"erred to cometition among several indeendent systems% 1hile
reuiring a roer service "rom a single system "or a territory in
consideration "or rotecting it as a monooly "or all the service reuired
and in conserving its resources& no economic 'aste results and service
may $e "urnished at a minimum cost%
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*an Pa$lo vs Pantranco *outh =#ress& ,nc% /5> *+R) /99
F: Pantranco oerates assenger $uses "rom Metro Manila to 7icol and
=astern *amar% ,t 'rote to the Maritime ,ndustry )uthority -M)R,N)0
reuesting authority to lease?urchase M@ 7lac! ;ou$le to $e used in
oerating a "erry$oat service "rom Matnog& *orsogon and )llen& *amar that
'ill rovide service to co% $uses and "reight truc!s that have to cross the
7ernardo *trait% M)R,N) denied the etition on the ground that the
MatnogA )llen run is adeuately serviced $y the +ardinal *hiing +or%
and =itacio *an Pa$lo and that mar!et conditions cannot suort theentry o" additional tonnage% Pantranco acuired the vessel% ,t then alied
to 7T claiming that it can oerate a "erry service in connection 'ith its
"ranchise "or $us oeration in the high'ay "rom Pasay +ity to Taclo$an +ity
"or the urose o" continuing the high'ay& 'hich is interruted $y a small
$ody o" 'ater& and that the roosed "erry oeration is merely a necessary
and incidental service to its main service and o$ligation o" trans"erring
assengers "rom Pasay +ity to Taclo$an +ity% )ccdg% to it& there is no need
to o$tain a searate +P+ to oerate a "erry service to cater e#clusively to
its assenger $uses and "erry truc!s% Pantranco $egan oerating its "erry
service% The 7T held that the "erry$oat service is art o" PantrancoBs +P+
and amended PantrancoBs +P+ to rovide so% The t'o other "erry $oatservices (led motions "or reconsideration%
,ssue : 1N the sea can $e considered as a continuation o" the high'ay%
1N a land transo co% can $e authorized to oerate a "erry service or
coast'ise or interisland shiing service along its authorized route as an
incident to its "ranchise 'ithout the need o" (ling a searate alication "or
the same% 3eld : The 'ater transort service $et'een Matnog and )llen is
not a "erry$oat service $ut a coast'ise or interisland shiing service%
7e"ore rivate resondent may $e issued a "ranchise or +P+ "or the
oeration o" the said service as a common carrier& it must comly 'ith the
usual rets% o" (ling an alication& ayment o" the "ees& u$lication&
adducing evidence at a hearing and a<ording the oositors theoortunity to $e heard% +onsidering the environmental circumstances o"
the case& the conveyance o" assengers "rom Matnog to )llen is not a
"erry$oat service $ut a coast'ise or interisland shiing service% Cnder no
circumstances can the sea $et'een Matnog and )llen $e considered a
continuation o" the high'ay% 1hile a "erry$oat service has $een
considered as a continuation o" the high'ay 'hen crossing rivers or even
la!es& 'hich are small $ody o" 'aters searating the land& ho'ever& 'hen
as in this case the t'o terminals are searated $y an oen sea& it cannot
$e considered a continuation o" the high'ay% Pantranco must secure a
searate +P+ "or the oeration o" an interisland or coast'ise shiingservice% ,ts +P+ cannot $e merely amended to include this 'ater service
under the guise that it is a mere rivate "erry service% Pantranco does not
deny that it charges its assengers searately "rom the charges "or the $us
tris and issues searate tic!ets 'henever they $oard the M@ 7lac!
;ou$le% ,t cannot retend that it issued tic!ets as a rivate carrier and not
as a common carrier% ,t in "act accets 'al! in assengers during the tris%
,t cannot claim that it is $oth a rivate carrier and a common carrier at the
same time%
,n the case o" Davellana vs P*+& the +ourt di<erentiated $et'een "erry
service and interisland or coast'ide service% Ferry means service either $y
$arges or ra"ts& even $y motor or steam vessels& $et'een the $an!s o" ariver or stream to continue the high'ay 'hich is interruted $y a $ody o"
'ater& or in some cases& to connect t'o oints on oosite shores o" an
arm o" the sea such as a $ay or la!e 'hich does not involve too great a
distance or too long a time to navigate% 7ut 'here the line or service
involves crossing a $ody o" 'ater 'hich is 'ide and dangerous 'ith $ig
'aves& then such line or service $elongs roerly to interisland or
coast'ide trade% >% Private nature: rights and o$ligations o" arties inter
se arising "rom transactions relating to transortation
-a0 a$sent a transortation
contract
-$0 arising "rom a
transortation contract
-i0 contract o" transortation& de(ned A one 'here$y a certain erson or
association o" ersons o$ligate themselves to transort ersons& things or
ne's "rom one lace to another "or a (#ed rice
-ii0 contract o"
transortation& elements
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-$0 The +erti(cate o" Pu$lic +onvenience -+P+0& the +erti(cate o" Pu$lic
+onvenience and Necessity -+P+N0& and the Prior erator Rule
;i<erence $et'een +P+ and +P+N : ) +P+N is issued $y the P*+ to a
u$lic service to 'hich any olitical su$division has granted a "ranchise
under )ct EE a"ter the P*+ has aroved the same under *ection /E-$0% )
+P+ is any authorization to oerate a u$lic service issued $y the P*+% )
+P+ is an authorization issued $y the +ommission "or the oeration o"
u$lic services "or 'hich no "ranchise& either municial or legislative& is
reuired $y la' -e%g% autoAtruc!s and motor vehicles0% ) +P+N is an
authorization issued $y the P*+ "or the oeration o" u$lic services "or
'hich a "ranchise is reuired $y la' -e%g% electric& telehone services0%
Nature o" certi(cate : ,t constitutes neither a "ranchise nor a contract&con"ers no roerty rights and is a mere license or rivilege& and such
rivilege is "or"eited 'hen the grantee "ails to comly 'ith his
commitments $ehind 'hich lies the aramount interest o" the u$lic& "or
u$lic necessity cannot $e made to 'ait& nor sacri(ced "or rivate
convenience% 3o'ever& certi(cates reresent roerty rights to the e#tent
that i" the rights 'hich any u$lic utility is e#ercising ursuant to la'"ul
orders o" the P*+ has $een invaded $y another u$lic utility& in aroriate
cases actions may $e maintained $y the comlainant u$lic utility% 'ners
o" u$lic utilities have the right to maintain aroriate actions against
other u$lic utilities not authorized to oerate in cometition 'ith the
comlainant% +erti(cates are considered as roerty as used in +ivil
Procedure as they have material value and are material assets% They are
su$6ect to attachment and seizure $y legal rocess& and may $e acuired
$y urchase%
;etermination o" 1N an issuance o" a certi(cate is "or u$lic convenience
A -/0 (nancial resonsi$ility o" the alicant& -.0 relia$ility o" the alicant&
->0 riority o" (ling the alication "or a certi(cate& and -0 riority o"
oeration
Prior oerator rule A to carry out the urose and intent "or 'hich the P*+
'as created the la' contemlates that the (rst licensee 'ill $e rotected
in his investment and 'ill not $e su$6ected to a ruinous cometition% ,t is
not there"ore the olicy o" the la' "or the P*+ to issue a +P+ to a second
oerator to cover the same (eld and in cometition 'ith a (rst oerator
'ho is rendering sucient& adeuate and satis"actory service& and 'ho in
all things and resects is comlying 'ith the rules and regulations o" the
P*+% )ccordingly& a +P+ or +P+N ought not to $e granted 'here there is
no comlaint as to e#isting rates and the co% in the (eld is rendering
adeuate services% A regular oerators are re"erred over irregular
oerators
A rior oerator is given oortunity to imrove service
A rior oerator given oortunity to e#tend lines
A $asis o" rule : to revent ruinous and 'aste"ul cometition in order that
the interests o" the u$lic 'ould $e conserved and reserved so long as
the oerator comlied 'ith the terms and conditions o" the license and the
reasona$le demands o" the u$lic& it is the duty o" the P*+ to rotect
rather than to destroy its investment