Title
A.L. Ammen Transportation Co., Inc. vs. Francisco Desuyo
Case
G.R. No. L-10372
Decision Date
May 14, 1958
Francisco Desuyo sought a new TPU certificate for two routes; Alatco opposed, citing ruinous competition. Evidence showed existing services were inadequate. The Public Service Commission granted Desuyo’s application, upheld by the Supreme Court, prioritizing public convenience over competition concerns.
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Case Digest (G.R. No. L-10372)

Facts:

    Parties Involved

    • Petitioner: A.L. Ammen Transportation Co., Inc. (Alatco)
    • Respondent: Francisco Desuyo

    Background and Routes

    • Francisco Desuyo applied for a new certificate of public convenience to operate TPU autotruck service.
    • Two routes were at issue:
    • Bacon-Bulan via Boton (73 kilometers) passing through the municipalities of Sorsogon, Casiguran, Juban, and Irosin in Sorsogon province.
    • Bacon-Tiwi via Legaspi (110 kilometers) passing through Sorsogon, Guinlajong, Castilla, Putico, Daraga, Legaspi, Libog, Manlilipot, Tabaco, and Malinao covering parts of Sorsogon, Albay, and neighboring areas.

    Proceedings Before the Public Service Commission

    • The grant of the certificate was issued following regular hearings and upon a proper application by Desuyo.
    • Alatco opposed the application, arguing on various grounds including service overlap and direct trip requirements.

    Evidence and Testimony Presented

    • Testimonial Evidence
    • Jose Dacog, a lumber dealer, testified regarding frequent travel along the Bacon-Bulan route and attested to the heavy patronage demand.
    • Jose Bansale, a fish trader from Tabaco, testified regarding the necessity of the service along the Legaspi-Tiwi route and his personal travel experiences.
    • Francisco Desuyo described the overloaded condition of vehicles on the Sorsogon-Legaspi trip and the inadequacy of available services by other operators.
    • Witness Testimony on Operational Gaps
    • Rufino Soler, the lone witness for Alatco, admitted that other operators did not offer direct and continuous trips on the routes, highlighting the insufficiency of TFU (Traditional Public Utility) services.
    • Soler’s testimony underscored that operators other than Desuyo did not serve direct Bacon-Bulan or Bacon-Tiwi routes, necessitating multiple transfers.

    Operational Service Dynamics

    • Although Alatco operated on several segments (Sorsogon-Bacon, Sorsogon-Bulan, Sorsogon-Legaspi, Legaspi-Tabaco, and Tabaco-Tiwi), it did not offer a single, continuous trip from Bacon to Bulan or from Bacon to Tiwi via Legaspi.
    • The Commission underscored the traveler’s convenience of having a long, uninterrupted trip over several short trips that require laborious transfers.

    Underlying Considerations

    • The necessity and convenience of a direct service due to a heavy influx of passengers, including merchants, farmers, employees, and students.
    • The importance of eliminating cumbersome transfers to enhance the overall travel experience and efficiency.
    • Recognition that after five years of service under a proper permit by Alatco, the existence of competing services did not amount to ruinous competition in the area.

Issue:

  • Whether the Public Service Commission erred in granting Francisco Desuyo a new certificate of public convenience despite the opposition from A.L. Ammen Transportation Co., Inc.
  • Whether the evidence presented—both testimonial and documentary—sufficiently supported the necessity and convenience of authorizing a new, direct public utility service on the contested routes.
  • Whether the operational setup of Alatco, which did not provide a continuous trip service, affected the Commission’s assessment of public necessity and convenience.
  • Whether the principles of public convenience and necessity properly outweigh the arguments regarding potential competitive overlap between the petitioner’s and respondent’s services.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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