Title
Cababa vs. Public Service Commission
Case
G.R. No. L-11186
Decision Date
Jan 31, 1958
PSC granted ferry service permits between municipalities without local approval, upheld by Supreme Court as part of national highway connectivity.
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Case Digest (G.R. No. L-11186)

Facts:

Background of the Case
This case involves the operation of a ferry service across the Cagayan River in the province of Cagayan, Philippines. The ferry service is intended to bridge a gap in a national land highway interrupted by the river. Two applications were filed with the Public Service Commission (PSC):

  1. Ponciano P. Carillo proposed to operate a ferry between the barrio of Mabangug (Aparri) and the barrio of Alinunu (Camalaniugan).
  2. Balbino Remigio proposed to operate a ferry between the barrio of Mabangug (Aparri) and the barrio of Catotoran (Camalaniugan).

Opposition by Alfonso Cababa
Alfonso Cababa, an existing ferry operator, opposed both applications. He operated a ferry service between the barrios of Catotoran and Calaoagan, both within the municipality of Camalaniugan. Cababa held a certificate of public convenience from the PSC and a contract with the municipality of Camalaniugan for his ferry service.

Motion to Dismiss
Cababa moved to dismiss the applications, arguing that the PSC lacked jurisdiction to grant the permits without prior approval from the municipalities involved. He cited the disapproval of the applications by the municipal council of Camalaniugan.

PSC's Decision
The PSC denied Cababa's motion to dismiss and proceeded to hear the merits of the applications. Cababa then filed a petition for certiorari and prohibition with the Supreme Court, seeking to annul the PSC's order and prevent further hearings on the applications.

Issue:

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Ruling:

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Ratio:

  1. Jurisdiction of the Public Service Commission
    The Court held that the PSC has jurisdiction to grant certificates of public convenience for the operation of ferry services between two municipalities, even without prior municipal approval. The ferry service in question serves as a continuation of a national highway and is not confined within the territorial jurisdiction of a single municipality.

  2. Distinction from Municipal Ferries
    The Court distinguished this case from previous rulings (e.g., Municipality of Gattaran vs. Doroteo Elizaga and Municipality of Gattaran vs. Fruto Elizaga), where municipal approval was required for ferry services operating entirely within a single municipality. In this case, the ferry service connects two municipalities and is part of a national highway, making it a matter of provincial and national concern rather than purely municipal.

  3. Provincial Board's Approval
    The Court noted that the provincial board of Cagayan had already expressed support for the proposed ferry service through a resolution, recognizing the inadequacy of the existing service and the need for improvement. This further reinforced the PSC's authority to grant the certificates without municipal approval.

  4. Public Interest
    The Court emphasized that the proposed ferry service serves the public interest by improving transportation and connectivity along a national highway. The PSC's decision to allow new operators aligns with this objective.

Conclusion:

The Supreme Court ruled that the Public Service Commission has jurisdiction to grant certificates of public convenience for ferry services operating between two municipalities, especially when such services serve as continuations of national highways. Municipal approval is not required in such cases, as they fall under provincial and national jurisdiction. The petition was dismissed, and costs were imposed on the petitioner, Alfonso Cababa.


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