Title
Geichi Ishi vs. Public Service Commission
Case
G.R. No. 45134
Decision Date
Sep 10, 1936
A Japanese national's application to expand his transportation business in Davao was denied under the 1935 Constitution's prohibition on non-citizens operating public utilities, upheld by the Supreme Court.

Case Digest (G.R. No. 45134)
Expanded Legal Reasoning Model

Facts:

  • Background of the Case
    • The petitioner, Genanichi Ishi, a Japanese subject, was granted a certificate of public convenience on December 18, 1929.
    • The certificate permitted him to operate a Ford automobile for the transportation of passengers in the Province of Davao.
    • The certificate imposed specific conditions, including:
      • Prohibition against altering the prescribed manner of operation.
      • Restriction from increasing or decreasing the number of vehicles, substituting vehicles, changing the carriage form, or sending them on trips outside the authorized zone without prior approval from the Public Service Commission (PSC).
    • The certificate was effective from its issuance and remained in force until further order by the PSC.
  • Subsequent Application and Denial
    • On October 23, 1935, the petitioner applied for authority to increase his equipment by adding another Ford automobile.
    • He justified his request by claiming that the existing number of automobiles under the "PU" denomination was insufficient to meet local transportation needs in the Province of Davao.
    • The PSC, on February 14, 1936, denied his application.
      • The denial was based on the constitutional provision in Article XIII, Section 8 of the Constitution of the Philippines.
      • This provision restricts the grant of any franchise, certificate, or authorization for public utilities to citizens of the Philippines or corporations with at least sixty percent Filipino ownership.
  • Legal Remedies and Judicial Proceedings
    • The petitioner filed a petition for a writ of certiorari against the PSC’s order.
    • The court found that the petition failed to establish that the PSC exceeded its jurisdiction and that the proper remedy was to pursue a review under Section 35 of Act No. 3108, as amended.
    • Despite disposing of the certiorari petition, the court expressed its opinion on the underlying constitutional issue to resolve the matter definitively.
  • Constitutional Question
    • The central question raised was whether the petitioner’s application for an increase in his equipment fell within the constitutional prohibition of Article XIII, Section 8.
    • The issue was particularly significant because the petitioner’s certificate was issued before the Constitution took effect on November 15, 1935.
    • The court noted:
      • The petitioner is not a citizen of the Philippines.
      • He does not qualify under the exceptions provided (i.e., citizenship or corporate majority Filipino ownership).
      • The authorization he sought, even if not a new franchise or certificate, qualified as a form of authorization barred by the Constitution.

Issues:

  • Jurisdictional and Procedural Issue
    • Whether the petition for a writ of certiorari was the appropriate remedy given that the petitioner failed to show that the PSC exceeded its jurisdiction.
    • Whether the proper legal remedy was review under Section 35 of Act No. 3108.
  • Constitutional Issue
    • Whether the petitioner’s request for additional equipment falls within the constitutional prohibition contained in Article XIII, Section 8 of the Constitution of the Philippines.
    • Whether the fact that the petitioner held an earlier certificate of public convenience, issued before the Constitution took effect, gives him any vested right to subsequent authorization for expansion.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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