Title
Gios-Samar, Inc. vs. Department of Transportation and Communications
Case
G.R. No. 217158
Decision Date
Mar 12, 2019
DOTC & CAAP bundled six airport projects for private development, challenged by GIOS-SAMAR for monopoly & constitutional violations. Supreme Court dismissed petition, citing speculative claims & respecting court hierarchy.

Case Digest (G.R. No. 217158)
Expanded Legal Reasoning Model

Facts:

  • Parties and Procedural Posture
    • GIOS-SAMAR, Inc., represented by its Chairperson Gerardo M. Malinao (“Petitioner”), a non-governmental organization of subsistence farmers and fisherfolk from Samar, filed an original petition for prohibition before the Supreme Court on March 27, 2015.
    • Respondents are the Department of Transportation and Communications (DOTC) and its attached agency, the Civil Aviation Authority of the Philippines (CAAP).
  • Invitation to Bid and Bundling of Airport Projects
    • On December 15, 2014, respondents posted an Invitation to Pre-qualify and Bid for airport development, operations, and maintenance of six regional airports, with a total project cost of P116.23 billion.
    • On March 10, 2015, respondents issued Instructions to Prospective Bidders, grouping the six airports into two bundles:
      • Bundle 1 (Bacolod-Silay and Iloilo): P50.66 billion
      • Bundle 2 (Davao, Laguindingan, New Bohol-Panglao): P59.66 billion
    • Puerto Princesa airport was excluded from the bundling scheme.
  • Petitioner’s Allegations
    • Bundling violates Section 11, Article XII of the 1987 Constitution (anti-dummy and equal-opportunity clauses), as it allegedly allows questionable companies to enter via consortiums.
    • Bundling contravenes Section 19, Article XII of the Constitution (anti-monopoly and anti-restraint of trade), purportedly creating market combinations beyond the capability of medium-sized Filipino firms.
    • Petitioner asserted grave abuse of discretion by the Pre-Qualification, Bids and Awards Committee (PBAC) in bundling without legal authority.
    • Petitioner claimed irreparable injury to the public treasury, seeking a temporary restraining order and/or writ of preliminary injunction.
  • Respondents’ Defenses
    • DOTC argued the petition was premature (no bidding yet), lacked standing, raised speculative constitutional violations, and that bundling did not violate anti-monopoly or anti-dummy provisions.
    • CAAP contended petitioner bypassed the hierarchy of courts, should have sued first in the trial court, and lacked cause of action and authority to sue.
  • Petitioner’s Reply
    • Urged that waiting for bidding would moot the relief, noting five groups were already pre-qualified.
    • Reiterated transcendental importance and asserted legal standing through its representative.

Issues:

  • Jurisdictional and Procedural
    • Whether the petition for prohibition, filed directly in the Supreme Court under its original jurisdiction, was proper despite the doctrine of hierarchy of courts.
  • Constitutional Merits
    • Whether the bundling of the six airport projects is unconstitutional for:
      • Violating the anti-dummy and equal-opportunity clause (Section 11, Art. XII).
      • Creating a monopoly or combination in restraint of trade (Section 19, Art. XII).
      • Constituting grave abuse of discretion by the PBAC.
      • Perpetrating undue restraint of trade and injuring medium-sized Filipino companies.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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