G.R. No. 181293 - Hontiveros-Baraquel vs. Toll Regulatory Board

TRB was created on 31 March 1977 by Presidential Decree No. 1112 to supervise and regulate toll fee collection and operation of toll facilities by the private sector.
Simultaneously, P.D. 1113 was issued granting Construction and Development Corporation of the Philippines (now Philippine National Construction Corporation, PNCC) a 30-year franchise to construct, operate, and maintain toll facilities in the North and South Luzon Toll Expressways starting 1 May 1977.
TRB and PNCC entered into a Toll Operation Agreement (TOA) prescribing conditions for PNCC's franchise.
P.D. 1113 was amended by P.D. 1894 extending rights to PNCC to include Metro Manila Expressway (MME) with a 30-year term from project completion.

In 1993, PNCC entered a series of agreements with PT Citra Lamtoro Gung Persada (CITRA) of Indonesia for feasibility studies and financing related to MME and the Metro Manila Skyways (MMS) project.
In 1995, PNCC and CITRA formed Citra Metro Manila Tollways Corporation (CMMTC) for project implementation.
On 27 November 1995, Republic of the Philippines, CMMTC, and PNCC executed Supplemental Toll Operation Agreement (STOA), where CMMTC exclusively handled design and construction, and PNCC Skyway Corporation (PSC), a wholly owned subsidiary of PNCC, handled operations and maintenance.
CMMTC completed Stage 1 of South Metro Manila Skyway operated by PSC.

On 18 July 2007, the Amendment to Supplemental Toll Operation Agreement (ASTOA) was executed, adding Stage 2 of Skyway and allowing Skyway O & M Corporation (SOMCO) to replace PSC in operating Stage 1.
DOTC Secretary, under EO No. 497, approved ASTOA on 20 July 2007.
On 21 December 2007, PNCC, PSC, and CMMTC executed a Memorandum of Agreement (MOA) for SOMCO to seamlessly assume operations.
PSC received P320 million from the MOA, mostly used to settle liabilities from employee separation.
TRB issued a Toll Operation Certificate (TOC) to SOMCO on 28 December 2007, effective 31 December 2007.

PNCC Traffic Management and Security Department Workers Organization (PTMSDWO) filed a Notice of Strike for unfair labor practice.
Secretary of Labor assumed jurisdiction over the labor dispute.
On 3 January 2008, unions filed complaint for injunction and prohibition against TRB, PNCC, PSC, CMMTC, and SOMCO to stop ASTOA, MOA and SOMCO's assumption of toll operations.
Regional Trial Court (RTC) denied temporary restraining order citing RA 8975 barring lower courts from enjoining government infrastructure projects.
Petitioners dismissed the case without prejudice on 28 January 2008.

On 4 February 2008, petitioners filed the original petition for certiorari and prohibition with prayer for preliminary injunction to annul ASTOA, MOA, TOC, and prohibit SOMCO's operation.
Petitioners alleged unconstitutionality, contravention of law, and gross disadvantage to government.
Respondents challenged petitioners' standing and the procedural propriety, and justified the legality and validity of contracts, TOC, and transfer of operations.

Whether the Toll Regulatory Board has authority to grant operation rights of toll facilities.
Whether the Toll Operation Certificate issued to SOMCO was valid.
Whether the approval of ASTOA by the DOTC Secretary was valid and equivalent to presidential approval.
Whether the assumption of toll operations by SOMCO is grossly disadvantageous to the government.