Case Digest (G.R. No. 115381) Core Legal Reasoning Model
Facts:
Petitioner Kilusang Mayo Uno Labor Center (KMU) filed a certiorari petition before the Supreme Court challenging several issuances of the Department of Transportation and Communications (“DOTC”) and the Land Transportation Franchising and Regulatory Board (“LTFRB”), as well as a fare increase order by the Provincial Bus Operators Association of the Philippines (“PBOAP”). On June 26, 1990, DOTC issued Memorandum Order No. 90-395 authorizing provincial bus operators to charge fares within ±15% of the LTFRB’s official rates without formal application or hearing. On March 30, 1992, DOTC promulgated Department Order No. 92-587 establishing a deregulation policy that included a presumption of public need for certificate of public convenience (CPC) applicants and allowed operators to set fares within a ±15% range. An October 8, 1992 DOTC memorandum and the LTFRB’s Memorandum Circular No. 92-009 (dated February 17, 1993) expanded the fare-range to +20%/–25% and institutionalized the pr
Case Digest (G.R. No. 115381) Expanded Legal Reasoning Model
Facts:
- Parties and Subject Matter
- Petitioner: Kilusang Mayo Uno Labor Center (KMU), representing commuters adversely affected by fare increases.
- Respondents:
- Hon. Jesus B. Garcia, Jr., Secretary of the Department of Transportation and Communications (DOTC)
- Land Transportation Franchising and Regulatory Board (LTFRB)
- Provincial Bus Operators Association of the Philippines (PBOAP)
- Nature of Case: Certiorari contesting the constitutionality and validity of DOTC and LTFRB issuances delegating fare‐setting power to operators and presuming public need in CPC applications.
- Chronology of Key Administrative Issuances
- June 26, 1990 – DOTC Memorandum Order No. 90-395: Piloted a ±15% fare‐range scheme for provincial buses without LTFRB hearing.
- March 30, 1992 – DOTC Department Order No. 92-587: Adopted deregulation policies, including fare deregulation (±15% range), presumption of need for CPC applicants.
- October 8, 1992 – DOTC memorandum to LTFRB: Urged adoption of implementing rules for DO 92-587.
- February 17, 1993 – LTFRB Memorandum Circular No. 92-009: Expanded fare range to +20%/−25%, established presumptive public need in CPC proceedings, and removed “prior operator” rule.
- March 16, 1994 – PBOAP imposed a unilateral 20% fare increase under deregulation policy; LTFRB dismissed KMU’s opposition petition on March 24 for lack of merit.
- June 20, 1994 – This Court issued Temporary Restraining Order (TRO) enjoining implementation of the fare increases and challenged issuances.
Issues:
- Whether DOTC Department Order No. 92-587 and LTFRB Memorandum Circular No. 92-009 unlawfully delegated rate‐making authority to private bus operators in violation of Section 16(c) of Commonwealth Act No. 146 (Public Service Act) and Executive Order No. 202.
- Whether the establishment of a presumption of public need favoring CPC applicants, shifting the burden of proof to oppositors, contravenes the Public Service Act’s requirement that applicants prove public convenience and necessity and violates due process and the Rules of Court.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)