Title
National Power Corp. vs. Vera
Case
G.R. No. 83558
Decision Date
Feb 27, 1989
NPC contested a writ of preliminary injunction barring it from self-providing stevedoring services. The Court ruled the judge lacked jurisdiction under Presidential Decree 1818 and NPC was empowered by its Charter to undertake such services.

Case Digest (G.R. No. 83558)
Expanded Legal Reasoning Model

Facts:

  • Parties and Contract
  • National Power Corporation (NPC), a government-owned and controlled corporation created under Republic Act No. 6395, as amended, to generate and distribute electric power.
  • Sea Lion International Port, Terminal Services, Inc. (Sea Lion), which previously held a Contract for Stevedoring Services for coal‐handling operations at NPC’s pier in Calaca, Batangas; the contract and its Philippine Ports Authority (PPA) permit expired before the events below.
  • Proceedings Below
  • Sea Lion filed a complaint for prohibition and mandamus with damages against NPC and the PPA before the Regional Trial Court (RTC), Branch 90, Quezon City, alleging bad faith and grave abuse of discretion in NPC’s refusal to renew its contract and in taking over stevedoring services.
  • The RTC issued (a) a restraining order barring NPC from further stevedoring and arrastre services at its pier; (b) on June 8, 1988, a writ of preliminary injunction enjoining NPC from those services and directing it to either contract with Sea Lion or conduct public bidding; and (c) allowed Sea Lion to continue its operations.
  • NPC filed a petition for certiorari with the Supreme Court, arguing that (a) under Presidential Decree No. 1818 the RTC lacked jurisdiction to issue injunctions against public utilities; and (b) Sea Lion had no cause of action for a preliminary injunction. The Supreme Court issued a temporary restraining order on June 15, 1988.

Issues:

  • Jurisdiction
  • Whether the RTC had jurisdiction under PD No. 1818 to issue a writ of preliminary injunction restraining NPC’s stevedoring operations.
  • Corporate Power
  • Whether NPC’s charter (RA No. 6395, as amended) empowers it to undertake stevedoring and arrastre services at its pier.
  • Right to Injunction
  • Whether Sea Lion established a clear legal right and cause of action warranting a preliminary injunction.
  • Mandamus vs. Discretion
  • Whether the RTC’s order improperly acted as a writ of mandamus compelling NPC’s corporate prerogative.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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