Case Digest (G.R. No. L-23080)
Facts:
Philippine Long Distance Telephone Company v. City of Davao and the Public Service Commission, G.R. No. L-23080, September 20, 1965, the Supreme Court En Banc, Bengzon, J., writing for the Court.Petitioner Philippine Long Distance Telephone Company, Inc. (PLDT) filed on 23, 1964 an original suit for prohibition and mandamus against the City of Davao and the Public Service Commission (PSC) seeking to enjoin Davao City from carrying out a contract with ITT Philippines, Inc. (which was permitted to intervene) to install a city-wide telephone system and to compel the PSC to require that Davao City first obtain a certificate of public convenience and necessity. The PSC answered on July 15, 1964; Davao City answered on August 11, 1964; ITT’s motion to intervene was granted and it filed an answer in intervention on August 7, 1964. Petitioner’s two applications for preliminary injunction were denied.
The municipal background: on August 7, 1963 and December 27, 1963 the Davao City Council passed Resolutions Nos. 664 and 2015 authorizing the establishment and maintenance of a city-owned telephone system under Section 14(ee) of Davao City’s Charter. Pursuant thereto Davao City contracted with ITT Philippines, Inc. on February 26, 1964 for installation at P3,587,000; a down payment of P717,000 was made on May 29, 1964 and ITT was given until November 29, 1966 to deliver; practically all materials had arrived and construction was advanced.
PLDT did not contest the present need for expansion in Davao but contended (1) that Davao City lacked the power to establish and operate a telephone system and (2) that Davao City was required to secure a certificate of public convenience and necessity from the PSC before proceeding. The record showed PLDT’s existing system covered only the poblacion and had no immediate plan to serve ten outlying districts that Davao proposed to include; national need for additional lines greatly exceeded PLDT’s near-term plans.
After submission Congress enacted the Revised Charter of Davao City (Republic Act No. 4354), effective June 19, 1965, containing Section 16(aa-1) expressly authorizing establishment and maintenance of a telephone system. Interv...(Pro-only)
Issues:
- Is the controversy moot by reason of subsequent enactment of Republic Act No. 4354?
- Did Davao City have the power under its charter (Section 14(ee)) to establish and operate a city-owned telephone system?
- Was Davao City required to obtain a certificate of public convenience and necessity from the Public Service Commission before ope...(Pro-only)
Ruling:
- (Pro-only)
Ratio:
- (Pro-only)
Doctrine:
- (Pro-only)