Case Digest (G.R. No. L-23080)
Facts:
In Philippine Long Distance Telephone Co., Inc. (“PLDT”) v. City of Davao and the Public Service Commission (G.R. No. L-23080, September 20, 1965), PLDT filed on May 23, 1964 a complaint for prohibition and mandamus against the City of Davao and the Public Service Commission (“PSC”). PLDT sought to enjoin the City from executing its February 26, 1964 contract with ITT Philippines, Inc.—later permitted to intervene—under which ITT agreed to install a 1,000-line telephone system for P3,587,000, a project substantially underway as of late 1964. PLDT, prior operator of a city-wide telephone network since 1931, alleged that (1) Davao City lacked authority under Commonwealth Act No. 51 (Sec. 14[ee] of its charter) to establish and operate a telephone system, and (2) the City had not secured a Certificate of Public Convenience and Necessity (“CPCN”) from the PSC. The PSC and the City answered, preliminary injunctions were twice denied, and the case was submitted to the Supreme Court. CCase Digest (G.R. No. L-23080)
Facts:
- Parties and Proceedings
- Philippine Long Distance Telephone Co., Inc. (PLDT) filed on May 23, 1964 a petition for prohibition and mandamus against the City of Davao and the Public Service Commission (PSC), with ITT Philippines, Inc. intervening by motion granted August 1964.
- PLDT sought to enjoin the City of Davao from executing its contract with ITT Philippines for a city telephone system and to compel the PSC to require a certificate of public convenience and necessity (CPCN).
- Municipal Action and Contractual Arrangements
- On August 7 and December 27, 1963, the Davao City Council passed Resolutions Nos. 664 and 2015, authorizing establishment of a city-owned telephone system.
- On February 26, 1964, Davao City contracted with ITT Philippines, Inc. for installation of a system at P3,587,000, paid a P717,000 down payment on May 29, 1964, with delivery due November 29, 1966; construction thereafter advanced.
- Regulatory and Charter Provisions
- Davao City Charter (Commonwealth Act No. 51) Section 14(ee) empowers the council “to enact all ordinances…for…the comfort, convenience and general welfare of the city and its inhabitants.”
- Public Service Act Sections 13–14(e) exempt government entities from CPCN requirements; PLDT’s franchise (Act 3436, Sec. 14) is expressly non-exclusive.
- Subsequent enactment of Republic Act 4354 (June 19, 1965) Revised Charter of Davao City, Section 16(aa-1), specifically authorizes establishment and maintenance of a telephone system, subject to the Public Service Act.
Issues:
- Whether, under its charter’s general welfare clause and prior to RA 4354, Davao City had authority to establish and operate a municipal telephone system.
- Whether Davao City was required to secure a certificate of public convenience and necessity from the PSC for its proposed system.
- Whether PLDT’s non-exclusive franchise rights were impaired by the city’s entry as a new telephone operator.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)