Case Digest (G.R. No. L-7224)
Facts:
- The case involves a petition to restrict the number of units operated by the respondent, A. Gergaray Tanchingco.
- Tanchingco was granted a temporary certificate of public convenience to operate an auto-truck service between Binangonan, Rizal, and Manila, with four units authorized for use.
- On February 23, 1948, Tanchingco was permitted by the Public Service Commission to withdraw or lay off two of the units without prejudice to their reinstatement in the future.
- Tanchingco then applied to have the temporary certificate converted into a permanent one, which was opposed by other operators in the territory.
- Raymundo Transportation Co., Inc., the petitioner in this case, was the only operator that prosecuted its opposition.
- The Public Service Commission, after conducting a hearing, decided in favor of Tanchingco's application and granted him a certificate of public convenience good for 25 years to operate the trips and units previously authorized under the temporary certificate.
Issue:
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Ruling:
- The court affirms the decision of the Public Service Commission, denying the petitioner's request to restrict Tanchingco's operation to only two units.
- The court finds that the claim of ruinous competition has not been proven.
- The Commission determined that there is a need for operating the two units previously withdrawn by Tanchingco, as eleven of the petitioner's authorized units are in storage and not in actual operation.
- Therefore, the operation of Tanchingco's two laid-off units would only replace part of the service that the petitioner is not providing to the public.
- The court also notes that while the petitioner claims losses, there is no showing that these losses were caused by ruinous competition or a decrease in business volume due to an increase in the number of competing units.
- The court emphasizes that the mere possibility of a reduction in earnings is not sufficie...(Unlock)
Ratio:
- The court's decision is based on the principle that the mere possibility of ...continue reading
Case Digest (G.R. No. L-7224)
Facts:
The case of Raymundo Transportation Co., Inc. v. Tanchingco involves a petition by Raymundo Transportation Co., Inc., a transportation company, to restrict the number of units operated by its competitor, A. Gergaray Tanchingco. Tanchingco was granted a temporary certificate of public convenience to operate an auto-truck service between Binangonan, Rizal, and Manila, with four units authorized for use. Tanchingco later applied to have the temporary certificate made permanent and was allowed by the Public Service Commission to withdraw or lay off two of the units while his application was pending. Raymundo Transportation Co., Inc. opposed the application for the conversion of the temporary certificate into a permanent one, arguing that allowing Tanchingco to operate all of its units would result in ruinous competition and decreased earnings for pre-war operators.
Issue:
The main issue raised in the case is whether the Public Service Commission should have restricted Tanchingco's certificate to the operation of only two units, as argued by Raymundo Transportation Co., Inc. The petitioner claims that allowing Tanchingco to reinstate the other two units would lead to ruinous competition and decreased earnings for pre-war operators.
Ruling:
The court affirms the decision of the Public Service Commission to grant Tanchingco a permanent certificate of public convenience without restricting the number of units. The court states that the mere possibility of reduced earnings is not enough to prove ruin...