G.R. No. L-4821 - Ariaga vs. Javellana

The case involves a petition for review regarding the installation of ice plants in Iloilo.
Natividad Ariaga, the petitioner, sought a certificate of public convenience to operate a 30-ton ice plant in the City of Iloilo.
The application faced opposition from Elpidio Javellana and La Paz Ice Plant and Cold Storage Co., Inc., existing operators in the area.
The Public Service Commission (PSC) initially granted the petitioners the right to operate within the City of Iloilo on March 28, 1950.

Following the PSC's decision, Javellana filed a motion for reconsideration, which was initially put on hold due to a pending Supreme Court review by La Paz Ice Plant.
After La Paz withdrew its appeal, Javellana's motion was reconsidered, leading to conflicting orders from PSC commissioners.
The PSC ultimately modified its original decision, allowing the ice plants to be established anywhere in the Province of Iloilo, not just the City of Iloilo.

Ariaga contended that the modification was unjust and detrimental to her interests, particularly due to significant investments made based on the original PSC decision.
She argued that the modification lacked evidentiary support and contradicted the necessity established for the ice plants in the City of Iloilo.

The Supreme Court noted that the PSC's original decision was based on substantial evidence demonstrating the need for ice plants in the City of Iloilo.
The Court emphasized that the modification by Commissioners Prieto and Paredes lacked a factual basis and was arbitrary.
The Court highlighted that the evidence presented during the hearings did not support the need for ice plants outside the City of Iloilo.

The Court recognized the significant investments made by the applicants, including Ariaga, in anticipation of the PSC's original decision.
It stated that requiring the applicants to relocate their plants would be unfair and could lead to financial losses, undermining the good faith investment...continue reading