Case Summary (G.R. No. 181293)
Key Dates
• 1977: TRB created by P.D. 1112; PNCC franchise granted under P.D. 1113.
• 1995: Supplemental Toll Operation Agreement (STOA) with CMMTC and PSC.
• July–December 2007: Amendment to STOA (ASTOA), Secretary’s approval, Memorandum of Agreement (MOA), and Toll Operation Certificate (TOC) issued to SOMCO.
• January 2008: Labor strike notice and filings before the Department of Labor and the Regional Trial Court (RTC).
• February 2008: Original petition for certiorari filed with the Supreme Court.
• October 2015: Decision rendered under the 1987 Constitution.
Applicable Law
• 1987 Philippine Constitution (post-1990 decision)
• Presidential Decrees Nos. 1112, 1113, 1894
• Republic Acts Nos. 6957 (as amended by 7718), 8975
• Executive Order No. 497
• Rules of Court Rule 65 (certiorari and prohibition) and Rule 17 (voluntary dismissal)
Issues Presented
- Which petitioners have legal standing?
- Whether forum-shopping occurred.
- TRB’s authority to grant toll-facility operating certificates.
- Validity and regularity of the TOC issued to SOMCO.
- Validity of the Secretary of Transportation’s approval of the ASTOA.
- Whether the transfer of operations to SOMCO was grossly disadvantageous to the government.
Standing to Sue
Only the two labor unions (PSCEU and PTMSDWO) are real parties in interest. As their employer (PSC) ceased operations, the unions face dissolution and member retrenchment. Other petitioners lack personal or substantial interest in challenging the government contracts.
Forum-Shopping
No forum-shopping is established. The labor dispute before the Department of Labor involves allegations of unfair labor practice and retrenchment, distinct from the contractual and regulatory challenges pursued before the RTC and Supreme Court. The RTC case was voluntarily dismissed with confirmation before this petition was filed.
TRB’s Authority to Grant Toll-Facility Certificates
Under P.D. 1112 (Section 3[e]) and P.D. 1894 (Section 4), the TRB may, subject to presidential approval, enter contracts for toll-facility construction, operation, and maintenance, and issue Toll Operation Certificates (TOCs) with prescribed conditions. The PNCC franchise was neither exclusive nor immune to amendment; exclusivity was a contractual term in the STOA and was lawfully modified by the ASTOA.
Validity of the TOC Issued to SOMCO
Conditions required by P.D. 1112 are implicitly incorporated in every TOC. Public bidding and hearings were unnecessary because SOMCO’s assumption was a contractual matter, not a new public procurement. SOMCO meets constitutional nationality requirements (60% Filipino ownership), as respondents’ unchallenged ownership matrices demonstrate.
Validity of the ASTOA Approval
Under the doctrine of qualified political agency, the Secretary of Transportation’s approval of the ASTOA (delegated by EO 497) constitutes presidential approval. PNCC did not lease, sell, or assign its franchise but entered a joint-venture modification under TRB’s contract-granting power in P.D. 1112.
Gross Disadvantage to the Government?
Allegations of “gross disadvantage” are speculative. SOMCO’s capitalization exceeds tha
...continue readingCase Syllabus (G.R. No. 181293)
Procedural Posture
- Petition filed under Rule 65 for certiorari and prohibition, with prayer for preliminary injunction/TRO, seeking to annul:
• The 18 July 2007 Amendment to the Supplemental Toll Operation Agreement (ASTOA)
• The 20 July 2007 DOTC Secretary’s memorandum approving the ASTOA
• The 21 December 2007 Memorandum of Agreement (MOA) among PNCC, PSC, and CMMTC
• The 28 December 2007 Toll Operation Certificate (TOC) issued to SOMCO - RTC of Parañaque City denied injunctive relief for being a completed government project (R.A. 8975) and later dismissed the complaint without prejudice upon plaintiff’s notice of dismissal
- Petitioners elevated the case directly to the Supreme Court on 4 February 2008
Antecedent Facts
- Toll Regulatory Board (TRB) created by P.D. 1112 (1977) to regulate toll facilities; PNCC (formerly CDCP) granted franchise under P.D. 1113 and amended by P.D. 1894
- PNCC contracted with PT Citra Lamtoro Gung Persada (CITRA) for feasibility studies on Metro Manila Expressway (MME) and Metro Manila Skyway (MMS) projects; formed Citra Metro Manila Tollways Corporation (CMMTC) in 1995
- 1995 Supplemental Toll Operation Agreement (STOA): CMMTC builds South Skyway Stages 1–2 & North Stage 1; PSC (PNCC subsidiary) operates/maintains the roads
- 18 July 2007 ASTOA: covers Stage 2 South Skyway; SOMCO replaces PSC for Stage 1 operations/maintenance
- 20 July 2007: DOTC Secretary approves ASTOA under E.O. 497 (delegated presidential authority)
- 21 December 2007 MOA: PSC transfers operations to SOMCO; PSC receives ₱320 million to settle retrenchment liabilities
- 28 December 2007 TOC: TRB authorizes SOMCO to operate Stage 1 South Skyway effective 31 December 2007
- Labor disput