Title
Land Car Inc. vs. Bachelor Express Inc.
Case
G.R. No. 154377
Decision Date
Dec 8, 2003
Land Car, Inc. sought to operate a bus route opposed by existing operators. LTFRB granted approval, but DOTC reversed it. Office of the President stayed execution; Court of Appeals reinstated DOTC decision. Supreme Court ruled in favor of Land Car, finding no forum shopping and affirming Office of the President's jurisdiction.

Case Summary (G.R. No. 232624)

Background and Procedural History

On May 21, 1999, the petitioner filed a verified application with the Land Transportation Franchising and Regulatory Board (LTFRB) to operate a bus service on the contested route. The respondents, who already held certificates of public convenience for this route, opposed the application, asserting that granting it would lead to “cutthroat competition.” On October 29, 1999, the LTFRB granted the petitioner's application, but this decision was reversed by the Secretary of the Department of Transportation and Communication (DOTC) on June 5, 2000. The DOTC's reversal prompted the petitioner to file a motion for reconsideration which was denied on August 30, 2000. The LTFRB subsequently instructed the petitioner to cease operations on the contested route.

Appeals and Litigation

In response to the LTFRB’s decision, the petitioner sought redress by filing both a letter-appeal with the Office of the President and a petition for certiorari with the Court of Appeals (C.A.-G.R. SP No. 61159). However, the petitioner later withdrew its petition, yet the Court of Appeals dismissed the petition for non-compliance with procedural rules regarding forum shopping. During this period, on October 20, 2000, the Office of the President stayed the execution of the DOTC's orders.

On January 15, 2001, the respondents filed their own petition for certiorari in the Court of Appeals, questioning the authority of the Office of the President to issue the stay order, and arguing that the petitioner was engaged in forum shopping. The Court of Appeals ruled in favor of the respondents, dismissing the petition pending before the Office of the President on the grounds of forum shopping, and reinstating the DOTC's orders.

Legal Implications of Forum Shopping

The petitioner asserts that the appellate court's decision did not align with established jurisprudence regarding forum shopping. Forum shopping occurs when a party seeks multiple legal remedies that are premised on the same facts, thus creating a risk of inconsistent judgments. The Supreme Court has ruled that such actions are improper and subject to dismissal without prejudice, under the existing rules prohibiting forum shopping which is also codified in the 1997 Rules of Civil Procedure.

Jurisdiction and Exhaustion of Administrative Remedies

The case examines the principle of exhaustion of administrative remedies, which necessitates that administrative disputes be resolved within the administrative framework before court intervention. The appellate court recognized that the Off

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