Case Summary (G.R. No. 242860)
Petitioner
LTFRB and DOTr, exercising police power under the 1987 Constitution to regulate public transport, rely on Department Orders (DO) 2015-11 and 2017-11 to classify and franchise Transportation Network Companies (TNCs) and Transportation Network Vehicle Services (TNVS), including motorcycle operations.
Respondent
DBDOYC, Inc. registered with the SEC in May 2016 and launched the Angkas mobile app in December 2016. It connects passengers with motorcycle drivers without obtaining a Certificate of Public Convenience (CPC) or TNC accreditation from LTFRB.
Key Dates
– May 8, 2015: DO 2015-11 amends DO 97-1097, creating TNC and TNVS classifications
– June 19, 2017: DO 2017-11 defines TNVS and prohibits motorcycles as public conveyances
– May 26, 2016 & Dec 2016: DBDOYC incorporation and Angkas launch
– Jan 27, 2017: LTFRB press release warning against Angkas operations
– Jul 4, 2018: DBDOYC files declaratory relief with TRO/preliminary injunction
– Jul 13, 2018: RTC issues TRO; Aug 20, 2018: RTC grants preliminary injunction
– Mar 11, 2019: Supreme Court decision
Applicable Law
– 1987 Constitution: right to liberty and lawful occupation subject to reasonable regulation
– Commonwealth Act No. 146 (Public Service Act, as amended) and RA 4136 (Land Transportation and Traffic Code)
– Department Orders 97-1097, 2015-11, and 2017-11
– LTFRB Memorandum Circulars on TNC and TNVS accreditation
– Civil Code Article 1732 on common carriers
Facts
DO 2015-11 and DO 2017-11 established TNC and TNVS frameworks and barred motorcycles as public transport. LTFRB issued circulars requiring CPCs and TNC accreditation. Despite warnings, DBDOYC accredited Angkas drivers without such approvals, prompting LTFRB/DOTr enforcement actions.
RTC Proceedings
The RTC granted a TRO (Jul 13, 2018) and, by Order dated Aug 20, 2018, issued a writ of preliminary injunction enjoining LTFRB/DOTr from regulating or interfering with Angkas operations. The RTC found DBDOYC’s right to earn a livelihood under the constitutional right to liberty and deemed its app merely a matchmaking tool for private contracts.
Issue
Did the RTC commit grave abuse of discretion in issuing a preliminary injunction that restrains LTFRB/DOTr from regulating DBDOYC’s Angkas operations?
Analysis
- Preliminary injunctions require a clear and unmistakable legal right and urgent necessity.
- Constitutional rights to liberty and livelihood yield to reasonable exercises of police power for public welfare.
- Under the Public Service Act and Civil Code Art. 1732, DBDOYC’s accredited bikers function as common carriers offering transport services to the public via the Angkas app.
- DO 2017-11 and LTFRB circulars validly extend re
Case Syllabus (G.R. No. 242860)
Facts
- May 8, 2015: DOTC issues Department Order No. 2015-11 amending DO 97-1097 to introduce two new classifications—Transportation Network Companies (TNC) and Transportation Network Vehicle Service (TNVS)—as bases for issuing Certificates of Public Convenience (CPC) for public utility vehicles (PUVs).
- DO 2015-11 defines a TNC as an organization using an online app to connect passengers with drivers using personal vehicles.
- June 19, 2017: DOTr issues DO 2017-11, defining TNVS as PUVs accredited with a TNC and explicitly prohibiting motorcycles as public transport conveyance (Item 2.2).
- LTFRB issues several memorandum circulars (MC 2015-015-A to MC 2015-018-A) prescribing rules for TNC accreditation and CPCs for TNVS, treating TNCs as transport providers and TNVS drivers as common carriers.
- May 26, 2016: DBDOYC, Inc. registers with SEC; December 2016: launches the Angkas motorcycle‐hailing app without securing TNC accreditation or CPCs for its accredited bikers.
- January 27, 2017: LTFRB press release warns DBDOYC that its Angkas app operation is illegal; DBDOYC continues operations unabated.
- July 4, 2018: DBDOYC files a petition for declaratory relief with application for temporary restraining order (TRO) and writ of preliminary injunction before the RTC, arguing that:
• Angkas app is merely a technology platform, not a public transport service provider
• Angkas and its bikers do not render public service
• In the alternative, DO 2017-11 violates Section 7 of RA 4136 by not prohibiting motorcycles as PUVs
• LTFRB and DOTr lack jurisdiction over motorcycles for hire
RTC Proceedings and Assailed Order
- July 13, 2018: RTC issues TRO, finding DBDOYC’s business unregulated and not contrary to law, establishing clear and unmistakable right and irreparable injury if operations are halted.